By Philip Haldiman
Twitter: @PhilipHaldiman

The ambitious project known as Stadium Point has taken its first tangible step in years to bringing a new multi-million dollar mixed use regional attraction to the P83 Entertainment District.

The Peoria City Council unanimously approved a memorandum of understanding with master developer American Life and Steinhauer Properties.

The MOU outlines the pathway to which a development agreement, and eventually a full-fledged live, work, play project will come to fruition

It states that the master developer will fund, design, construct, and operate the vertical mixed-use project of about 1 million square feet of Class A office, hotel, parking, multifamily residential, public space, retail, dining and entertainment on about 17 acres of city owned land.

It also has an off-ramp clause if the parties decide they don’t want to continue with the project.

City Manager Jeff Tyne and city leaders are of the consensus that American Life and Steinhauer Properties are the perfect partners for this public-private project.

“As Peoria continues to grow and mature it is so important for us to keep an eye on our economic opportunity and that means access to high quality jobs, and expanding our different opportunities for such areas as retail, restaurant and full service lodging,” he said. “To be successful at that, it means working with the right business partners, maximizing our most strategic land and building a shared vision. And nowhere is that better illustrated in the P83 area where we have all the ingredients to make a special product.”

A new master developer is in town

American Life President Gregory Steinhauer said Stadium Point is the core competency of what his company does best — developing urban complex projects, those that include office space, hotels and mixed use — projects adjacent to stadiums.

Mr Steinhauer recently permanently relocated from Seattle, where American Life is based, to oversee the Peoria project.

He said he has a very good relationship with the Seattle Mariners, who make the P83 area their home for spring training, along with the San Diego Padres. He has completed hundred million dollar projects adjacent to Safeco Field and CenturyLink Field, where the Mariners and Seahawks play, respectively.

“We are committed for long run,” Mr. Steinhauer said. “Our goal here is to create a tremendous amount of energy. ... We understand how crowds work and how sports work. But I want to be clear. The [Peoria Sports Complex] is not the draw for this project. The project is going to be a draw unto itself, and the stadium simply enhances what we are going to bring to the table for the project and create that much more energy.”

American Life is one of the largest holders of land in the Pacific Northwest, with 2.5 million square feet of land and 3 million square feet of buildings under management. Their portfolio includes an array of mixed use commercial spaces including office buildings, hotels, warehouses, manufacturing and retail properties collectively valued in excess of $1.5 billion.

Mayor Cathy Carlat said Peoria has the workforce, the need, the environment and the desire to change the bedroom portion of the community into a place where residents can really stay all day long and work  and get all their needs met.

The partnership with American Life will create that environment, she said.

“The P83 Entertainment District is a tremendous point of pride for our city and we have worked strategically over the last few years to position this area for long-term success,” she said. “This MOU gives us a peek into the endless possibilities of our future, where residents have greater access to quality employment, retail, and dining opportunities; and we are thrilled to stand alongside American Life to enhance the vibrancy of this district.”

Finding the heart of Peoria

The next step in the process will be a development agreement, which is planned for consideration by the council at the end of the year. Then will come design, constriction and finally operation. The project will be phased over about seven years.

Director of Design Arthur Chang said in order to have long-term success for the project, it must be catalyst for future growth, create an authentic sense of place, and maintain flexibility.

The plan for the project is to invigorate the whole environment around P83, he said.

“We are not just taking about the 17 acres. We are talking about the whole P83 District and City of Peoria. First we will figure out a way we can create a spine and then try to break the scale down to a more pedestrian scale so that in the future we can create a neighborhood where people would want to go and spend time,” Mr. Chang said. “Our project would be the catalyst that sets the tone for all that. It is a future vision that may take many years to get to, but it is something we need to start now and set the right tone. If we do it right, you will have a future P83 that is actually walkable, that has a sense of place and it would be something special that would be the heart of Peoria in many ways.”

But, Mr. Chang said, the project is still in the early stages and he wants to learn more about the city and discover what sets it apart from other cities.

“The project needs an authentic sense of place, something unique to Peoria. That’s why people will come. We have not done that yet because we haven’t spent the time here. But we are going to spend the time to get to know Peoria and figure out what makes it special, and then we will put that layer of Peoria on this project because making this authentic is really critical.”

Class A office

The MOU is not binding but is intended to be an outline and sets the stage for the development agreement, which could include potential long term leases or land purchases or a combination of both, as well as set hard deadlines for the project. Leading up to the development agreement the city will make the site construction-ready.

The site is expected to be construction-ready to make way for Class A office space in 18-24 months, and then other uses will follow.

Economic Development Services Director Rick Buss said this project will fill a much needed demand for Class A office space in Peoria. In the last three years, Mr. Buss said, the city has missed out on 2.7 million square feet of Class A office projects that have been built elsewhere in the Valley.

In last 18 months, Mr. Buss said 941,000 square feet of Class A office projects have been requested through the Greater Phoenix Economic Council. In the last three weeks, he said, one 70,000 square foot unit and two 50,000 square feet units and have been requested.

“So the demand continues. Most real estate professionals think demand will continue, not all. But we feel it will. We also think — you have a lower cost of living and cost of doing business here and lower regulation,” he said.

‘Natural next step’

The city has been trying to bring a unique development to this area for a number of years and released a previous request for proposal in 2011 that did not result in a contract.

Purchasing Supervisor Christine Finney said the scope and intent in 2011 was quite different than the current effort. Back then, the city was still working on a development plan for the P83 area, which did not have the brand it has today.

The RFP that brought American Life into the fold specifically focused on achieving the city council’s goal of creating an economic generator and enhancing the whole P83 district experience, she said.

“With [the 2011] RFP, we described a need for a team with financing in place for the redevelopment of the 17 acres, but it was very broad and did not address the desired asset classes nor did it identify schedule or phasing requirements,” Ms. Finney said.

The city recently made improvements to the P83 brand including streetscape and signs, as well as the nearby auto district on Bell Road, west of Loop 101.

Councilman Bill Patena, who represents the area, said P83 has been an economic driver for the city for some time. He said the city has been making investments to the area over the last 15 years, even before the P83 name was introduced.

He said this includes improvements to infrastructure, solidifying a contract extension with the teams and looking for opportunities to integrate new and complementary uses into the area to create an entertainment district.

Mr. Patena hearkened back to a time when there was a house on the corner of 83rd Avenue and Bell Road, long before the popular In-and-Out Burger arrived in Peoria with much excitement.

American Life aims to expand on many efforts over the years by providing additional opportunities for residents through the creation of a carefully planned mixed-use development, he said.

“The natural next step is to round out the area with a fully integrated mixed-use development that attracts major industry in the form of class A office space and a complementary workforce, high-end retail, restaurants and entertainment, full service hospitality, and new residential/lifestyle options,” he said.

“We believe the market is ready, investors are interested and tenants are seeking space in this location.”

Philip Haldiman can be reached at 623-876-3697, phaldiman@newszap.com, or on Twitter @philiphaldiman.

Philip Haldiman
News Editor | Peoria
@PhilipHaldiman

phaldiman@iniusa.org

Philip Haldiman is a third generation Arizona native with brief residencies on the east and west coasts. He has bachelor’s degrees in Theater and Journalism at Arizona State University, and is an award winning journalist with more than 15 years worth of experience in reporting and editing. Most recently, he took first place for investigative reporting and third place for best sustained coverage or series at the 2023 Arizona Newspapers Association awards. In his free time, he produces an autobiographical comic book about his time spent in Hollywood and his life as a cult film star.