After years of curves and bumps, the “long and winding road” of Museum Square has reached a straightaway.

The Scottsdale City Council unanimously approved several items along with the development plan --- including a fourth amendment to its purchase and sale agreement, rezoning, a right-of-way abandonment and a budget transfer --- as part of the project at its Oct. 15 meeting.

Zoning attorney John Berry spoke to the council regarding the project, calling it a big collaboration between a diverse array of residents, business owners and community members who care about the city’s arts district.

“Now is the time for the renaissance of the arts district, a once brilliant but now faded jewel in the city’s crown,” he said. “What’s before you tonight is a once in a generation opportunity, an opportunity born in collaboration.”

Museum Square is a mixed-use development that will sit around the intersection of Second Street and Marshall Way along the Goldwater Boulevard curve. The city sold the Loloma Lands, parcels west of Marshall Way, for $27.75 million to the developer Macdonald Development Corporation.

The site is home to mostly unused land. The Scottsdale Artists School, Scottsdale Museum of the West and Stagebrush Theater surround the site.

Plans call for the site to house a hotel tower and four residential buildings, three of which will be along the Goldwater Boulevard curve, as well as two public open space plazas including one on the north end called the Museum Square plaza and one to the south.

In total, 60% of the site will be developed open space despite not needing any per a city ordinance. Though the city won’t own any of the open space, the developer will license the space to the city for public use.

The 190-room hotel will stand at 150 feet and one of the southern buildings will be 149 feet. The other two southern building will be 135 and 139 feet, and the fourth residential building in the northeast corner will be 75 feet. The residential buildings will include 346 dwelling units.

A community concern was parking. As part of city staff’s presentation, Senior Planner Bryan Cluff outlined plans for 774 private parking spots, 103 more than the requirement.

For public parking, Mr. Cluff anticipates the addition of 204 spots with the potential of 99 more if the city moves forward with proposed underground parking at the Stagebrush Theater. The hotel would provide 160 public spaces, an increase from 127 on the Second Street surface lot.

There are plans for more on-street parking, which could bring 83 more spots to the area. In total, Mr. Cluff says there would likely be 612 public parking spaces in the area, a 160 increase from existing conditions.

The approval drew widespread acceptance from numerous people and organizations, with the city receiving nearly an hour’s worth of public comment, all in support of the project.

“They [economists] tell us we need vibrancy, we need density, we need new people and if we can replace that, we can have a vibrant Scottsdale, not only for right now, but for the future,” Bill Crawford, downtown Scottsdale resident and business owner, said during public comment.

“So this particular project, it gives everything to downtown Scottsdale and to the arts district that we need, desperately, not just for now, but for the future.”

The nitty gritty

In total, the City Council approved six points as part of the overall approval of Museum Square. Those approvals included:

• A resolution authorizing the fourth amendment to the real property purchase and sale agreement between the city and ARC Scottsdale Holdings, and Arizona Limited Liability Partnership regarding the purchase of city-owned land between Goldwater Boulevard and Marshall Way to the north and south of Second Street.
• An ordinance approving a zoning district map amendment of the site from downtown/downtown multiple use type-2 planned block development downtown overlay and downtown/office commercial type-2 planned block development downtown overlay to downtown/downtown multiple use type-3 planned block development downtown overlay zoning. This ordinance also includes the development plan with amended development standards.
• A resolution declaring Museum Square Development Plan a public record.
• A resolution authorizing the Museum Square Development Agreement.
• A resolution for the abandonment of a 10-foot wide right-of-way segment along the south side of Second Street.
• A resolution authorizing a city treasurer budget transfer of $885,063.83 from the General Fund to the downtown special improvement trust fund for the bonus payment of the development agreement.

Parking was a main focus of the fourth amendment. Along with the outlined parking estimates, plans call for the hotel site to serve as an interim parking solution with 149 surface spaces on the site prior to the hotel’s construction.

The amendment will also adjust the purchase price down $1 million because of deed restriction termination. This comes because of height and density bonus payment reduction.

The final sale price would be $26.75 million for the final city-owned property. Both parties agreed to further adjust the purchase price by $7.1 million to allow for underground parking at the hotel.

Construction, per the amendment, would have to start within the next 10 years and be completed within 12 years. Mr. Cluff said city staff anticipate construction to be finished much earlier.

As for the abandonment, Mr. Cluff said it is a sliver property along the north end of the south parcel along Second Street. He said it was a remnant right-of-way that was included in the purchase and sale agreement.

It should, Mr. Cluff said, go through the abandonment process since it is a public right-of-way. Compensation for the abandonment is part of the purchase price.

Public sentiment

After listening to an hour of public comment in favor of the Museum Square proposal, each council member spoke regarding their support for the project. When it came time for the vote, all seven voted in favor and an applause erupted in the City Hall Kiva.

“Thank you to everybody,” Mayor Jim Lane said amidst the applause. “Thank you to everybody who contributed by thought and by actions in bringing this together.”

Many who attended and spoke shared their thoughts on the arts district. There were some children who spoke of the impact the Stagebrush Theater had on their lives while some adults spoke of the positive effect it would have on the downtown area.

“The addition of the Museum Square development will significantly increase the attraction of residents and visitors to this area,” Jim Bruner, former Scottsdale city councilmember, said.

“This will benefit the existing art entities, Scottsdale Artists’ School, Stagebrush Theater and the wonderful, private galleries just one block north. And, of course, the reason for this development in this location in the first place, it will benefit the Museum of the West. We at the museum welcome with open arms this Museum Square project.”

Councilmember Solange Whitehead initially had reservations but said the developers and city staff went “above and beyond” to address her concerns of green construction standards and an assurance the developer would build what they said they would build.

“To me, the whole process exemplified Scottsdale,” she said in a phone conversation. “All the stakeholders, including the community, came to the table. We figured out how to do it in a way that made Scottsdale better.”

Ms. Whitehead said she felt like the development “earned” its height because developers made efforts to have public benefits such as the open space areas.

Councilmember Linda Milhaven said she was amazed a project of this magnitude came forward without public opposition.

She says she believed the city’s parking investment was unnecessary since she believes ride share companies will lower the parking needs, though she said not enough to oppose it.

Several of the councilmembers praised Macdonald Development Corp. for its efforts in involving the community and working with the City Council and staff.

“Thank you, Mr. [Rob] Macdonald,” Vice Mayor Kathy Littlefield said, “for working with us and for creating an area in Scottsdale to become the new Scottsdale’s go-to place for our work, live and play.”