Southbridge Two signatures verified, but Scottsdale developer vows court battle

Political lines drawn as Old Town referendum drive under legal scrutiny

By Melissa Rosequist
Twitter: @mrosequist_

The referendum petition to ask Scottsdale voters to decide the fate of Southbride Two in the Old Town area has been deemed successful by officials.

On Jan. 31, Scottsdale City Clerk Carolyn Jagger confirmed the sufficiency of petition signatures, including verification and certification by both the clerk’s office and the Maricopa County Recorder.

As a result, the total number of valid signatures on the referendum petition meets the necessary requirement to place the measure on the Nov. 3 general election ballot.

The referendum petition, spearheaded by the political action committee, “For the Preservation of Old Town Scottsdale,” needed nearly 12,000 verified signatures.

The petition drive, which took place for about 30 days in December 2019, asked Scottsdale voters to support an initiative to overturn City Council’s Dec. 4 split vote on the mixed-use Southbridge Two project approved to be built along Fifth Avenue.

The mixed-use project --- estimated to cost $574.5 million throughout construction --- has been coming down the pike for some time, with community members taking a side on the project as its hearing date neared.

At its core, Southbridge Two is setting out to redevelop a 9.94-acre site to include a mix of residential, hotel, office and commercial uses, with up to 570 multifamily dwelling units, 200 hotel units, 119,000 square feet of Class A office space and 86,000 square feet of retail space.

In addition, the developer will purchase an adjacent city property known as the Rose Garden, a 1.24-acre parcel used for public parking, for $8 million.
Spring Creek Development President Carter Unger says the overall goal is to replace the same retail that exists today, with the addition of high-end residential units, office space, and a hotel.

However, the planned face-lift was too much for some proprietors to bear and thus began the effort to stop it. While the petition referendum specifically sought to stop Southbridge Two, PAC leader, Janet Floyd Wilson, asserts the overall goal is to keep the current character of the area for years to come.

What this means for Southbridge Two

Mr. Unger says the verification of the signatures was not a surprise in any way, stating how the system in place looks at a small sample from a very high level.

“I thought we should start conserving our financial resources and not fight this --- the truth is, if we don’t fight it, then, we will end up having to kick tenants out,” Mr. Unger explained. “It’s not the right thing for the area. It’s not the right thing for the over 100 property owners around us in support [of Southbridge Two] as opposed to the three [property owners] not in support.”

Mr. Unger has remained steadfast that the project will be a benefit for the Old Town area and the community at-large.

“Whether it’s in our financial best interest or not, we’re going to keep fighting for what’s best for Scottsdale,” he said.

The fight will be taken to a judge, Mr. Unger confirms, saying he believes a lot of “shenanigans” took place during the petition-gathering effort saddled with misinformation.

“There’s a lot of evidence showing their campaign of misinformation and outright lies,” he said.

Mr. Unger says he has spoken to people involved in the referendum petition who admitted to him that what they thought they were supporting was false.

“We’re going to go to a judge and attempt to prove this fraud and hopefully save this project and get Old Town Scottsdale moving in the right direction,” Mr. Unger said. “Instead of just being known as a club and bar district.”

However, if their efforts in court are not successful then Mr. Unger admits he would have a very tough time allowing his project to go to election.

“If we’re not able to successfully prove misinformation and lies, and get the number below the threshold, we’d have to make a very tough decision of going to election,” he said. “Most likely I will pull my application and build within existing zoning. That means no open space, no below-ground parking, no significant retail, no office.”

Building within the set zoning envelope would result in standard stick-frame apartments, Mr. Unger said.

“A lot of people’s livelihoods are depending on us,” he said. “But I’m not going to have my company go bankrupt because three property owners, Bob Littlefield and David Ortega want to put Scottsdale back 20 years.”