Despite public concern, a $1.8 billion mixed-use retail, housing and business recreational development is coming to Tempe Town Lake after Tempe City Council’s second and final approval on Feb. 10.

According to the ordinance, the building project to be called South Pier at Tempe Town Lake will feature office space, apartments and condos, retail, a hotel, a pier, a trail and landscaping, all within 12.5  acres.

The project will be built in seven phases across 15 years by South Pier Tempe Holdings LLC, with construction beginning by Jan. 31, 2023.

Details about the building project were discussed during the city council meeting, with many councilors in favor of the approval, while some had reservation because of public concerns.

Several residents spoke at the meeting, voicing their concern with the project in terms of transparency and affordability. Many requested more time to review the project, insisting there is a need for more affordable housing rather than luxury-style housing.

Another concern raised was the temporary loss of property tax revenue, where residents expressed the idea that the revenue is needed for schools and other public goods.

Despite much debate and a failed continuance attempt, the council approved the project in a 7-0 vote.

Mayor Corey Woods spoke passionately about the project, empathizing with those concerned. As a renter himself, Woods said he understands the worries of rising housing costs in Tempe. However, he said that the benefits of the project outweigh the downsides because of the massive revenue and other public benefits South Pier will bring to the city, which could be used to reach affordable housing goals for the city.

“When I see a project like this, with the value of the actual public benefits $2.5 million for public transportation, $10 million for affordable housing, $12 million for a pedestrian bridge, a quarter of a million dollars for the school districts and $2 million for landscaping… that is actual tangible public benefit, not rosy projections,” Woods said.

Maria Laughner, economic development program manager for Tempe, said the project puts the southern edge of Tempe Town Lake into “useful production.”

“The average citizen will have two primary benefits: a new destination for shopping, dining and relaxing while enjoying the beautiful surroundings and a new stop to view and recreate at the lake,” Laughner said.

She said the development will not only be valuable to citizens, but also for tax revenue.

“Developing this last piece of land along the lake will create great new amenities for the region overall while increasing tax revenues that the city will be able to put toward our programs for housing, sustainability, arts and culture, and transit,” Laughner said.

Currently, the land around the project site is developed, but the middle is not being used. There is space to feature new amenities for Tempe residents and the surrounding areas. Council approval of the development is a crucial step in the process for making use of this area.

"This land is the hole in the doughnut, if you will, and people walking and enjoying the lake will not have to walk across a landfill to reach the end,” Laughner said. “This development will finish out the landscaping and provide shade and rest areas for quiet enjoyment.”

Laughner said the development of South Pier at Tempe Town Lake has no downsides.

“It is the city’s goal to always focus on highest and best use, and this project is it,” Laughner said. 

Editor's note: Elizabeth Moore is a student at the Walter Cronkite School of Journalism at Arizona State University.