Tempe to redevelop Food City Plaza for more diverse housing, grocery store

The city of Tempe announced its plans to transform the recently purchased Food City Plaza in north Tempe, bringing about mixed-income housing, a grocery store and police station to meet the community’s needs.

Tempe bought the center as part of its broad Affordable Housing Strategy and Hometown for All initiative, designed to accelerate the growth of housing opportunity in the city, a city release explained. 

Food City Plaza is one of six projects on the horizon that will significantly expand housing options, including affordable housing options.  

“Our investment in the Food City Plaza represents the ongoing commitment to north Tempe and to creating more housing opportunities for anyone who wants to call our city home,” Mayor Corey Woods said in the release. 

Woods added that the city believes that this new shopping and housing hub will be transformative and spur even more development in the area.

Food City Plaza represents a $20 million investment to date through city, county and federal funds.

Last year, Maricopa County awarded the city $10.8 million in American Rescue Act Plan funds to increase affordable housing in north Tempe, the release stated. Combined with city funds of $8 million, Tempe recently closed on the sale. 

Earlier this year, Rep. Greg Stanton secured nearly $1.7 million in federal funds to bolster the city’s efforts to add more affordable housing through the Food City Plaza purchase.

“Collaboration between local municipalities is the key to addressing Arizona’s housing crisis,” said Jack Sellers, District 1 chairman of the Maricopa County Board of Supervisors, said in the release.

Sellers continued that the partnership between the county and the city of Tempe allows the agencies to leverage their combined resources to house residents of diverse socioeconomic backgrounds while also protecting the local economy. 

“Together, we can ensure Tempe residents have access to safe, affordable, and thriving communities they can call home,” Sellers said.

Rep. Stanton also said in the release that the Food City Plaza project is the third affordable housing project that he’s partnered with Mayor Woods and the city of Tempe on in three years, noting that it will unlock even more opportunity and investment in north Tempe.

 “Every family deserves an affordable and safe place to call home,” Stanton said. 

The 7-acre Food City Plaza project includes:

• Mixed-income housing, including affordable housing. The city plans a minimum of 50% of the total number of units constructed available to those who have an income below 80% of Area Median Income. The total number of units will be determined once the entire mixed-use site is designed.
• A grocery store to meet community needs
• A police station and training facility, pending the outcome of the Nov. 5 bond election

The city will be seeking a development partner for the project. Construction is not expected to begin for more than two years to honor the leases of the existing businesses, according to the release. Tempe’s Economic Development team continues to meet with each tenant to assist with relocating and provide resources.

“Affordable housing is needed throughout Tempe. It is very much needed for those who work in our city,” said longtime north Tempe resident Kim Gaffney in the release. “Even though our neighborhood on the north end already has affordable housing, most of it is aging.”

Gaffney explained that the best communities have a mix of housing options as a way to promote tolerance and understanding. She said that the Food City development will complement the large market rate density along Scottsdale Road, both existing and planned.

Tempe has prioritized affordable housing and will take a measure to Tempe voters to expand options. 

On Nov. 5, Tempe voters have the opportunity to fund an increased supply of affordable housing through the 2024 Special Bond Election. Question 3 seeks voter authorization to issue and sell general obligation bonds of up to $32 million for this expansion. 

Learn about all three questions at tempe.gov/bond.