Tempe’s Danelle Plaza is moving forward in a redevelopment process with the city council recently holding its first public hearing to sell the property to developers.
As explained in a city release, Danelle Plaza, 3400 S Mill Ave., will be transformed into a “mixed-use project with multifamily market rate, workforce and affordable residential units, ground floor retail, restaurant and other hospitality amenities.
However, no specific plans or proposals for the project have been presented at this time, the release stated. In future phases, the city and developers will go through the due processes necessary to complete the project.
Public amenities that could be a part of future developments at Danelle Plaza include art walls, affordable housing, an outdoor amphitheater, a public park and EV charging stations.
In a report prepared by Economic Development Administrator Joshua Rutherford, he explained that the city began its search for a developer for Danelle Plaza in August 2022, with Guina Affiliated Developers LLC and Desert Viking-Danelle Plaza ultimately receiving the contract.
A comprehensive development agreement was approved by city council in November 2023, which outlined the phased approach for preparing the project site for sale and established a purchase price for the city’s property.
“The purchase price of the city-owned property is $2,750,000, which is the fair market value for the city property based on appraisal,” the report stated.
Throughout the dual-phase process, the city and developers assembled properties within Danelle Plaza and addressed any barriers to the redevelopment of the site. Entering the second phase, the city will decide whether to transfer its property to the developers following the second public hearing on Jan. 18.
At its Jan. 4 meeting, Tempe City Council held the first public hearing for the transferring of city property at Danelle Plaza to the developers, which included a presentation from Rutherford, Assistant City Attorney Sam Arrowsmith and Economic Development Director Mike DiDimenico on what has been done so far.
Following the presentation, Mayor Corey Woods opened the public hearing portion where a number of residents spoke of the Danelle Plaza, airing concerns and expressing support for the tentative sale.
Tempe resident David Sokolowski spoke at the meeting to discuss the city’s sustainable development efforts, specifically to draw attention to the ongoing housing crisis and need for affordable housing in Tempe.
“Tempe will need 20,000 low-income units by 2040, which means Tempe should build 100 units every 30 days,” Sokolowski said.
As part of its redevelopment, he stated that it would be reasonable to build 45 to 65 units per acre, as affordable housing is a potential addition to come as the city and developers begin to consider what to do with the property.
Sokolowski urged that council seriously consider making a considerable part of Danelle Plaza affordable housing, as “every year that cities fail to build affordable housing, it’d be more likely that Arizona could take away local control because a handful of token projects won’t be enough.”
Other residents shared similar sentiments, also emphasizing the city’s need for affordable housing, while also balancing the interests of its residents. As no formal plans have been made for what Danelle Plaza will be redeveloped into, many expressed that they are eager for the city to engage with the community going forward to develop responsibly.
Phil Yates, president of the Riverside Neighborhood Association, spoke about this lack of information and how residents want to be included as the city and developers create a more concrete redevelopment plan.
“The progress of Tempe is inevitable, of course, but with this, there are a whole lot of people that are very, very passionate about how we do progress, where we go,” Yates said.
With the redevelopment of Danelle Plaza, Yates noted that he would like to see arts, culture and public gathering space preserved as the city has expressed, but that the community is hoping for transparency in these decisions about the density of this project.
In closing the public hearing, Mayor Woods spoke of his dedicated patronage of the plaza and its businesses over the years, echoing other council members in their hopes of revitalizing Danelle Plaza in a way that best supports the community.
“The process is only beginning but I really do agree with what a lot of our residents said this evening,” Woods said. “This could set a really important tone for future development in the city of Tempe.”
Reporter Caroline Yu can be reached at cyu@iniusa.org. To voice your opinion on this story, connect with us at AzOpinions@iniusa.org.
Meet Caroline Caroline Yu joined Independent Newsmedia, Inc., USA, in 2020 as a summer intern covering Scottsdale. As an intern, she continued her coverage of Scottsdale, Paradise Valley and Tempe. After graduating in 2022, Caroline became a full-time reporter for Scottsdale and Paradise Valley. She is currently reporting for the Tempe market.
Community: She is a supporter of the environment and tries to get involved with related community events.
Education: Arizona State University with a BA in Journalism and Mass Communications, with a minor in French.
Random Fact: She used to be a ballet dancer for 10 years.
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