COT Amendment Approval for Possible Fry’s Marketplace at Houghton & 22nd Street

Frys-Food-Stores
Sample Fry’s Marketplace photo

The Mayor and Tucson City Council voted this week 6:1, with Councilman Steve Kozachik the sole dissenting vote, to approve an amendment to the Houghton East Neighborhood Plan that could allow for the development of a 124,000-square-foot Fry’s Marketplace at Houghton & 22nd on a 16-acre site at the northeast corner of South Houghton Road and East 22nd Street. The amendment allows for the building to be 26 feet tall, instead of the 20-feet limit stated in the original 1985 plan developed when the City annexed the area, a two-square mile area bounded by Speedway on the North, 22nd Street on the South, Houghton on the West and Tanque Verde / Melpomene Way on the East.

Concerns voiced by the neighbors seemed to have all been addressed:

  • Elevation showing the six-foot increase would be minor change to any view obstruction,
  • Using City’s own definition, roof height is determined from the flat of roof height, and not parapet height.
  • The Fry’s store at 22nd & Harrison that will be relocated will have a $3 million budget to repurpose as needed.
  • The necessity for the additional 6 feet lies in the fact that Fry’s needs a mezzanine for offices. To minimize the height elevation, the developer is proposing a declining elevation from 26 feet to 22 feet in construction.
  • The two grocery stores that were recently vacant have both been re-occupied; first, the Safeway at Broadway & Houghton was sold back to Safeway from Haggen and will be re-opened, and second, the former Basha’s at this same corner has been repurposed to an upscale movie theater concept with restaurant and bar included,  recently leased by Craig Finfrock of Commercial Retail Advisors.

Even with approval of the changes for the proposed site, Brentwood Development still needs to go through the rezoning process before it can build the shopping center, which also includes a gas station and two smaller retail buildings. It has already been eleven months since the public meetings started with the neighborhood and individual home owners; rezoning will be at least another 9-months and probably more before the rezoning is approved or possibly denied.

Everyone wants a Fry’s Marketplace nearby to shop, or one would think, as evidenced by more than 100 people attending the council meeting Tuesday night for this agenda item. Mayor Rothschild counted speaker cards as 38 speakers in favor, and 17 speakers opposing the amendment. Neighbors living within doors of each other met there, one in favor, one opposed, as they voiced opinions for 90 minutes.

At issue it became clear is amending a 30-year-old neighborhood plan document. The Eastside Neighborhood Plan states that it is appropriate for this corner to be used for commercial uses and allows C-1 zoning with a height restriction of 20 feet. There has already been precedence set that approved an increased building height of Walgreens at the northeast corner of Broadway and Houghton to 35 feet.

Comprehensive planning which dictates public policy in terms of transportation, utilities, land use, recreation and housing typically encompasses a large geographic area to cover a long-term time horizon. But no comprehensive plan should be intended for three decades without modifications.

Plan Tucson is updated every 10-years by Arizona Statute, to reflect changing priorities of the community as they evolve physically, economically and socially over a decade. But not neighborhood plans that apparently never have to be updated, only amended when progress runs into opposition.

When a conflict between the City Plan, approved by voters last in 2013, and a neighborhood plan arises, which has higher authority? You would think the obvious answer is the City Plan, however this wasn’t apparent at the meeting this week.

As Plan Tucson states: ‘City government plays an important role in determining the business climate. Economic Development Strategic Priorities, as adopted by the Mayor and Council in early 2013 include Business Recruitment, Retention and Expansion, as well as Investment in Key Commercial Areas’. It appears a new Fry’s store and retail center that brings 300 jobs, 175 new jobs, would meet such a stated economic goal for the City.

As pointed out by one passionate union member, ‘these are good union jobs being brought to the community, Fry’s is a good company to work for’.

As so often is the case at these public hearings, many speaking against the project were residents from outside the boundaries of the neighborhood. Councilwoman, Shirley Scott noted that some of the people opposing the project live inside the buffer zone for the Saguaro National Forest, the property being amended is well outside this one-mile buffer zone.

Linda Morales with The Planning Center, who represents the developer, had this to say the next day, “We are very excited and encouraged by the vote of the City Council for the neighborhood plan amendment. As evidenced in the public hearing, there are many people in the area who are excited about the project, which will serve nearby neighborhoods with shops, restaurants and a Fry’s Marketplace. This was just the first step in the public process.  The next step is to rezone the property, where we will be working with city staff, neighbors, Saguaro National Park representatives and other interested parties to craft a plan that our community can be proud of.  Our hope and expectation is that those who have concerns will be willing to have a productive conversation with the project team as we move forward.”

Finrock also had this to say, “We would also like to thank those of you who took the time to come and help support this project. We know how precious your time is and greatly appreciate your time and support. It is clear to us one very important reason we were successful at this plan amendment hearing is because so many supporters came to the hearing to speak in support of the project. We know this process is far from finished and hope that we can count on your continued support. It is important for people in business and our industry in particular, to support each other so that Tucson can grow, prosper, and overcome its negative image as a community that is unfriendly to businesses.”

Councilman Paul Cunningham, after noting his surprise with the large number of supporters at the meeting, motioned to approve the amendment but told the developers, “It’s far from a done deal.” This project is in Councilman Cunningham’s Ward 2.

We shall continue to follow the progress of this project for our readers and urge a quick resolution for the greater benefit of the neighbors in Houghton Eastside Neighborhood and Tucson at large, as well as the developer ready to invest $30 million into our community.

For plan amendment presentation by The Planning Center March 8, 2016 HENP amendment 3-8-2016

To view Houghton Eastside Neighborhood Plan, January 13, 2016, Pubic Hearing click here.

Elevation Fry's Houghton & 22nd
Photos show difference in view with 20 ft and 26 ft elevations for proposed building see the Planning Center HENP amendment 3-8-2016 for original photos

 

 




Real Estate Daily News Buzz – November 9, 2013

Reserve & White house Real Estate Daily NewsReal Estate Daily News Buzz is designed to give news snippets to readers that our (yet to be award winning) editors thought you could use to start your day. They come from various business perspectives, real estate, government, the Fed, local news, and the stock markets to save you time. Here you will find the headlines and what the news buzz for the day will be.

The Dow Jones Industrial average rose 167 points, or 1.1%, to close at 15,761 on Friday. The Standard & Poor’s 500 rose 23 points, or 1.3%, to 1,770. The NASDAQ composite rose 61 points, or 1.6%, to 3,919. The price of oil rose 40 cents Friday to close at $94.60 a barrel.

SURPRISE! US ADDED 204,000 JOBS IN OCTOBER

WASHINGTON – Despite all the warning to expect the contrary, a burst of hiring in October added a surprisingly strong 204,000 jobs to the economy in a month when the government was partly shut down for 16 days. And employers added far more jobs in August and September than previously thought. The unemployment rate rose to 7.3% from 7.2% in September, the Labor Department said Friday. But that was likely because furloughed federal workers were temporarily counted as unemployed. The surge in jobs shows the economy was stronger in October than many economists had expected. Activity at service companies and factories also accelerated last month, an earlier report showed. The figures signal that many U.S. companies didn’t bother or perhaps liked  the government partial shutdown.

TUESDAY NOV 13: TUCSON EMPLOYEE COMPENSATION AND FY13 FINANCIALS ON AGENDA

TUCSON – At their Study Session next Tuesday, November 13th, Mayor and Council will hear a report from staff on preliminary unaudited FY 2013 financial results for the General Fund and provide an update on the 1st quarter General Fund financial results. This report will show a General Fund fund balance of about $54M, which is about $8M less than the previous year. At their Study Session November 26th, M&C is expected to consider three possible increases to employee compensation upon review of fund balance information contained in this report. M&C memo on preliminary unaudited FY 2013 financials: https://1.usa.gov/195PJ6u

STITELER EXPECTS TO BREAK GROUND ON 7-STORY, 150-ROOM HOTEL

TUCSON – Developer Scott Stiteler says his upcoming downtown hotel project, a 150-room, seven-story tower at the Northwest corner of Fifth and Broadway, is now about two months into its design phase. The hotel, tentatively to be called AC Tucson, will reflect the European boutique style of the AC Hotels brand, which Marriott acquired in 2010 and will soon reveal across the country, mostly in major urban centers like Manhattan, San Francisco, Chicago, and Miami. The average daily rate would be about $145, Stiteler told the Rio Nuevo board in July. Stiteler said the hotel is now about two months in to its design phase. Project leaders have traveled to Spain, the birthplace of the AC brand. He expects construction to begin this summer, with the hotel completed about a year and a half later.

BERNANKE: FED HAS GREATER POWER TO COMBAT CRISISES NOW

WASHINGTON (AP) — Chairman Ben Bernanke says the Federal Reserve is drafting rules to close large insolvent banks without bringing down the broader financial system, one of many steps regulators must take to prevent another financial crisis. Bernanke says the absence of a process to deal with systemically important institutions in 2008 left regulators facing the “terrible choices of a bailout or allowing a potentially destabilizing collapse.” Bernanke is making the comments at a conference sponsored by the International Monetary Fund Thursday. The financial overhaul law passed by Congress in 2010 gave regulators better tools to close down large financial institutions, he said. The Fed and other regulators are working to implement those rules now.

SAC CAPITAL PLEADS GUILTY IN $1.8B DEAL

NEW YORK (AP) — SAC Capital Advisors has pleaded guilty to criminal fraud charges in a record $1.8 billion deal with the government. The company’s longtime general counsel Peter Nussbaum entered the plea to wire fraud and securities fraud Friday in Manhattan. But a federal judge didn’t immediately accept the plea, saying she’d wait until a probation report is made. The plea comes four days after the federal government announced it had reached a deal requiring the largest penalty ever for insider trading. The deal requires the Stamford, Conn.-based hedge fund to close its business to outside investors. It also allows prosecutors to continue its criminal investigation and spares no individuals from scrutiny, including its founder, Steven A. Cohen. Cohen was accused by federal regulators over the summer in a civil action of failing to prevent insider trading at the company. He has disputed the allegations.

US CONSUMER SPENDING SLOWS TO 0.2% GAIN

WASHINGTON (AP) — U.S. consumers slowed their spending in September, even as overall income grew at solid pace for the second straight month. Consumer spending rose 0.2% in September, after at 0.3% gain the previous month, the Commerce Department reported Friday. Americans cut spending on long-lasting manufactured goods 1.3%. That partly reflected a drop in auto sales. Labor Day weekend auto sales were counted in August. Income rose 0.5% in September, matching the August gain. The increases in both months were the strongest since February. September’s gain was helped by the end of government furloughs, which had reduced federal pay in the previous two months. The gain in income and the slowdown in spending meant consumers saved 4.9% of their after-tax income, up from 4.7% in August.

DALLAS FIRM TO BUILD BRAIN TREATMENT INJURY CENTER IN SURPRISE

SURPRISE, AZ – A $15 million medical facility specializing in the rehabilitation of traumatic brain-injury patients would bring 125 new jobs to the city by fall 2016 under an agreement expected to be approved next week by the City Council. The deal, with Dallas-based Cobalt Medical Treatment, would pave the way for construction of a 50,000-square-foot Advanced Rehabilitation Center on an approximately 5-acre undeveloped tract off Bell and Dysart roads. Surprise officials would use $160,000 from the city’s economic-development contingency fund to pay fees associated with the project, including development review, civil construction review, civil permit, building permit and plan review. The firm must obtain a certificate of occupancy by Aug. 1, 2015. “A project like this aligns perfectly with the Council’s Strategic Plan,” said Mayor Sharon Wolcott after the plan was presented by officials from the city and Cobalt to the council Tuesday night at City Hall, 16000 N. Civic Center Plaza. “Job creation and the recruitment of new health care operations are cornerstones of the plan.” Full story

MOHAVE COUNTY DECIDES AGAINST WOULD-BE DEVELOPERS

KINGMAN – The Mohave County Board of Supervisors may have put the final nail in the coffin of any commercial development on 285 acres of the former Silverado master planned community. The Board unanimously denied allowing developers more time to meet the conditions of rezoning the property from residential to general commercial/highway frontage after hearing from three residents opposed to the extension Monday. The land is located along both sides of U.S. 93 between Hidden Valley Drive and Hackberry Road. See full story in the Daily Miner.