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OPINION

Alley: My account of the myths and facts surrounding Scottsdale Southbridge II

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Southbridge II is, admittedly, a beast of a project proposed along the canal in the 5th Ave district. It will change everything we recognize about Old Town in ways that some embrace and some resist.

All through 2019, the developer, Carter Unger with Spring Creek Development, has gathered wide support through his outreach efforts to local businesses and the community.

Besides being available to anyone with concerns and questions, he has hosted dozens of meetings with stakeholders in an unprecedented display of transparency --- one the community has begged for as we see large projects like this make their way through the entitlement process. There is nothing in this project that should come as a surprise.

Now this project is being used as a political football for a new PAC, which is actively fighting appropriate growth that will help Old Town thrive in harmony with the western charm that makes it unique. Let’s take a hard look at the facts.

Myth: Southbridge II is under-parked

Parking has been a consistent concern in Old Town, and deservedly so. Parking was the No. 1 issue with Museum Square winning over the community. It unanimously passed council with much fanfare last month after an agreement was made between the merchants, city and the developer.

Let’s compare the two:

Museum Square (sourced from news coverage and the city’s parking map --- I welcome any corrections to these numbers from the Museum Square development team:

  • Parked above code by 103 private spaces;
  • The maybe: 149-space parking lot temporarily on the hotel site, adding 41 spaces at Stagebrush, and adding 41 street spaces;
  • Adds a total of 160 public parking spaces at a cost of $7.2 million to the city, accomplished by an equivalent reduction in land price; and
  • Museum Square is surrounded by only 64 non-street public parking spaces within walking distance bordered by the major arteries surrounding it; any number of public parking is a big win.

Southbridge II

  • Parked above code by 74 private spaces;
  • The maybe: Tandem parking at the residential sites;
  • They are requesting no in-lieu parking credits, off-site agreements, or parking waivers of which they qualify for 92;
  • There will be 12 new on-street public parking spaces added, as well as 399 evening/weekend public parking spaces from the office parking;
  • Should the city agree to sell the Rose Garden land at 5th Avenue and Goldwater - which currently has 116 uncovered public parking spaces available - Unger has agreed to build 78 fully public parking spaces on that site;
  • The city is investing the $1.76 million in height and density bonuses paid by Spring Creek for parking; Spring Creek is matching the rest to pay for these underground spaces;
  • The city still gets the full value of the land and pays $0 out-of-pocket; and
  • Southbridge is surrounded by more than 3,000 non-street public parking spaces within walking distance and within the boundaries of major streets.

In both scenarios, no current on-street parking will be sacrificed as a result of these developments.

Southbridge II improves upon the parking compromise struck at Museum. The parking agreement places the cost burden on the developer, and it’s surrounded by thousands of public parking spaces.

Myth: It’s too tall

Our council unanimously approved the update to the Old Town Character Area Plan in July 2018. See it here: https://www.scottsdaleaz.gov/AssetFactory.aspx?vid=129757.

Its vision is this: “Comprised of its unique districts, Old Town Scottsdale is a dynamic city center which recognizes its western heritage while boldly looking to its metropolitan future.”

This project fits well within that vision according to the designated land uses, which include areas for higher-density growth, and others that are protected at a lower scale.

When the council approved the updated plan, the consequence of that decision is that it immediately skyrocketed the value of that land to its highest possible use --- 150’. Smart landowners will never sell --- or build on --- their land at pre-July-2018 value. So, if Spring Creek were to sell their land to the next developer, it will be at the highest-possible-use price, which means that the only reason a buyer would purchase is to build a similar project.

Technically, a developer who owns this property can ask to build at 150’ across the board. However, the varying heights, sightlines, setbacks, and stepbacks will make this project much more palatable.

Since its unanimous approval at Planning Commission in August, the developer has stepped back the canal residential buildings further than originally proposed to help make the building less daunting along the canal, resulting in a loss of units and a significant loss of revenue.

Myth: No public benefit.

Southbridge will benefit Scottsdale in two major ways. First, the amount of open space and retail --- including an urban grocer within 100,000 square feet of retail space --- is remarkable and feeds into the existing synergy of the Waterfront.

There will be 20,000 square feet of public open space spread over three plazas, one of which will showcase our beloved Bob Parks horse fountain. All parking will be at or below grade. All rights-of-way and sidewalks will be landscaped and shaded.

The current economic impact of their holdings as-is rings in at $250,000 per year in tax revenue. Southbridge II will bring in $4.5 million in tax revenue annually after build-out according to the economic impact analysis done for the project.

Imagine what it will do for the merchants in the area with all that consistent foot traffic.

Myth: Merchants do not support this project.

Spring Creek has numerous letters of support from property owners and merchants in the area who recognize the need to redevelop to help Old Town businesses thrive moving forward. Mr. Unger is a Scottsdale local who recognizes the impact of a project of this magnitude. He is developing it in careful and appropriate phases to minimize negative impacts.

There is indeed much to speculate on long-term benefits vs. immediate danger to businesses in the vicinity. The goal is to help make the shops in Old Town viable all year long.

This project has been no secret to anyone in the area as this is a dream of Fred Unger’s dating back more than 20 years. He wouldn’t have proposed 150 feet at the time because that was a non-starter. The city changed the rules, not Spring Creek.

Myth: Southbridge will encroach on city land.

Spring Creek is not building anything under or over 5th Avenue; they are simply upgrading the sewers that run through it, which will require careful planning and timing. Good developers address infrastructure needs to accommodate projects.

Myth: If we stop Southbridge now, we will stop height and density in Old Town.

While Southbridge II has been in the works for decades, the updates and changes listed in this article have been in the works for months based on feedback collected directly from stakeholders. If anyone wants to stop this development or any like it in the future, their referendum needs to be against the council to reverse their decision to allow 150’ heights, not individual developments.

Now that the Marquee has been approved under this new plan, the City will face multiple lawsuits from the development community.

No project will ever be perfect. No developer can meet everyone’s demands. But Spring Creek is homegrown, cares for the community and merchants, and has done everything within --- and perhaps even beyond --- reason to make this project the best it can be for Scottsdale.

Editor’s note: Ms. Alley is a resident of Scottsdale and community advocate