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Chandler Council approves new Site 7 agreement

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CHANDLER — A major development project in Downtown Chandler finally has taken a significant step forward.

Site 7 is the working title of a multiuse redevelopment project of property along Washington Street, from Buffalo Street north toward Chandler Boulevard.

At an Oct. 24 work session, John Owens, a downtown redevelopment specialist, detailed an agreement that will allow for new construction of a seven-story building that would bring a purpose for a long-discussed strip of land on the edge of downtown Chandler.

Council approved the ordinance three days later during its Oct. 27 meeting.
Using the term “nearly whole-block development,” Owens described how an initial Jackson Dearborn Partners plan blossomed into a larger, multiuse project that will involve the sale of about 1.7 acres.

Jackson Dearborn Partners, doing business as One Chandler Owner LLC, already owns land along Chandler Boulevard and will buy the 1.7 acres adjacent to the southeast, along Washington Street, and the city’s parking area along Buffalo Street for $2.94 million.

Owens outlined the ordinance in the work session. He mainly addressed how many more East Valley businesses and residents can be served than in Jackson Dearborn’s original plan.

“This has turned into a more robust project,” Owens said. “The office space involved in this is possible because of the city land involved. We understand this is a very important intersection (Arizona Avenue and Chandler Boulevard). That’s the gateway to our downtown.”

Jackson Dearborn’s initial plan for the north parcel was to pair 126 multifamily residential units with about 3,400 square feet of ground-floor commercial space. The agreement council approved Oct. 27 calls for 16,000 square feet of ground-floor commercial space, 13,000 square feet of office space, 290 multifamily residential units and a self-contained parking structure.

Owens pointed out council has directed staff to attempt to develop that block of downtown Chandler as a single project for the past 20 years.

In May 2017, the city issued a request for proposal for Site 7, calling for retail, restaurant, office/services, and parking. Council approved a development agreement with LGE Development Group LLC in April 2019.
However, that agreement didn’t lead to a project being built. LGE and the city mutually terminated the agreement in August 2021.

“This was due to the developer being unable to meet the construction time lines specified in the agreement,” a staff report says.

In December 2021, Jackson Dearborn Partners, acquired the parcels immediately north and adjacent to Site 7, along Chandler Boulevard. That made the next step a series of negotiations between Jackson Dearborn and the city over ways to use the whole property for a single project.

“There are no incentives in this contract,” Owens pointed out. “And the developer still has to go through all the planning and zoning procedures.”

The agreement has a buyback clause that allows the city to reacquire Site 7 if the developer isn’t able to fulfill its obligations. Deadlines include starting construction within 24 months and completing construction within 54 months.

Councilor Mark Stewart asked Owens why there was such a long maximum time until the construction start deadline. Owens said for a project of this scale, it’s important all planning, code conformances and finance details are worked out, and those take time.

The city produced a news release about the agreement that included a statement from Ryan Tobias, a partner with Jackson Dearborn.

“We are extremely excited to work with the City of Chandler to build a true landmark mixed-use project at this preeminent corner in downtown Chandler,” Tobias said in the statement.

The city said One Chandler Owner also agreed to improve alleys between the project and Jack in the Box, located along Arizona Avenue.