Government

Tempe begins negotiations to revitalize Danelle Plaza

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A beloved Tempe shopping center could get a new life while maintaining its longtime local identity through a redevelopment opportunity now moving forward.

The City Council voted on Sept. 22 to begin negotiations with a redevelopment team that wants to remake Danelle Plaza, located at the southwest corner of Mill and Southern Avenues.   

First opened in 1963, dozens of restaurants, bars and retail shops have been located in the plaza over the years, including music venues, a former skateboard park and more. A temporary Tempe City Hall was once housed in the plaza while the current City Hall was under construction.

The goal of this possible redevelopment is to maintain the plaza’s iconic local identity and businesses like Yucca Tap Room, while livening it with affordable and workforce housing, new community space and other new uses. The city of Tempe owns a portion of Danelle Plaza. 

City staff will begin negotiations with the team of Guina Affiliated Developers, Hu Commercial Properties II, LLC, Yucca Rental Properties, LLC and Desert Viking Development, LLC.

Negotiations could take several months and may result in staff bringing a proposed development agreement to the city council for its consideration. There will be opportunities for public input. 

Rodney Hu, second-generation owner of Yucca Tap Room and owner of Hu Commercial Properties II, is part of the team negotiating with the City of Tempe.

“This plaza means so much to my family and the community,” Hu said. “We’re excited that the city has given us an opportunity to negotiate to improve Danelle Plaza for future generations.”

“This is an opportunity for the city to begin negotiations on this property that is so valuable to the community in terms of its history, location and culture,” said Eric Guina, Guina Affiliated Developers.

Tempe, Arizona, Tempe City Council, government, development, Danelle Plaza