Inching the process of acquiring a parcel of state trust land closer to auction, large-scale retail developer Phoenix-based Vestar, has submitted a preliminary application and conceptual site plans to the City of Phoenix proposing a zoning change to allow for the construction of a commercial retail center with two large big box anchor stores along with smaller scale retail and hospitality uses at the southeast corner of I-17 & Dove Valley Road.
The 158-acre site borders the freeway between Dove Valley Road and Sonoran Desert Drive, and the northern portion of the land is currently zoned S-1 (farm or ranch), which necessitates the rezoning process to allow for both commercial and higher-density residential developments.
Earlier this year, Valley Vibe reported that Vestar had an application pending with the Arizona State Land Department for this parcel, however working with the City of Phoenix regarding infrastructure and rezoning is required before the developer can formally submit a rezoning application and before the state will agree to put the land to auction. The two anchor retailers are designed to be 206,000 square feet and the other at almost 177,000 square feet.
Early plans depict a commercial/retail center with pad sites for future end users.
A 10-foot multi-use trail along the west side of Skunk Creek Wash and along the south side of Dove Valley Road is required to be constructed by the developer at the time of development. The developer would also be responsible for all streets and streetlights within the development, and to allow for necessary right of ways for future interchange developments. A traffic impact analysis is also required.
Per the North Gateway Village Core Plan, the proposed development also lies within the area of a future 110-acre district park, and the city’s parks and recreation department has indicated a regional park is planned in this location.
Additional Retail at I-17 & Carefree Highway
Vestar also has an application with the state on a 127-acre parcel at the southeast corner of the I-17 and Carefree Highway interchange for the future site of a large open-air retail center.
That parcel, however, already contains the necessary zoning required for commercial use. [See “Retail Developer Eyes I-17” Valley Vibe, January 2024].
In a letter to the state land department, the City of Phoenix indicated a long list of stipulations required of the land developer, including the following highlights:
- A completed traffic impact analysis at time of development review to determine appropriate locations for ingress and egress and other accommodations.
- Funding for all roadway improvements and traffic signal infrastructure as required by traffic analysis.
- The extension of North Valley Parkway/connection to Carefree Highway to its full width in accordance with the city’s approved street classification map.
- Installation of infrastructure for water/sewer or cost coverage for proportional share.
A timeline has not yet been set for the auctions, however a state land spokesperson told Valley Vibe Vestar indicated it would seek zoning approval by the third quarter of 2025, putting auction timing at mid-quarter 2026 for formal acquisition of the land. Vestar has a portfolio of nearly two dozen shopping centers around the Phoenix metro area, including Desert Ridge Marketplace, Happy Valley Towne Center and Lake Pleasant Towne Center.