In response to the changing market and need for additional housing in the area, Developer USAA is proposing to develop 1,400 more multi-family units on a portion of its mixed-use development in Norterra consisting of commercial, hotel, multi-family and single-family residential uses.
The amendment, which requires City of Phoenix approval, is a request for an additional 1,100 multi-family dwelling units on the northwest corner of the site along I-17 south of Jomax Road and west of Norterra Parkway, as well as 300 more more multi-family units near Union Street, east of Norterra Parkway and north of Happy Valley Road. According to the developer, the change within the Union Street vicinity, expected to serve as the pedestrian-friendly heart of the development, will also reduce the need for parking by 25 percent, following completion of a recent traffic analysis.
Also included in the amendment to allow for the additional residential is a change in the approved number dwelling units from 50 per acre to 120 units per acre, a change to allow the building height to increase to 73.5 feet where the additional 1,100 units are proposed, and an increase in the number of hotel rooms from 150 to a maximum of 275.
The shift is fueled by the future build out of a 3,500-acre master-planned employment hub, west of I-17 and north of Loop 303, which is also home to Taiwan Semiconductor Manufacturing Company’s (TSMC) silicon chip plant under construction.
“The area has significantly changed in the last seven years, predominantly with the TSMC development… that has completely changed what the demand is in the area for residential and also hotel,” said Bill Allison, of Withey Morris, representing USAA during a presentation of the proposal in July. “As we’ve gone through the last two years of the pandemic, the demand for office space has changed dramatically as people work from home and there’s not as much demand for office space as when this project was originally approved.”
The proposal passed its first hurdle when it received unanimous approval in July by the Deer Valley Village Planning Committee, an advisory committee to the City of Phoenix. If approved by City Council, the total number of multifamily units allowed within the development would increase to a maximum of 2,300.
As of this writing, 13 letters of opposition had been received, however, only one resident spoke in opposition to the change at the meeting, expressing concern that the area will be impacted by traffic from the increase in dwellers and the decrease in parking would not be beneficial to the businesses that locate in the Union Street area.
Resident and Chairman of the Union Park Liaison Committee, Todd Ciccarelli, spoke in favor of the change and said he appreciated the developer’s willingness to address concerns of nearby residents with regard to added residential dwellings.
“A lot of us are looking forward to what is to come in this development with retail and restaurants because the area needs it. While I can’t speak for everybody, our feeling is we’re not going to attract restaurants and businesses if they’re looking at vacant office space,” he said.
The Phoenix Planning Commission will consider the proposal at its Aug, 4 meeting, and if approved, it is slated to go before City Council in September.