Archive for June 5th, 2009

AZ Central – Plan to renovate Biltmore gets thumbs-up

by Scott Wong – Jun. 4, 2009 04:22 PM
The Arizona Republic

After months of infighting among neighbors, an advisory panel this week overwhelmingly approved a plan to expand and renovate the Arizona Biltmore Resort and Spa in Phoenix.

The Camelback East Village Planning Committee voted 15-1 this week to recommend supporting the $300 million project. The rezoning, which allows for up to 300 new hotel rooms, 44 villas and a 26,000-square-foot spa, still needs approval from the Planning Commission and City Council before construction can begin.

Previous meetings of the homeowners association and village committee have been heated as neighbors voiced concerns that construction would increase traffic and crime in the area. Some feared buildings as tall a six stories would violate their privacy. But Tuesday’s meeting at the Devonshire Senior Center was respectful, without the inflammatory rhetoric and personal attacks of the past.

Those who had been the most vocal opponents of the project, including Jay Swart, said they received assurances from the resort’s zoning attorney Nick Wood and Councilman Sal DiCiccio that outstanding traffic and public-safety issues would be addressed.

“What you did today was allow the revitalization of the Biltmore hotel and the protection of neighborhoods,” DiCiccio, who represents the Biltmore area, told the committee after the vote.

Committee Chairman Ron Passarelli reminded attendees that the vote marked just the first in a series of hurdles for the project.

“This is the beginning of the review process,” he said. “There is room for further review by the city.”

Passarelli said the project had the support of the Arizona Biltmore Estates Village Association, Phoenix Historic Preservation Commission and city planning staff.

The owners of the 24th Street resort – Boston-based Pyramid Advisors, Morgan Stanley and two state teacher retirement funds – are seeking to rejuvenate the historic property, which was built in 1929. In addition to new rooms and villas, plans call for a new restaurant, landscaping, canal walking path and upgrades to the main pool, possibly including a lazy river.

“We really need to keep our crown jewel beautiful,” said 17-year Biltmore homeowner Maria Pomeroy, who supports the project. “It is what attracts everyone to our area, which brings money to our area.”

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AZ Central – Bloomingdale’s, Macy’s pull out of CityNorth

by Michael Clancy – Jun. 5, 2009 12:00 AM
The Arizona Republic

The remaining two department stores announced for the second phase of CityNorth have joined Nordstrom in pulling away, a developer’s spokesman confirmed.

The departures leave Phase 2 with no committed tenants.

CityNorth, located north of Loop 101 at 56th Street in northeast Phoenix, was envisioned as a spectacular new urban core. Fashion Square and numerous other malls in the Valley, is hoping to lure at least one of them to one of its two retail projects on Scottsdale Road north of Loop 101. Palisene and Scottsdale One are 2 miles east of CityNorth.

Originally, Phase 2 was scheduled to open late this year, and subsequent phases were to follow. Related Urban Development, one of the developers of the project’s retail core, envisioned new hotels, plenty of shopping and dining, office space and new residential units filling the 144-acre site just east of Desert Ridge Marketplace.

Bloomingdale’s announced its decision to come to CityNorth in February 2008, and Macy’s followed in May 2008. Both announcements came before the recession effectively shut off credit markets that provide funding for such projects.

Developers hope to renegotiate their agreements with the department stores when the economy recovers. But Westcor, the shopping-center company that operates Scottsdale

“The amount of demand is right for one shopping center,” Westcor Vice President Scott Nelson said. “The last thing you want to do is create two mediocre properties.”

When Nordstrom opted out, Related’s vice president of marketing, Najla Kayyem, said the decision was based on CityNorth’s Phase 2 deadlines.

“We are disappointed that this has not moved forward,” she said, “but we don’t control the capital and financial markets.”

Meanwhile, CityNorth is doing its best to keep Phase 1 active. Bars and restaurants along High Street, the two-block stretch of retail outlets south of Deer Valley Drive and west of 56th Street, appear to be doing well.

Webber Hudson, executive vice president of Related Urban Development, told Women’s Wear Daily that Related is tweaking Phase 1, which opened in November.

“We’re going to do a music venue and comedy venue,” Hudson told the fashion publication in its Monday issue. “That’s what the market wants. We’ll complete Phase 1 as an entertainment district.”

Kayyem says the developer is “close to a large announcement but not there yet.”

“Phase 2 is on the back burner” until the economy recovers, Hudson told Women’s Wear Daily.

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