Controversial Laveen development Gila Foothills moves forward with car dealers, hospital

A hotly contested plan to bring an auto mall, hospital, resort and thousands of housing units to Laveen took another step forward Thursday night, gaining a recommendation of approval from the Phoenix Planning Commission.

The project, called Gila Foothills, is planned for a large site near Estrella Drive and 51st Avenue. The site is mostly vacant and stretches to the base of South Mountain Park. The proposal had been contentious from the beginning, but both the developer and neighbors who have been vocal about the plan said at the meeting they had mostly come to a compromise that appeased both sides.

Members of the public and the development team publicly thanked one another for the collaborative effort that had been made, despite some remaining disagreement.

The one remaining sticking point between the developer and the community was the density of the proposed housing.

A plan that was approved by the Laveen Village Planning Committee, an advisory body that reviews neighborhood issues, would have allowed a maximum of 1,700 dwelling units on the site. Those types of dwelling units could include almost any type of housing, including traditional apartments, single-family homes for-sale, single-family rentals.

However, the developer requested allowing a total of 2,200 units. Wendy Riddell, an attorney representing the developer, said 500 of the units would be allowed on the condition that the hospital be built.

The commission sided with the developer, voting 6-2 to allow the additional housing units. The project moves forward in the process with a recommendation of approval, but the Phoenix City Council will have the final say at a future meeting.

Commissioner Lisa Perez, who voted against the additional units, said she wanted to respect the work that the Village Planning Committee had done, and said when the village makes a recommendation, they need to “stay true to what was negotiated at the village.”

Riddell said with the current zoning allowances on the site, more than 3,000 housing units could be built.

However, that zoning spans the entirety of the site, nearly 300 acres. With over 100 acres in the proposed development including the auto mall, hospital and resort, the allowance of 2,200 units means the development would be much denser, with a large number of units allowed on less expansive land.

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Locals appreciate compromise, still decry density

John Bzdel, a resident who lives near the proposed development, said he was grateful for the compromises, which included adjusting the plan to allow 40 lots of lower-density, single-family homes in an area that bordered an existing neighborhood.

Other changes that were made included lowering the overall height of the proposed hospital from 150 feet to 120 feet and moving the location of the hospital as far as possible from the neighborhood. The heights of some of the proposed apartment buildings also were lowered, especially closer to the existing neighborhoods. “Step backs” to gradually increase the height of the buildings as they get farther from existing housing were also added to the plan.

Bzdel still opposed the additional density and said Laveen has had thousands of units recently approved or begin construction, which will address the need for housing. According to data compiled by Dan Penton, a Laveen neighborhood advocate, nearly 7,000 housing units have been approved in Laveen that have not yet started construction.

Linda Abegg, the chair of the Laveen Village Planning Committee, said much of the land alongside the Loop 202 freeway has already been rezoned for apartments, and said the Village Planning Committee has also been tasked with preserving some land for commercial uses.

Abegg, and two other members of the Village Planning Committee who spoke, Stephanie Hurd and Patrick Nasser-Taylor, said they supported the development without the 500 additional units.

Hospital, resort in the works

About 50 acres nearest to South Mountain will be set aside for the resort, Riddell said.

At a past Laveen Village Planning Committee meeting, Phoenix's Economic Development Director Chris Mackay said her office has been pitching the site to resort developers. At the time she said residents could expect something comparable to J.W. Marriott Desert Ridge or Camelback Inn.

Laveen is underserved when it comes to health care, Riddell said. She joked that because of the lack of health care providers, hospital beds and proximity to services in Laveen compared to the rest of the state, a person is better served “having a medical emergency in Cornville than they are in Laveen right now.”

For most Laveen residents, the nearest Level 1 trauma center is roughly 11 miles away at Banner-University Medical Center, north of downtown Phoenix.

Auto dealership touted for tax revenue

Riddell said auto dealerships are among the largest tax generators that a city can have.

The Laveen project is expected to have eight to 10 dealerships, and all the dealers must have at least one line of alternative fuel vehicles, she said. Once the auto mall is open, Riddell said it is expected to generate $52 million in taxes annually.

Riddell said the team is also working on a development agreement with the city to ensure that a portion of that money would remain in Laveen.

Auto dealerships have restrictions that prevent them from being built within a 10-mile radius of one another, Riddell said. There are only two areas of Phoenix, including the proposed spot in Laveen, that could accommodate dealerships with that restriction. The other is in north Phoenix.

However, land on the Gila River Indian Community, which is directly across the freeway from the proposed development, also fits that parameter, Riddell said. If Phoenix were to deny the development, the dealerships could be developed on the reservation, and Phoenix would see none of the tax benefit, she said.

Reach the reporter at cvanek@arizonarepublic.com. Follow her on X, formerly Twitter: @CorinaVanek.

This article originally appeared on Arizona Republic: Nearly 300-acre Laveen development with auto mall moving forward