Phoenix approves development agreement for new office campus, headquarters

Phoenix approves development agreement for new office campus, headquarters

Article Originally Posted by PhoenixBusinessJournal on December 14, 2022

The city of Phoenix gave the green light to a development agreement for a new office complex and company headquarters on Wednesday with no public discussion on the item.

Although the formal developer or company names have not been publicly released, the city passed an agreement unanimously to reimburse an entity called Chevelle Properties LLC up to $5 million for public infrastructure improvements for the project such as street frontage and intersection upgrades, water and sewer main extensions or other regional traffic improvements.

The nearly $200 million project could comprise a 300,000-square-foot office facility built on 32 acres that could also serve as a company's headquarters and bring 1,100 jobs to the region.

The city has not confirmed any potential locations for the project, but earlier this year Chevelle Properties LLC applied for a state land auction for about 35 acres near the southwest corner of Tatum and Mayo boulevards in northern Phoenix.

The auction is scheduled for Dec. 27 for a minimum bid of $29.4 million. State land documents show the company is using the codename "Project Christmas." The site is located in the Desert Ridge area near the Mayo Clinic campus and Desert Ridge Marketplace close to State Route 51 and the Loop 101.

A city report said the office campus and potential headquarters for a company could be one of the first large-scale office employment announcements nationally since the Covid-19 pandemic, which it said signifies a "return to normal business and recovery."

The city plans to reimburse the developer annually through its strategic economic development fund and general fund portion of eligible transaction privilege tax revenue generated from the site for 10 years.