The city of Tempe has taken the next steps to finding a developer to build a mixed-use development including commercial space and apartments in the parking lot next to the city’s historic Danelle Plaza.

More than a year ago, the city of Tempe asked for proposals to add density to the already-lively Danelle Plaza, near Southern and Mill Avenues and home to popular businesses such as Yucca Tap Room, Rocket A Go-Go and Cervantes Mexican Food.

Despite those retail successes in the plaza, other parcels in the strip center and surrounding area have been abandoned or never developed. The goal was to keep a local feel to the area, while adding new amenities, especially housing.

In September, Tempe City Council agreed to start negotiating with a team of developers that has presented two separate visions of the 3.14-acre city-owned site in the center of the plaza. One vision calls for the whole center to be placed under a single owner – right now several owners own parts of the plaza. With a single ownership group, the whole site could be redeveloped. If not all the owners agree to sell, there is another proposal that focuses on adding new housing and redeveloping the stores in the center where owners want to participate.

The development teams are made up of several entities that already have ownership inside Danelle Plaza. The teams includes Guina Affiliated Developers, Hu Commercial Properties II LLC, Yucca Rental Properties LLC and Desert Viking Development LLC. Hu Commercial Properties II is owned by Rodney Hu, second-generation owner of Yucca Tap Room.