Developers propose arena, retail for site

A $50 million arena and events center is one of two development proposals submitted for city-owned land east of SkySong.

The other is a $25 million shopping center of 200,000 square feet.

Both proposals would combine a 3.7-acre city-owned parcel with 14.29 acres now occupied by the largely vacant Los Arcos Crossing shopping center.

The two development proposals were submitted last week in response to a city offer to lease or sell the vacant land at 74th and Culver streets, just south of McDowell Road.

"We were not expecting a huge number of proposals," said Mark Hunsberger, Scottsdale revitalization specialist.

The city has had little time to evaluate the two proposals, which are vastly different, he said.

The public can review the proposals at two open houses on Oct. 25 at SkySong, the ASU Scottsdale Innovation Center, at the southeastern corner of Scottsdale and McDowell roads.

Global Entertainment Corp., based in Tempe, is proposing a 5,500-seat arena and events center that it says could attract about 180 activities and 750,000 visitors annually.

It would be designed for the staging of concerts, circuses, rodeos, trade shows, conventions and sporting events, including high school championships.

The arena would be similar to facilities that Global developed in Prescott Valley - the $35 million Tim's Toyota Center. It developed another similar venue in Allen, Texas.

Allstate Life Insurance Co., which invested in bonds to build the Prescott Valley event center, is suing Global, Prescott Valley and other involved entities alleging the defendants misrepresented attendance and cost projections for the arena.

Allstate's suit in U.S. District Court in Arizona claims that a 2001 study showed the arena could draw about 78 events and 202,500 attendees annually. But the defendants used a more optimistic projection of 133 events and 486,000 attendees, with $5.8 million in revenue the first year, which Allstate contends were fraudulently inflated.

Global officials did not return calls seeking comment.

The company's proposal calls for Scottsdale to spend $82.4 million for on- and off-site improvements for the events center. The building cost is pegged at $50 million.

Global touts the arena, which the city would own, as an "anchor project" for redevelopment of south Scottsdale that would spur private investment in the area.

"This (proposal) assumes no ongoing subsidy for the event-center operations, although that assumption may change," Global said in its development plan.

The North American Development Group, which is headquartered in Ontario, Canada, and has a location in Scottsdale, submitted the other proposal for the adjoining sites near 74th Street and McDowell Road.

The company, which has developed shopping centers in Canada and the United States over the past 30 years, said its proposal would not involve any costs to the city.

Previous projects completed by North American include the McDowell Mountain Marketplace, southwest of Thompson Peak Parkway and Bell Road, that is anchored by Bashas' and the Lakeview Village Center at Morrison Ranch in Gilbert.

by Peter Corbett The Arizona Republic Oct. 9, 2010 12:00 AM




Developers propose arena, retail for site