'Car-lite' housing eyed for troubled downtown site

Apr. 8—A company famous for creating a "car-free" community in Tempe moved a step further in its bid to create a "car-lite" development at Mesa's notorious Site 17.

Culdesac, a start-up devoted to walkable communities, proposes to build a mixed-use development on city-owned land at the southwest corner of Mesa and University Drive with up to 1,000 residential units and between 25,000 and 50,000 square feet of retail space.

City Council last week approved a memorandum of understanding between the city and Culdesac that kicks off final negotiations to hammer out details of a development agreement for a site that has sat vacant for over three decades. Culdesac's proposal for housing includes a mix of apartments and townhomes.

The outline of the deal so far includes the city supporting a steep reduction in the typical number of parking spaces for a residential project — only 800 spots total. It's a small figure, but not as radical as the company's Tempe development, which has no parking for residents.

Nevertheless, the plan also echoes a trend that the City of Tempe has signed off on for several big downtown high-rises approved in recent months.

Downtown Tempe is building a walkable core. Those who live or visit now find just about everything they need within a five-block walk. There also are the Tempe streetcar as well as several stops along the Metro light rail downtown, Orbit circulator buses, plus Uber, Lyft, Waymo and bicycling options to move people.

Recently, the Tempe City Council approved a plan 89 parking stalls calling for 13-story, 239-unit apartment building.

The Mesa project would be the company's third development. Downtown Transformation Manager Jeff McVay estimated a 10-year build out in three phases.

"This is a great brand," Mayor John Giles said of Site 17's latest suitor. "Culdesac is very, very successful in Tempe and ... this is a feather in our cap."

He added that the company was "known for being high quality — known for being innovative."

Culdesac beat out one other applicant as the council's preferred partner in October. The company's Tempe project has generated a lot of buzz in the national media, but Site 17 will offer some different challenges from Tempe.

For one, it's further from light rail than Culdesac's Tempe location, which is adjacent to a station.

The 25-acre Site 17 has been a graveyard of broken dreams for numerous developers for over 30 years as one proposal after another has gone by the wayside.

There's also a legacy of hurt and distrust connected with the site as the city's acquisition of the land in the 1990s displaced a working class and predominantly Latino neighborhood of single-family homes. Some of the acquisitions involved the use of eminent domain.

The city bought up the land in the name of economic development and revitalization, but it's so far generated no returns for the community.

Last year, a proposal by Miravista Holdings for a mixed-use residential development with eight-story buildings in Site 17 fizzled out, leading to a new Request for Proposals in August.

Mesa leaders want to see the site turn a page and expressed excitement for Culdesac, but the discussion before the 5-1 vote to approve the agreement revealed some potential sticking points to a final deal.

Councilman Mark Freeman reiterated that he was uncomfortable with the significant parking reduction envisioned for Culdesac — fewer than one parking space per unit.

"I think we're gonna have a parking issue. I just feel it in my bone," he said.

Freeman also thought the city should do another round of neighborhood engagement before moving forward with a new project. It's been years since the last public meetings about redevelopment on the site.

In public comments, Mesa architect Tim Boyle echoed Freeman's concerns about parking. He pointed out that Site 17 is a third of a mile or more from the nearest light rail.

Boyle, a former planning and zoning board member, questioned how many residents would choose to live car-free with Arizona's hot summers and worried about the consequences of the development being underparked.

"What we've noticed in our developments, when people don't have enough parking, they park elsewhere," he said.

Boyle and some council members also expressed a desire to ensure the project includes for-sale housing.

Culdesac's concept includes for-sale townhomes in phase 2, but city staff said the company would have the final say over renting or selling based on the results of a market study.

The current plan for Culdesac Mesa envisions "multi-modal" infrastructure on the site to help connect residents with the light rail and other transportation systems and alleviate demand for car travel.

There was talk in a study session of exploring the use of shuttles to increase connections between Site 17 and the rest of downtown. Infrastructure might also include an e-bike or scooter charging hub. Culdesac's founder Ryan Johnson is an e-bike evangelist who says he owns over 70 of them.

Downtown District 4 Councilwoman Jenn Duff defended the parking reductions for Culdesac. She argued that downtown development is intended to be more public transit-oriented and walkable than other parts of Mesa.

Duff said Mesa offers many different lifestyles, and prospective residents looking at downtown Mesa are interested in a car-lite lifestyle.

"We need to centralize where we park (downtown)," she said. "It's a huge improvement in the quality of life when we're people-oriented" instead of car-oriented.

But the parking question is probably not going away: Councilwoman Julie Spilsbury said she was excited for the Culdesac project but seconded Freeman's concerns about parking.

She has been vocal in advocating for providing ample parking in downtown, but she favored moving forward with the agreement so the city could start the negotiation process.