300-Acre Laveen Development with Auto Dealers, Hospital Gets Green Light

Article originally posted on AZ Central on May 17, 2024

A nearly 300-acre development in Laveen had been a symbol of neighborhood activism before it became a testament to compromise between the developer and nearby residents who opposed the plans.

The Phoenix City Council agreed and unanimously approved it.

The Gila Foothills development, located near 51st Avenue and Estrella Drive, includes a wide mix of uses: an auto mall, resort, hospital, for-sale housing and rental housing. It had been the center of major contention between the Laveen community and the developer, the Lines family, a longtime landowner in the area.

The site is within Phoenix’s boundaries but portions of it border unincorporated Maricopa County land. The site sits west of South Mountain Park, east and north of Loop 202 and east and north of the Gila River Indian Community.

Developer, neighbors tout compromises reached

Years of animosity seemed to mostly dissipate by the time the project came before the council for final approval Wednesday, with both sides thanking one another for seeking compromises.

One of the biggest sticking points on the proposal was the density of housing.

The developer sought a total of 2,200 housing units in the project, of which 1,700 could have been built any time. The other 500 were contingent on finalizing a deal with a hospital operator to create a Level 1 trauma center in the project. The neighborhood argued that 1,700 units was enough, with 1,200 to be allowed immediately and the additional 500 to come with the hospital.

An aerial photo shows the land include in the Gila Foothills development planned in Laveen. This photo is facing east.

Wendy Riddell, zoning attorney for the project, and John Bzdel, one of the neighbors who was most critical of the development, both credited Phoenix City Councilwoman Kesha Hodge Washington for creating a plan that would require the developer to “earn” the additional units based on milestones that the community wanted to see.

The new proposal allows for the 1,200 units and allows the additional 500 contingent on the hospital. If the developer delivers at least 15 acres of retail and restaurants, it can develop 250 more housing units. If it designates age-restricted housing for those 55 and older, it could develop 150 units. And if it developed platted, for-sale townhomes, it could add 100 units, reaching the 2,200 it requested.

Phoenix Mayor Kate Gallego said she was not aware of another development with a similar incentive structure but said it could be a model for other developments moving forward to ensure both the neighborhoods and developers can benefit from projects.

As part of the compromise with the neighbors, the developer also agreed to develop single-family homes adjacent to the existing single-family neighborhood, instead of apartments or rental housing.

Bzdel said he was dropping his opposition to the development and was grateful that the development team and city officials have been willing to work with the community.

Neighbor: Auto mall near South Mountain still doesn’t fit

Dan Penton, a Laveen resident and neighborhood advocate, said he was disappointed to see an auto mall planned to close to South Mountain, especially in the year when the South Mountain Preserve is celebrating its 100th anniversary.

Reid Butler, who is representing the Lines family in the development, said in late 2023 that the auto mall would likely be one of the first pieces to begin construction, and said the group had already signed an agreement with a leading dealer of electric vehicles.

At the council meeting Wednesday, Riddell, the zoning attorney, said the auto mall would be as close to the freeway as possible, putting as much space as they could between the car dealerships and the mountain.

Hospital, resort coming

The development will include Laveen’s first Level 1 trauma center, the most advanced level of trauma care.

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

About 50 acres closest to South Mountain has been designated for a resort, as part of the plan. No resort operator has been named for the project yet.

But Chris Mackay, economic development director for Phoenix, said at a Laveen Village Planning Committee meeting in February she has had conversations with three different resort operators interested in the site. Residents could expect something comparable to the J.W. Marriott Desert Ridge or the Camelback Inn, she added.

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