09082025 MUSS MEETING MINUTES FINAL.PDF
Extracted text (via pymupdf)
8337 characters
Minutes of the Mixed-Use Space Council Subcommittee meeting held on Sep. 8, 2025, 1 p.m., Hybrid Meeting- Tempe City Hall, 31 E. 5th St. and virtually through Microsoft Teams. Members Present: Councilmember Arlene Chin – Chair Mayor Corey Woods – Member Councilmember Nikki Amberg – Member City Staff Present: Ty Lee, Council Assistant Eric Anderson, City Attorney Tanya Chavez, Mayor & Council Relations Director Kimberly Sotelo, Senior Management Assistant to the City Manager’s Office Ryan Levesque, Deputy Director, Community Development Jeff Tamulevich, Director, Community Development Taylor Moran, Program Manager, Economic Development Darrell Duty, Assistant Fire Chief Keith Burke, Deputy City Manager Mariana Pena, Mayor’s Assistant Joshua Rutherford, Special Project Administrator, Economic Development Greg Ruiz, Interim Chief Deputy City Manager Lisette Camacho, Deputy City Manager/CFO Eric Iwersen, Director, Transportation & Sustainability Melissa Westbrook, Council Assistant Keaton Hill, Council Assistant Laura Calder, Financial Services Director Quincy Carrillo, Council Assistant Parrish Spisz, Council Assistant Shauna Warner, Director, Neighborhood Services Mike Baxley, Deputy Director, Community Development Tim Burch, Director, CHHS Velicia McMillan Humes, Director, Diversity, Equity & Inclusion Office Rebecca Strisko, Director, Human Resources April Kroner, Deputy Director, Economic Development Attendees Present: Paul Kent, Resident, University Park Neighborhood Association Minutes Mixed-Use Space Council Subcommittee Sep. 8, 2025 Darin Sender, Attorney at Sender Associates Anne Till, Resident Phil Amorosi, Resident, Co-Chair of Citizens for a Vibrant Apache Corridor Charles Goode, Developer Agenda Item 1 – Call to order Councilmember Chin called the meeting to order at 1 p.m. Agenda Item 2 – Public appearances No public appearances. Agenda Item 3 – Presentation and overview of mixed-use zoning and the status of retail spaces Community Development Director, Jeff Tamulevich gave an introduction of the subject and addressed key concerns of current vacancies in mixed-use developments and strategies to prevent a recurrence of the problem in new developments. Jeff turned over the presentation to Deputy Community Development Director, Ryan Leveque and Deputy Economic Development Director April Kroner for an update on the following: • Current mixed-use zoning requirements and ground-floor retail activation in a Transportation Overlay District (TOD). • 12 mixed-use properties that currently have varying levels of vacancy. Staff plans on reaching out to the property owners to determine how long they have been trying to market their vacancies. • Approaches to address retail activation by requiring the developer to prepare gray shell space at the time of initial building permits for retail tenants. Ryan went on to mention considerations for future development by stating that occupancy conditions be implemented to curb high vacancy rates. Councilmember Amberg stated that the City should have a condition that says if a developer has an existing property with vacant retail, then approval for another development will be withheld until existing vacancies are leased to a certain percentage. Ryan suggested having early conversations could be had with the developer to discuss end goals to fill the space. If the goal is residential, then the developer needs to bring on a sub to manage filling the retail space. Agenda Item 4 – Stakeholder discussion Councilmember Chin said she will seek input from attendees, noting that no answer or solution would be reached today. She emphasized the challenge of having vacant space in walkable, high-density areas and explained her understanding of the problem is that financing and expertise are difficult for developers; some loans are for residential, and some developers do not have the expertise to market and manage retail space. Councilmember Chin asked if we could get the dates of when properties were built to help provide context for how long the properties have been vacant. An example was raised about Culdesac, with its plant shop, clay shop, and restaurant. The site is full of retail and demonstrates how retail in high-density areas is important to residents. Councilmember Chin noted that Culdesac is different because its retail is separated from residential units. Councilmember Amberg requests that staff not only determine how long properties have been vacant but also engage developers to learn what marketing efforts have been made, whether the City can assist, and if nearby residents have been asked what types of businesses they would like to see. She also remarked on the vibrancy of Culdesac, with many people visiting and walking around during the middle of the week. April Kroner responded that the Economic Development team should be meeting with the developers or broker teams to understand what they have been doing to market their spaces and explore how the City can help. It was noted that this approach is part of the ongoing strategy, with Culdesac serving as an example of how attention to amenities creates a strong urban core. Councilmember Chin asked if some of the developers on the list would be interested in joining the discussion to better understand community needs and share their challenges in filling long- vacant spaces. It was emphasized that involving developers is important since property ownership of the buildings often changes. Feedback from developers varied when information about the Council Subcommittee was shared. In past projects, not all locations proved viable for retail, underscoring the need to identify cores where commercial uses make sense. There was also caution that requiring retail through Certificates of Occupancy could result in only short-term tenants. Councilmember Amberg said that she wants to believe developers when they say they only have expertise in residential buildings. However, she noted that the Mayor, despite not being a professional in business recruitment, works to attract business. Developers with greater resources should be able to hire a professional to do the same if that is not their area of expertise. Councilmember Chin asked if there are any checks or repercussions for properties that remain vacant? Staff responded that there are none. Councilmember Chin said she is hearing that might be an option and noted that she has also heard similar concerns from residents. It was pointed out that the last economic development survey was conducted over 12 years ago, and provided useful insights into income levels, resident needs, and business demand around the TOD. A new survey could refresh this data, help identify current needs, and support exploration of Community Benefit Agreement (CBA). The need for mixed-use design to evolve was raised, with particular focus on accommodating rideshare and delivery services. Questions were posed about whether existing vacant spaces could be redesigned for these uses and whether flexible rent structures tied to occupancy would be legally permissible. The importance of engaging neighbors early in the process was highlighted as a way to better align development with community needs. It was noted that the difficulty of filling commercial spaces is often underestimated, and that early-stage discussions of community needs are needed to improve long-term success. Mayor Woods commented on the value of smaller retail spaces that local businesses can afford, which aligns with what our residents want. Agenda Item 5 – Future agenda items Councilmember Chin suggested adding developers to the discussion on vacant spaces and proposed considering nonprofits as potential tenants. She noted there was consensus to continue the conversation. There was a recommendation to discuss amending the TOD to clarify expectations for developers. Agenda Item 6 – Adjourn Councilmember Chin adjourned the meeting at 2:08 p.m. Prepared by: Ty Lee, Council Assistant, (480) 858-2260 Reviewed by: Tanya Chavez, Mayor and Council Relations Director, (480) 858-2215