Developers can now raze a popular Tempe apartment complex, despite controversy

Developers will raze an apartment complex in northern Tempe and build a new, taller one, following a unanimous approval by the city council late last month over the objections of existing tenants.

ColRich, the owner of Scottsdale Gateway Apartments at Scottsdale and McKellips roads in Tempe, plans to build a taller, denser building with ground-floor retail and other commercial space on the site of the existing apartments. The process will take years, Wendy Ridell, attorney for ColRich, said, with the earliest phase expected to start in 2028.

The existing apartment complex has 487 units and buildings on the site reach two stories, according to real estate database Vizzda. The proposed complex, called Tempe Gateway, is planned to have 910 units and climb to five stories in some parts.

The proposal drew opposition, including from current residents of Scottsdale Gateway, who said they like their home and don’t want to have to move or see the site redeveloped. Ken Jacobsen, who has lived in the apartment complex for more than 20 years, said he chose to live in the apartment and run his small business from there because he enjoyed the location and the amenities.

Jacobsen said the proposal should be treated differently than a new development on a vacant site because it meant people would need to move out of their homes.

“This isn’t an empty lot, this isn’t a failed strip mall,” he said at the council meeting.

In May, when the proposal was before the city’s Development Review Commission, Jacobsen said he did not believe the plan meshed with the city’s newly approved general plan, because some of the state goals in the plan include preserving existing affordable housing while creating new housing opportunities.

However, Riddell pointed out at the meeting, the plan does allow for the higher density ColRich is seeking in that area of the city, and the proposal does not need to amend the general plan.

Several residents of the neighborhood around Scottsdale Gateway spoke at the meeting, praising ColRich’s collaborative approach and willingness to meet with neighbors and discuss their concerns.

Scottsdale Gateway’s rent is not subsidized in any way, and rents are based on the market rate, which Riddell said would also be the case for the redeveloped apartment.

At the meeting, Riddell said ColRich has been sensitive to the needs of the residents, including giving years of notice before any construction is planned to happen.

In an email, she said the company has also updated its relocation assistance plan to provide up to $500 of relocation cost assistance per eligible unit for residents who have lived in the complex for one year at the time the notice of the rezone was provided. Previous plans, which are no longer valid, had required a resident to have lived in the complex for five years to qualify.

The project is planned to be completed in three phases, with about three years between each phase. If they choose, Tempe Gateway residents could relocate to another phase of the complex or into another complex ColRich owns. Returning residents of the complex will also get comparable rent on a per-square-foot basis, she said.

Ridell said she and the Tempe City Attorney’s office worked on the relocation plan, and if ColRich does not comply with the relocation plan, the city will not issue permits for the redevelopment. The company is also planning to contribute 20% of the cost of its permitting fees to Tempe’s “Hometown for All” program to create more affordable housing.

Reach the reporter at cvanek@arizonarepublic.com . Follow her on X, formerly Twitter @CorinaVanek .

This article originally appeared on Arizona Republic: Developers can now raze a popular Tempe apartment complex, despite controversy