PHOENIX

Plans scrapped for housing project near Roosevelt Row

Brenna Goth
The Republic | azcentral.com
  • Plans to turn the Knipe House into a brewery and build apartments off of Roosevelt Row are no more
  • The developer never broke ground and couldn't meet its obligations, a city official said
  • Some community leaders and business owners opposed the housing for low-income seniors

Plans are off for "The Row," a controversial downtown housing and renovation project near the Roosevelt Row arts district, after the developer and city terminated their agreement.

Roosevelt Housing Associates agreed with the city Dec. 23 to scrap the development, which proposed building 56 to 75 apartment units off of Roosevelt Row and converting the historic Knipe House into a restaurant and craft brewery.

The city owns the house and vacant land on Second Street between Roosevelt and Portland Streets.

Under the contract, the developer had to start work by Dec. 31 or ask the city for an extension, said Christine Mackay, Phoenix Community and Economic Development Director.

Roosevelt Housing Associates decided it couldn't meet the obligations, in part because developers did not receive federal tax credits for the residential part of the project, Mackay said. The developer never started construction and the land never left city ownership.

"Redevelopment of land is incredibly expensive," Mackay said.

Roosevelt Housing Associates entered the agreement last year after being selected by the city out of several groups that submitted development plans. The developer did not respond Friday to requests for comment.

Some community leaders said the canceled plans mean a fresh start for the contentious residential development, which would have reserved about 80 percent of the units for low-income residents ages 55 and older.

About 1,500 people signed a petition last year against the project, arguing age-restricted housing would not fit the character of an often loud and crowded arts district.

"Overall, I would characterize this as a good opportunity for the city and community to come together over a solution," said Kevin Rille, president of the Evans Churchill Community Association.

But the contract termination also means the Knipe House, built in 1909 by Leighton G. Knipe, will remain vacant for now. Vandals have repeatedly targeted the house, most recently with an attempted break-in late last month.

"The longer structures remain vacant, the more susceptible they are to loss," said Greg Esser, vice president of the Roosevelt Row Community Development Corporation board. "We have seen that repeatedly."

Roosevelt Housing Associates would have invested $1.1 million to convert the house into a business with completion in 2016. The housing portion of the development was to be completed by 2018.

Now, the city will again put together a team, meet with the community and solicit new proposals for the site, Mackay said.

"Utmost in our minds is the preservation of that home," she said. "We'll work very quickly."