Tempe, AZ – Tempe plans to transform the newly-purchased Food City Plaza in north Tempe into a dynamic housing and shopping hub that brings together mixed-income housing, a grocery store and a police station to meet wide-ranging community needs.

Tempe bought the center as part of its broad Affordable Housing Strategy and Hometown for All initiative, designed to accelerate the growth of housing opportunity in the city. Food City Plaza is one of six projects on the horizon that will significantly expand housing options, including affordable housing options.  

“Our investment in the Food City Plaza represents the ongoing commitment to north Tempe and to creating more housing opportunities for anyone who wants to call our city home,” said Mayor Corey Woods. “We believe this new hub will be transformative and spur even more development in the area.”

Food City Plaza represents a $20 million investment to date through city, county and federal funds.

Last year, Maricopa County awarded the city $10.8 million in American Rescue Plan Act funds to increase affordable housing in north Tempe. Combined with city funds of $8 million, Tempe recently closed on the sale. Earlier this year, Congressman Greg Stanton secured nearly $1.7 million in federal funds to bolster the city’s efforts to add more affordable housing through the Food City Plaza purchase.

“Collaboration between local municipalities is the key to addressing Arizona’s housing crisis,” said Jack Sellers, Chairman of the Maricopa County Board of Supervisors, District 1. “The strong partnership between Maricopa County and the City of Tempe enables us to leverage our combined resources to house residents of diverse socioeconomic backgrounds while protecting Tempe’s vibrant economy. Together, we can ensure Tempe residents have access to safe, affordable, and thriving communities they can call home.”

Rep. Stanton said, “Every family deserves an affordable and safe place to call home. This hub—the third affordable housing project I’ve partnered with the Mayor Woods and the City on in three years—will unlock even more opportunity and investment to north Tempe while helping residents stay in the community they love.”

The 7-acre Food City Plaza project includes:

• Mixed-income housing, including affordable housing. The city plans a minimum of 50% of the total number of units constructed available to those who have an income at or below 80% of AMI (Area Median Income). The total number of units will be determined once the entire mixed-use site is designed.
• A grocery store to meet community needs
• A police station and training facility, pending the outcome of the Nov. 5 bond election

The city will be seeking a development partner for the project. Construction is not expected to begin for more than two years to honor the leases of the existing businesses. Tempe’s Economic Development team continues to meet with each tenant to assist in relocating and provide resources.

“Affordable housing is needed throughout Tempe. It is very much needed for those who work in our city,” said longtime north Tempe resident Kim Gaffney. “Even though our neighborhood on the north end already has affordable housing, most of it is aging. The best communities have a mix of housing options. It promotes tolerance and understanding.”

“This proposed development by the City of Tempe will complement the large market rate density along Scottsdale Road, existing and planned,” she said.

Tempe has prioritized affordable housing and will take a measure to Tempe voters to expand options. On Nov. 5, registered Tempe voters will have the opportunity to decide whether to fund an increased supply of affordable housing through the 2024 Special Bond Election. Question 3 seeks voter authorization to issue and sell general obligation bonds of up to $32 million for this expansion. Learn more in this video and find more information about all three questions at tempe.gov/bond.

In addition to Food City Plaza, five other projects on the horizon will increase housing opportunities.

Apache Central. Tempe is transforming a nearly 8-acre site near Apache Boulevard and Dorsey Lane that includes the Apache Central Center, former location of a Food City, and two adjacent parcels. All three parcels are owned by the city. Tempe is working with Community Development Partners and Juntos Community Developers on a mixed-income project with as many as 400 housing units; a portion of the units will be priced for people with low and moderate incomes. Retail and other amenities will be included.

LaVictoria Commons. Tempe is reimaging a 2.6-acre, city-owned site near Apache Boulevard and Price Road as an innovative housing and community hub with partners Copa Health and Newtown CDC. The development includes 104 affordably-priced apartments, 19 townhomes for sale to income-qualified households and a health clinic open to all residents in Tempe, along with a community room and café.

Tempe Performing Arts Center. Tempe is reviewing developer submittals to repurpose a city-owned property into a high-density, mixed-income and urban mixed-use project. The city is requesting affordable housing to be included in the proposed project to help meet the goals of the city’s Affordable Housing Strategy and Hometown for All initiative.

Hackett House Redevelopment. A Request for Proposal will be issued in early 2025 for this downtown Tempe site, which will include a mid-rise housing project with a workforce housing component and an event space for Tempe Sister Cities to host events.

Tempe Coalition for Affordable Housing (TCAH) parcel. TCAH has purchased vacant land on Apache Boulevard, near McClintock Drive, for future development of approximately 40-50 affordable units. The property was purchased using nearly $3 million in funding that came through Hometown for All. TCAH will be seeking a development partner in the future.

About Hometown for All

The Hometown for All initiative is the driver for the city’s Affordable Housing Strategy. The initiative provides a dedicated funding stream to accelerate the growth of affordable housing to ensure that Tempe has a variety of housing types.

For every new development project built in Tempe, an amount equivalent to 50% of certain permitting fees paid to the city’s general fund goes to support the nonprofit Tempe Coalition for Affordable Housing (TCAH). Those funds are used by TCAH to purchase properties and land and reimagine city-owned parcels. Hometown for All has also spurred new donations from developers to support the city’s work.

Track the progress of Hometown for All on the city’s dashboard. Learn more about Hometown for All at tempe.gov/HometownforAll.

Media contact: Susie Steckner, susie_steckner@tempe.gov or 480-604-6128.