Tempe approves seven-story First and Farmer mixed-use project with 200 units, 20 affordable, despite density concerns
TEMPE, ARIZONA — January 14, 2022

Tempe approves seven-story First and Farmer mixed-use project with 200 units, 20 affordable, despite density concerns

City Council approved workforce housing innovation, historic property protections, crisis intervention services, and multiple development agreements while managing controversies over density, parking disputes, and tax incentives.


Downtown Density Showdown: Tempe Approves First and Farmer Mixed-Use Project Amid Neighborhood Backlash, Dwell Workforce Housing Deferred

On January 13, 2022, Tempe City Council voted to approve a controversial seven-story, 200-unit residential complex at First and Farmer Avenue after the developer agreed to sweeping neighborhood concessions including $100,000 for traffic-calming measures and restricted construction access to protect the adjacent Riverside neighborhood. The 6–1 vote—with Councilmember Arredondo Savage dissenting—came hours after the same council heard passionate testimony about a smaller, 129-unit workforce housing project that faced even steeper density objections, illustrating Tempe's struggle to balance housing supply, affordability, and neighborhood character preservation.

The meeting also produced a unanimous 7–0 approval of a city-initiated upzoning resolution that was swiftly amended to exclude all historic properties, approved a crisis intervention services partnership, and held first hearings on three other significant land-use items scheduled for February 10 final votes.

Key Speeches

On First and Farmer affordable housing:

"This is the kind of project that we want to see and it's kind of public engagement that you hope for with the developer. I have to salute you Darren and Sam; I know that sometimes the process was difficult because people care about their neighborhoods as they should, but you got involved very early in the process even I think before you approach community development to talk to the neighbors. While they didn't ultimately come and support and do a rah-rah support of the project, they negotiated with you in good faith and got some agreements and though they weren't able to come to endorse the project you honored those commitments which you didn't have to, but you honor those commitments." — Councilmember Arlene Chin

On density and housing shortage:

"For every one apartment that people are looking for in this state there are 20 people who are looking to apply to get into that apartment. We have more and more people living in apartments these days. There are more and more people frankly deferring buying a home. We have a major housing shortage frankly in this state, we have it in Tempe, we have it in the state. We need 11, 12 thousand more units of affordable housing by the time we get to 2040 just to keep pace with current demand." — Mayor Corey D Woods

On workforce housing by design:

"The missing middle problem is not just in downtown Tempe, it's really all across the valley. We can't do it all, and this missing middle problem is really all across the valley. My hope is Mayor that we do get the word out and that we only have 129 units here, it's a relatively small complex. I hope it does fill up with these sorts of folks and we get the opportunity to do a few more of these." — Steve Betts, Halualoa Companies

On neighborhood concerns:

"I don't want to do that over the promise that I believe has been made to the neighboring residents. The General Plan for 2040 which included a buffer zone to really kind of the stairstep down from the urban core the high density into medium density and then to low density into the neighborhood and that had always and as long as I've been on and been around and know this conversation it has really been all about west of Farmer. When we go from 25 dwelling units per acre which basically means has to do with you know the density the people that are inside and then going from 25 going to 63, I mean that's like more than double what I believe we've promised our residents and our adjacent neighborhood." — Councilmember Arredondo Savage, on Dwell project

Timeline

First and Farmer (Item 7C3)

Dwell Workforce Housing (Item 7B2)

City-Initiated Upzoning Resolution (Item 7A4)

Generations Medical Center PAD Amendment (Item 7C1)

Carvana Headquarters Development Agreement Amendment (Item 7C2)

Crisis Intervention Services (Item 6C9)

Emergency Non-Congregate Shelter (Item 6C10)

Opposition

Dwell Project (129-unit workforce housing):

Number of speakers against: 1 (Philip Yates, neighborhood resident)

Main concerns:

  1. Density of 63 DUA more than double promised General Plan 25 DUA buffer zone
  2. General Plan 2040 neighborhood-approved stair-stepping down from urban core violated
  3. Existing affordable single-family housing stock will be displaced by higher rents
  4. Development creep precedent into adjacent neighborhoods if exception granted
  5. Request for mix adjustment (more 2-bedrooms) to reduce density while maintaining affordability
  6. Project viability calculations and economic justification for higher density questioned

Most compelling argument: Councilmember Arredondo Savage's concern that residents voted on General Plan 2040 specifically to protect neighborhood character through density buffers; approving 63 DUA vs. 25 DUA promised sets precedent for future exceptions and breaks covenant with community

Organized groups: Riverside Neighborhood Association (implied; Arredondo Savage referenced neighbor discussions)

First and Farmer Project (200-unit mixed-use):

Number of speakers against: 2 (Janet Darcy and Meryl Darcy, Riverside neighborhood residents)

Main concerns:

  1. Seven-story height overshadows and encroaches on smaller residential area
  2. Project incompatible with neighborhood character despite "nice" design
  3. Council campaign promises to protect neighborhoods allegedly broken
  4. Loss of sunrise/sunset due to building mass and height
  5. Insufficient affordable housing component (20 units only) does not justify zoning change and General Plan amendment
  6. Public subsidies and GIBLET incentives (five 8-year abatements) unjustified for luxury development
  7. Vacant retail precedent (existing mixed-use ground floors unoccupied) suggests commercial space unsustainable
  8. Rents of $1,800–$2,000 for one-bedroom (2.50+ per sq ft) compared unfavorably to New York Central Park area despite Tempe's lower job market
  9. Traffic and parking congestion unmanageable despite reduced parking requirements; surrounding four Farmer Arts projects and e-scooters compound pedestrian/motorist hazards
  10. City should zone more land throughout city and lower permit costs to enable distributed affordable housing rather than concentrated density in buffer zone
  11. Campaign promises questioned; threat of voter reprisal

Most compelling argument: Meryl Darcy's assertion that 20 affordable units (out of 200 total = 10%) does not constitute sufficient "public benefit" to justify three structural requirements (zoning change, general plan amendment, subsidies) and that developer is utilizing GIBLET incentives to make project economically viable—shifting tax burden to residents while capturing private profit

Organized groups: Coalition action (case action fund representative Josh Wells spoke against GIBLET subsidy during Item 7B4 public comment; no organized opposition testimony during First and Farmer hearing)

Support

Dwell Project:

Number of speakers in favor: 0 formal public comment (but internally expressed)

Key council supporters and arguments:

First and Farmer Project:

Number of speakers in favor: 0 formal public comment opposing, though implicit in council votes

Key council supporters and arguments:

Project Details

Dwell Mixed-Use Workforce Housing

First and Farmer Mixed-Use Development

Generations Medical Center PAD Amendment

Carvana Headquarters Campus

Vote Breakdown

Item 7A4 – City-Initiated Upzoning (with amendments):

Item 6C9 – Crisis Intervention Services Agreement:

Item 6C10 – Emergency Non-Congregate Shelter:

Item 7C1 – Generations Medical Center PAD Amendment:

Item 7C2 – Carvana Development Agreement Amendment:

Item 7C3 – First and Farmer General Plan Density Map Amendment:

Item 7C3 – First and Farmer Zoning Map Amendment, PAD, Development Plan Review:

Outcome & Next Steps

Item 7A4 (City-Initiated Upzoning): Approved 7–0 with two amendments: (1) exclusion of all historic properties (THPR, HE, NRHP, NRHE, TCP designations); (2) sunset/review provision requiring council reconsideration by end of calendar year 2022. City may now initiate rezoning for slum/blight remediation without property owner application, subject to full public process (neighborhood meeting, planning commission hearing, two council hearings).

Item 6C9 (Crisis Intervention Services): Approved 7–0. Effective immediately; partnership with Crisis Response Network (Solari) begins dispatch of crisis intervention responders for mental health and welfare calls, reducing police response burden. No implementation timeline stated.

Item 6C10 (Emergency Shelter): Approved 7–0. One-year agreement with Super 8 Tempe ASU effective immediately, providing 50 non-congregate beds. Combined with existing 40 Roadway beds and 62 congregate beds, totals 152 shelter units.

Item 7C1 (Generations Medical Center PAD Amendment): Approved 6–0 (Randy Keating absent). Effective immediately. Parking requirement reduced from 189 to 107 spaces. Council stipulation on record: approval impacts only parking, not lot lines, property ownership, or litigation. Variance appeal dismissal encouraged if parties reach settlement; no council action to force dismissal.

Item 7C2 (Carvana Development Agreement): Approved 6–1 (Cuba voting no). Effective upon execution. First Street realignment and improvements authorized; city to verify construction costs and receive refunds if costs less than purchase price. EV charging and solar-ready infrastructure to proceed per design; solar deployment timeline open. No firm deadline stated for solar deployment.

Item 7C3 (First and Farmer): Approved 6–1 on both votes (General Plan amendment and Zoning/PAD/DPR). Effective upon execution. Project may proceed to site plan and building permit phase following approval of stipulations: $100,000 speed cushion fund (remitted before permits), $15,000 permit parking fund, neighborhood-approved construction access plan, commercial artwork, landscape maintenance. No further city council approval required unless major modifications occur.

Item 7B2 (Dwell Workforce Housing): Continued to February 10, 2022 for second hearing and final vote. No decision made. Applicant and council agreed to explore density reduction options (two-bedroom unit mix) to bring DUA closer to General Plan 25 DUA target while maintaining affordability; outcome of