Tempe approves 854-acre Smith Industrial Hub guidelines; defers Market Station affordability debate to October 29

Tempe Approves Smith Innovation Hub Vision but Market-Rate Gateway Project Sparks Affordability Standoff

City Council unanimously adopted development guidelines and a sweeping general plan amendment for the Smith Industrial Innovation Hub tonight, positioning the 854-acre district as the city's flagship transit-oriented, mixed-use neighborhood. Yet the evening revealed a profound fault line: while planners and council members celebrated the hub's emphasis on affordable housing, live-work units, and pedestrian-friendly urban design, the very first residential project proposed for the gateway site—a 310-unit, market-rate apartment complex with rents between $1,450 and $2,350 per month—prompted two council members to question whether the city has already surrendered its core vision before the hub has even been built.

Key Speeches

"The Smith innovation hub addresses housing local housing the inclusion of mixed-use residential development in and around this area aligns with several key priorities of the city to help provide new options for the many workers who commute from outside communities specific housing types recommended are loft style town homes and live work units where appropriate." — Ron Tapscott, Resident Commenter (submitted statement read into record)

"There is an edge to the Smith Hub and it is for higher densities and height of 90 feet at this location... but interior to the hub we want to make it more intimate live work and that is absolutely true." — Donna Kennedy, Economic Development Director

"I'm profoundly disappointed that the very first project that's brought to us you're asking for a lot in terms of zoning changes but in fact what is the public benefit besides putting some properties on the tax rolls... I thought we were taking a new direction with the city of tempe we're really focused on affordable housing." — Council Member QBen

"I really thought of it as being more industrial something different and unique and honestly I don't see anything different and unique about this and I do believe there is some comments... about a 20-minute city and being able to provide housing for people that work in the immediate area well I do kind of wonder you know if that's even really what we're trying to obtain because I think there's some mention of a lot of employment as like service sector positions and I just don't think that they would make enough money to meet those rents." — Council Member Arredondo Savage

"Maybe it's something worth considering that if we could make it taller make it denser it could bring the prices down and maybe have an opportunity for some more public benefit that has been requested by some of my other colleagues." — Vice Mayor Randy Keating

Timeline

Smith Industrial Innovation Hub Development Guidelines (Item 6A3)

• Applicant presentation: Donna Kennedy, Economic Development Director, presented the 854-acre hub guidelines, bounded by McQuintock Drive (west), University Drive (south), Loop 101 (east), and Rio Salado Parkway (north). Guidelines recommend live-work units, townhomes, and loft-style housing with maximum 3–4 stories internally, up to 90 feet along Rio Salado for transit-oriented development density.
• Staff recommendation: Approved by DRC with strong staff support.
• Public comment: One speaker (Ron Tapscott, resident); primary concern that Tempe Market Station contradicts the hub's affordability and arts vision; requested the project be redesigned to align with live-work, mixed-income housing emphasis.
• Council discussion: Jennifer Adams, Garland, and Arredondo Savage asked detailed questions on housing mix strategies, live-work unit occupancy rates, and integration of affordable housing across the hub. Council Member Navarro expressed strong support. Council Member Arredondo Savage flagged concerns about whether live-work units remain a viable product type (noting historical vacancy issues) and whether the city's housing-mix strategy will be achieved through separate developments or mixed-income single projects.
• Vote: Approved 7–0.

General Plan Amendment for Smith Industrial Innovation Hub (Item 6C2)

• Applicant presentation: Donna Kennedy presented a major amendment to General Plan 2040 with land-use and density map changes for the Smith Hub area.
• Staff recommendation: Staff supported; required two-thirds council majority (5 of 7 votes).
• Public comment: None submitted for this specific item (Rod Tapscott's comment on the guidelines also referenced the broader urban vision).
• Council discussion: Mayor Corey D Woods clarified that the urban core master plan had been withdrawn and only the Smith Hub general plan amendment would proceed separately. Council Members acknowledged the substantial staff work and community input incorporated into the guidelines. No significant opposition voiced.
• Vote: Passed 7–0 (unanimous, exceeding the two-thirds requirement).

Tempe Market Station (High Street Residential / Trammell Crowe) – Item 6B2

• Applicant presentation: Wendy Riddell, attorney for Barry Riddell LLC, representing developer Trammell Crowe (trading as High Street Residential), presented a five-story, 310-unit multi-family development at 1953 East Rio Salado Parkway. Sought general plan amendment, zoning change to MU4, PAD amendment, and site plan approval. Riddell emphasized the project's consistency with Smith Hub guidelines, the general plan's emphasis on TOD density along Rio Salado, and the company's track record of high-design, award-winning residential projects. Riddell highlighted that the site is the gateway to the Smith Hub, sits along the future streetcar route, and would maximize public infrastructure investment.
• Staff recommendation: DRC approved 6–1. City Attorney Judy noted that the individual project approval would not create a "slippery slope" for other rezonings, as each regulatory process is separate.
• Public comment: No public speakers appeared; no comment cards submitted for this item.
• Council discussion: Extensive and pointed.
  • Jennifer Adams praised the project, noting the city's job growth and the need for housing to retain new employees and their spending in Tempe.
  • Council Member Navarro acknowledged the market-rate nature of the project, noted that affordability on such expensive land is difficult to pencil out, and suggested that contributions from projects like this to an affordable housing fund could enable the city to acquire and develop truly affordable properties internally within the hub. Navarro supported the project as a "gateway" and starting point but urged strong integration with retail and strong flow between the apartment complex and surrounding uses.
  • Council Member QBen raised the most direct challenge. She noted that the project does not include deed-restricted affordable or workforce housing despite the hub's founding principle of housing affordability. She cited the affordable housing impact statement showing rents of $1,450–$2,350/month, with no restrictions, and argued that supply-and-demand housing theory has been "disputed" in peer-reviewed literature and can fuel gentrification rather than create affordability. QBen requested that Riddell and Donna Kennedy address solar deployment, the possibility of mixed-income units, and whether the developer might contribute to the city's affordable housing trust fund. She indicated willingness to consider the project if these issues could be resolved by the second hearing.
  • Council Member Arredondo Savage expressed disappointment that the gateway project does not reflect the hub's vision of uniqueness, arts integration, and mixed-income communities. She questioned why the project lacks public open space (amenities are internal only), criticized the five-story stick-and-stucco design as generic, and asked staff why affordability is deemed "not appropriate" in this location when the hub guidelines emphasize it. Savage also floated the possibility of a taller, denser project with more public benefit.
  • Vice Mayor Randy Keating suggested the developer consider making the project taller and denser to bring rents down and generate public benefits.
  • Donna Kennedy (Economic Development) stated that the project fulfills Smith Hub goals by locating density along the TOD corridor and that the 308 of 310 units qualify as "workforce" under the city's 110–120% AMI matrix (though without deed restriction, rents could rise). Kennedy also confirmed that the developer had previously discussed contributing to the affordable housing affiliate and including art elements, though those commitments were unclear.
  • Wendy Riddell reiterated that no affordable deed restriction is proposed, but argued that bringing 310 new units to the market will indirectly create workforce and affordable housing by adding supply. She emphasized that the project is not requesting any incentives and is responsive to demonstrated job growth in the region. Riddell acknowledged Council Member Arredondo Savage's design feedback and indicated willingness to explore art contributions and taller density at the second hearing.
• Vote: This was a first public hearing only; no vote was taken. Second hearing scheduled October 29, 2020.

Annexation of 1230 West Carolina Lane (Item 6A4)

• Applicant presentation: City Engineer Julian Drossang and Ryan Levac explained that the property owner has requested annexation of a 3.5-acre parcel in Maricopa County into the City of Tempe; no formal development application has been submitted yet.
• Staff recommendation: Staff confirmed this is a procedural annexation hearing; four additional public opportunities will be available for any future development proposal (DRC, two council hearings, etc.).
• Public comment: One speaker, Chris Mitchell, representing 100+ residents, opposed the annexation citing severe traffic and emergency access concerns on Carolina Lane and Priest Drive, noting the proximity of Mark Taylor apartment complex (596 units) and the soon-to-open Tempe Village (120 homes). Mitchell stated a petition with 100+ signatures opposing the development.
• Council discussion: Council Member QBen asked for clarification on whether a development proposal had been submitted; staff confirmed none has yet. Corey D Woods and staff emphasized that the annexation and any future development are separate processes with multiple public hearing opportunities ahead.
• Vote: Initial public hearing only; no vote taken. Hearing closed.

Opposition

Number of speakers against: 1 formal public speaker (Chris Mitchell on Carolina Lane annexation); 1 submitted comment card on the Urban Core Master Plan withdrawal (Nolan Williams); 1 submitted comment card on the Urban Core Master Plan withdrawal (Daniel Rubio); 1 submitted inquiry on homelessness initiatives (Luke Brennaman, read by clerk).

Main concerns regarding Tempe Market Station (Item 6B2):

1. Absence of affordable or workforce housing deed restrictions: The project offers market-rate rents ($1,450–$2,350/month) with no long-term affordability covenants, contradicting the Smith Hub's founding emphasis on affordable and workforce housing for service-sector workers.

2. Gentrification risk and trickle-down housing theory: Council Member QBen cited academic literature disputing the "supply and demand" argument that new market-rate units automatically lower costs for lower-income residents; instead, new construction can fuel gentrification and raise rents across a district.

3. Design lacks uniqueness and urban character: Council Member Arredondo Savage criticized the five-story stick-and-stucco design as generic and unsuitable for a "gateway" project to an innovation hub that should reflect "industrial," "artistic," and "unique" character.

4. Internal-only amenities, no public open space: All amenities (dog park, pool, courtyard) are reserved for residents; no public plaza or open plaza integrates the development into the broader streetscape or Smith Hub vision.

5. Misalignment with the 20-minute city vision: Council Member Arredondo Savage questioned whether service-sector workers earning typical wages can afford $1,650–$2,350/month rents, undermining the stated goal of housing workers near employment.

6. Weak integration with surrounding retail: Council Member Navarro cautioned that the project must flow naturally into the adjacent Tempe Marketplace retail; a disconnected apartment complex risks feeling isolated and undermining the mixed-use vision.

7. Withdrawal of Urban Core Master Plan: Nolan Williams and Daniel Rubio (submitted comment cards) expressed deep disappointment that the broader Urban Core Master Plan—which included stronger affordability and sustainability components—was withdrawn after two years of staff and community input. Rubio called the withdrawal a failure to address the "two crises" of housing affordability and climate change, attributing it to a "highly motivated local minority" of meeting attendees who opposed density.

Main concerns regarding Carolina Lane Annexation:

1. Traffic congestion: Chris Mitchell noted that Carolina Lane and Priest Drive already experience heavy traffic from the Mark Taylor complex (596 units) and Tempe Village (120 homes); 30+ additional homes would exacerbate congestion.

2. Emergency access and safety: Cited concerns that fire and emergency vehicles would have difficulty accessing and exiting the community.

Organized opposition: Chris Mitchell indicated 100+ resident signatures on a petition against the annexation.

Support

Jennifer Adams: Praised Tempe Market Station as ideal for retaining employees attracted to Tempe's job growth (ASU, Freedom Financial, four-thousand-employee business parks, Novus Innovation Corridor). Emphasized that workers should be able to afford to live in Tempe and spend their paychecks locally.

Council Member Navarro: Supported the project as a "gateway" and "starting point" for the Smith Hub, acknowledged market-rate realities on high-cost TOD land, and proposed that contributions from market-rate projects to an affordable housing fund could enable the city to acquire and develop truly affordable properties internally within the hub. Urged strong design integration with retail uses.

Council Member Garland: Expressed enthusiasm for the Smith Hub guidelines and their consistency with the Apache character area plan and neighborhood input.

Council Member Arredondo Savage (conditional support): While critical of the design and affordability gaps, indicated willingness to reconsider if the developer addressed public open space, art integration, and unique design character by the second hearing.

Vice Mayor Randy Keating: Suggested the developer consider a taller, denser project to bring rents down and increase public benefits.

Developer Wendy Riddell (Trammell Crowe/High Street Residential): Emphasized the company's track record, consistency with Smith Hub guidelines, and willingness to explore art contributions and affordability fund donations at the second hearing.

Project Details

Case number: Not explicitly stated in transcript for Tempe Market Station; annexation case identified as ANX 20-001.

Applicant / Developer: Trammell Crowe (trading as High Street Residential), a publicly traded, independently operated subsidiary of CBRE, named one of Fortune's most admired companies eight years running.

Attorney: Wendy Riddell, Barry Riddell LLC.

Location / Address: 1953 East Rio Salado Parkway, Tempe, Arizona. Site is at the gateway to the Smith Industrial Innovation Hub, along the future streetcar route, immediately east of Tempe Marketplace.

APN (if stated): Not stated in transcript.

Current zoning → Proposed zoning: PCC-2 (Planned Commercial Center) → MU4 (Mixed Use 4), with amended Planned Area Development (PAD) overlay.

Density / units / square footage: 310 units across a five-story residential structure. Rents: Studio $1,450–$1,500; 1-bedroom $1,650–$1,700; 2-bedroom $1,950–$2,350. No affordable or workforce housing deed restrictions. Project includes 1,000+ parking spaces (with two drive-through facilities).

Changes from previous version: This is the third time the site has come before council. Previous iterations sought different zoning and pad uses (primarily retail and commercial). Current proposal replaces most retail with multi-family residential while maintaining a modest retail component along Rio Salado Parkway, responding to the newly adopted Smith Hub guidelines and the future streetcar route.

Amenities: Dog park, pool, spa, fitness center, gym, interior courtyards, bike storage, barbecue areas, balconies, patios. All amenities are internal to the complex; no public plaza or open-space contribution identified.

Vote Breakdown

Smith Industrial Innovation Hub Development Guidelines (Item 6A3):

• Final: 7–0
• Yes: Council Member Navarro, Council Member QBen, Council Member Garland, Randy Keating, Council Member Arredondo Savage, Jennifer Adams, Corey D Woods
• No: None
• Abstentions / absences: None

General Plan Amendment for Smith Industrial Innovation Hub (Item 6C2):

• Final: 7–0 (unanimous; required 5-of-7 supermajority)
• Yes: Council Member Navarro, Council Member QBen, Council Member Garland, Randy Keating, Council Member Arredondo Savage, Jennifer Adams, Corey D Woods
• No: None
• Abstentions / absences: None

Tempe Market Station (Item 6B2):

• Status: First public hearing only; no vote taken. Second hearing and vote scheduled October 29, 2020.

Outcome & Next Steps

Smith Innovation Hub: Development guidelines and general plan amendment both approved unanimously tonight, setting the policy framework for future development in the 854-acre district. The guidelines will be used to evaluate future projects, though they are not mandatory requirements—rather, they provide a vision and recommended standards.

Tempe Market Station: First hearing held October 15, 2020. Developer Trammell Crowe (via attorney Wendy Riddell) indicated openness to discussing contributions to the city's affordable housing affiliate trust fund and integration of art elements by the second hearing on October 29, 2020. No formal commitments were made tonight. The 310-unit project remains contingent on council approval at the second hearing; at that time, council may condition approval on affordability fund contributions, art integration, enhanced public open space, or design modifications (including potential height and density increases, as suggested by Randy Keating and Council Member Arredondo Savage).

Urban Core Master Plan: Withdrawn from consideration. Only the Smith Industrial Innovation Hub component proceeded as a separate general plan amendment (Item 6C2), which was approved. Two resident speakers (Nolan Williams and Daniel Rubio, submitted comments) expressed strong disappointment, citing the plan's role in addressing housing affordability and climate sustainability.

Carolina Lane Annexation (Item 6A4): Initial public hearing held. No vote taken. If the property owner pursues development, additional regulatory hearings (DRC, two council meetings) will follow. Staff clarified that annexation approval would not constitute approval of any particular development project.

Controversies & Context

Affordability Crisis in a Growth Hub: Tempe has experienced dramatic job growth with the opening of ASU's Novus Innovation Corridor, Freedom Financial's relocation, and expansion of business parks. Jennifer Adams stressed the need to house incoming workers. However, Council Members QBen and Arredondo Savage expressed frustration that the gateway project to the city's flagship affordable-housing-focused innovation hub is market-rate with no affordability restrictions. QBen cited literature questioning whether new market-rate supply actually reduces rents for lower-income residents, particularly in gentrifying urban cores.

Smith Hub Vision vs. First Project Reality: The Smith Industrial Innovation Hub guidelines explicitly emphasize live-work units, loft-style housing, mixed-income communities, and arts integration—a departure from typical multi-family development. Council Member Arredondo Savage criticized the Tempe Market Station design as "stick and stucco," lacking the uniqueness and industrial character the hub was meant to embody. Arredondo Savage also flagged the absence of public open space, suggesting the project is inward-focused and does not contribute to the public realm or streetscape vision of the Smith Hub.

Supply-and-Demand Housing Argument Disputed: Developer Riddell and Donna Kennedy argued that new market-rate supply will eventually create workforce housing by increasing overall availability. Council Member QBen countered with academic citations and non-profit research suggesting this "trickle-down" model takes years to materialize and can instead fuel gentrification. This disagreement reflects a national debate about whether growth-oriented zoning changes alone can address affordability or whether mandatory affordability covenants are necessary.

Withdrawal of Urban Core Master Plan: The city withdrew the broader Urban Core Master Plan—a comprehensive two-year planning effort that included transit-oriented development, affordability, and sustainability components—from tonight's agenda, citing lack of consensus. Two resident commenters (Nolan Williams and Daniel Rubio) objected, arguing the withdrawal capitulated to a vocal minority and abandoned the city's commitment to addressing housing affordability and climate action. This withdrawal occurred the day before the council meeting and surprised some commenters who believed the plan had proceeded to a vote.

Mayor and Council Comments on Affordability Fund: Council Member Navarro suggested that contributions from profitable market-rate projects like Tempe Market Station to an affordable housing fund could enable the city to acquire properties and develop truly affordable housing within the hub—a strategy acknowledging that private developers often cannot justify on-site affordability on high-cost TOD land. Donna Kennedy and Wendy Riddell indicated prior discussions about such contributions, though details remain unresolved pending the October 29 hearing.

Design and Character Concerns: Council Member Arredondo Savage raised concerns that a five-story, primarily stucco residential project does not signal the "innovation," "industrial," or "unique" character the hub was meant to project. She floated the possibility of a taller, denser project with steel, concrete, or distinctive architectural elements. Randy Keating echoed this, suggesting that increased height and density could offset affordability concerns if rents were lowered as a result.

First African-American Police Chief: Earlier in the meeting, City Manager Andrew Arlene Chin and the full council swore in Jeffrey Glover as interim Chief of Police for a one-year term. Glover is the first African-American police chief in the Tempe Police Department's history. All council members expressed strong support and confidence in his leadership amid national scrutiny of policing.

Duration

• Tempe Market Station presentation and council discussion: Approximately 90 minutes (from ~6:55 p.m., when Item 6B2 began, to ~8:00 p.m., when it concluded; significant portions devoted to other items and presentations).
• Total meeting duration: Approximately 2 hours 8 minutes (6:02 p.m. to 8:10 p.m.).

Other Notable Items

Smith Industrial Innovation Hub Development Guidelines (Item 6A3): Approved 7–0. Establishes vision and design standards for the 854-acre hub, including recommendations for live-work units, townhomes, loft-style housing, mixed-use, pedestrian connectivity, and up to 90-foot heights along Rio Salado Parkway for TOD. Council Member Arredondo Savage requested staff research on best practices for mixed-income housing (single-project integration vs. diverse product types across the hub) and confirmed her interest in monitoring live-work unit occupancy rates given historical vacancy challenges.

Interim Police Chief Jeffrey Glover Sworn In: City Manager Andrew Arlene Chin and all seven council members expressed unanimous support for Glover, the first African-American police chief in department history. Glover spoke briefly, referencing a conversation with a retired commander early in his career where he stated a goal of becoming the first African-American police chief of Tempe—a goal now achieved. Council members praised his professionalism, integrity, and care for the officers under his command.

Urban Core Master Plan Withdrawn: City withdrew the broader Urban Core Master Plan (which included the Smith Hub component plus additional downtown and TOD elements) from consideration, citing lack of consensus. Only the Smith Hub general plan amendment proceeded separately and was approved 7–0. This withdrawal drew negative public comment from residents and sustainability advocates who felt the plan represented the city's bare minimum on affordability and climate action. Corey D Woods and Staff clarified the withdrawal was procedural and did not prevent future affordability initiatives or climate work.

Carolina Lane Annexation (1230 West Carolina Lane, ANX 20-001): Initial public hearing held. Property owner requested annexation of 3.5-acre parcel from Maricopa County into Tempe; anticipated 30+ homes in future development. One resident speaker (Chris Mitchell) opposed on traffic and emergency access grounds, citing a petition with 100+ signatures. Staff emphasized that annexation and future development are separate processes with multiple public hearing opportunities ahead. No vote was taken; hearing was closed pending any future development application.

Election Information Provided by City Clerk Carla Reese: Clerk highlighted voter registration deadline of October 15, 2020 (11:59 p.m.) and provided details on early voting options, including a drive-through ballot drop at Tempe Diablo Stadium, ballot tracking, and five bond measures on the November 3, 2020 ballot. Jennifer Adams and QBen thanked Clerk Reese and provided information on the early voting and ballot-tracking features.