Phoenix Approves Tax Incentives For Downtown Fry’s Project
By a 7-2 vote, council members approved up to $18.3 million of financial support to bring a Fry’s grocery store downtown. The deal with RED Development calls for Fry’s to anchor the intersection of First and Jefferson Streets.
The high-rise project also includes office and retail space and about 300 apartments. While councilmen Sal DiCiccio and Jim Waring complimented the project both said they could not support the incentives, including a 50-year property tax break.
Mayor Greg Stanton said incentives make sense in this case.
“Obviously this is a site right in the heart of our city, an empty lot that is currently generating no economic activity for the city of Phoenix," Stanton said. "Once this project is completed, it’s going to generate a significant amount of economic activity.”
City staffers say the developer will spend about $160 million on the project. The area, known as Block 23, has been city-owned since the late 1800s and staff says it has never generated property taxes. According to Phoenix Economic Development Director Chris Mackay, the project is expected to generate $76 million in sales taxes over the 50-year agreement.
Fry’s hopes to open in 2018.
See plans presented at a meeting earlier this year: