City News

CITY NEWS YEARS OF LITIGATION AT CITY NORTH END AS CROWN REALTY & DEVELOPMENT ACQUIRES DEVELOPER RIGHTS FOR DESERT RIDGE LAND

CROWN REALTY & DEVELOPMENT, A significant retail development that was to include

RENOWNED CALIFORNIA-DEVELOPER Bloomingdales, Nordstrom’s and Macy’s. The

BEHIND SIGNIFICANT PROJECTS IN recession and years of litigation prevented the

ARIZONA, through controlled affiliates, has closed project from moving beyond the High Street on 96.5 acres and acquired the “Master Developer” portion that was completed in 2008. rights in North Phoenix’s Desert Ridge master planned community. The property and rights have “It’s impossible to grow new land but the been the subject of active litigation and bankruptcy slumbering status of this property for the last for a decade. Crown now plans to develop the land decade or more does exactly that, as the end of as a new urban core in Phoenix. litigation means the start of development for what Crown’s winning bid for the land was $54 million estate in Arizona, and perhaps America,” said Rick while the Bankruptcy Court had previously valued Carpinelli, Senior Vice President of Acquisition the land as high as $121 million. and Development at Crown. The acquired acreage comprises the majority of the vacant land east of the 1.2 million square foot Desert Ridge Marketplace and that surrounds the existing High Street. The land Crown has acquired Carpinelli noted that the greater Phoenix market is maturing with corporate headquarters for technology, healthcare and financial service companies moving to and expanding in the market. The majority of that growth has been centered in Tempe or the Southeast Valley where land and zoning has been plentiful to meet the demand. That all changes with City North jumping onto everyone’s short list. ” “ The land Crown has acquired is zoned for about 2,500 residential units, 2.0 million square feet of office, 500 hotel rooms and 100,000 square feet of retail. is zoned for about 2,500 residential units, 2.0 million square feet of office, 500 hotel rooms and Prior to the Great Recession and the more 100,000 square feet of retail. recent legal imbroglio, significant commercial “Unlocking this parcel from years of litigation now late 1990s and early 2000s with Desert Ridge provides the opportunity to develop a 21st century Marketplace, Mayo Clinic, JW Marriott Resort, urban community on the north side of Phoenix,” American Express and thousands of residences. said Robert Flaxman, CEO of Crown. “What Century City was to Los Angeles in the 1960s, the With this closing by Crown, the City of Phoenix new City North project will be to Phoenix,” he now has the opportunity to better capture pent up said. demand in the Valley and create a second urban Flaxman said there is now finality about litigation and certainty about future development on what Mayo Clinic has recently announced plans to many consider to be Phoenix Metro’s most prized, double the size of its nearby 250-acre campus undeveloped commercial property. As part of with a $650 million investment. Arizona State bankruptcy court proceedings all claims have been University has broken ground on its first 166,000 settled. As part of the judgment, Crown obtained square foot building on its adjacent healthcare what are known as “master developer” rights not campus. American Express is also under only for its 100-acre site but also the entire 5,700 construction on a new 300,000 square foot building acres from the 51 Freeway to 64th Street and on expanding its current employee base of 5,000 to both sides of the heavily trafficked Loop 101. 8,000. That’s approximately five square miles in the City is unquestionably one of the best pieces of real development did occur at Desert Ridge in the node for the city. of Phoenix’s highest-growth corridor. These developments show the demand for growth in this North Phoenix sub-market and were able City North was planned in the mid-2000s to be a to proceed because they were properties outside of the litigation that has stymied more growth in Desert Ridge. This all changes thanks to Crown’s successful conclusion of litigation and acquisition.

Crown acquired the 96.5 acres and Master Developer rights in Desert Ridge as a final, nonappealable step in what has been a long series of various litigation matters.

In late 2015 and early 2016 affiliates of Bruce Gray and Gray Development defaulted on notes owned by Crown. One of the notes was secured by the 96.5 acres of land that surrounds the High Street property as well as the Desert Ridge Master Developer rights. In the years that Gray held these rights, not one shred of development occurred. Gray filed bankruptcy in May 2016. The bankruptcy was resolved in March 2018 with a ruling from U.S. Bankruptcy Court that became a final and non-appealable order. The ruling ordered the sale of the Desert Ridge property through a court appointed trustee. Beth Jo Zeitzer of ROI Properties was appointed by the court to be the trustee to oversee the marketing and sale of the property. The bid deadline for the court ordered sale was January 15, 2019. Crown’s credit bid was the winning bid and thus Crown purchased the property and Master Developer Rights, closing on January 28.

Crown, which has locally developed the Montelucia Resort (now an Omni property) and spearheaded the redevelopment of Mountain Shadows in Paradise Valley, now plans to develop what will essentially be a new city on the coveted property.

“The new City North project will include a residential core, office buildings from four to ten stories, vibrant new restaurants, a full-service hotel and several select service hotels,” said Carpinelli.

“All of this is great news for existing residents of the area soon to get more amenities as well as future residents and employers who will be able to call this amazing slice of Arizona home,” said Flaxman.

Crown is already working with several major corporate users looking to locate their business at Desert Ridge. Crown will begin developing the property this spring and plans to complete the streets, sidewalks and landscaping by the end of 2019. In addition, Crown anticipates the first office building, the first residential project and the first restaurant all starting construction this year.

PLEIN AIR PAINTING FESTIVAL RETURNS TO DESERT RIDGE MARKETPLACE DESERT RIDGE MARKETPLACE open air. This format allows the art- “The Plein Air Painting events are Guests can enjoy free drawing and IS PARTNERING WITH ARIZONA ists to leave the four walls of a studio quickly growing in popularity around painting workshops at The District BUSINESS COMMUNITIES FOR behind and experience painting in front the country, and we are honored to Stage, kids craft zones and interactive THE ARTS (azbca), for the second of the subject. host the second annual Plein Air activities and games featuring Desyear in a row to host the Plein Air Painting Festival in conjunction with ert Ridge Marketplace retailers and Painting Festival from 11 a.m. to 3:30 Contemporary plein air artists capture azbca and Arizona Plein Air Painters restaurants. The event will culminate p.m. Saturday, March 9 throughout The moments in time that reflect the ever- Association at Desert Ridge Market- with an awards ceremony honoring District at Desert Ridge Marketplace, changing colors, light and shadows, place,” says Rebecca Smith market- the stellar artists. Attendees are en21001 N. Tatum Blvd. in Phoenix. temperature and shifting elements. ing director at Desert Ridge Market- couraged to participate in the People’s This art form requires stamina, focus place. Choice Voting from 3:30 p.m. -4:30 The festival will provide a unique op- and the ability to be completely ab- p.m. 2018 Plein Air Painting Festival portunity for local artists to produce sorbed in their work regardless of their “Plein Air Painting is an art form pieces will be auctioned off following original painted artwork live and in the surroundings. that allows the artist to capture the the awards ceremony. You could walk essence of the vibrant retail and com- away with your favorite masterpiece! munity space while inviting shoppers to experience the sights, sounds and SCHEDULE OF EVENTS: even textures of the plein air pro- • 9:00 a.m. – 3:30 p.m. Painting “en cess,” says Kate Marquez, executive Plein Air” director of azbca. • 11:00 a.m. – 3:30 p.m. Kids Activities, Workshops, Youth Plein Air Painting Over twenty artists from across Ari- • No later than 3:30 p.m., final art subzona will create paintings inspired by mission by artists to stage Desert Ridge Marketplace, competing • 3:30 p.m. - 4:30 p.m. Judging and for over $1600 in prizes and a chance People’s Choice Voting to become part of the official Desert • 5:00 PM Announce Winners Ridge Marketplace Plein Air Painting Gallery. New this year, youth from “This event is something fun for the The Valley will be selected through whole family, adults and children alike an application process to participate love to participate in the free art semiin an Instructor Led Youth Plein Air nars to craft their own masterpiece,” Competition. says Smith.

DINE WHILE LANCE HEADLEE PAINTS A CONTEMPORARY WESTERN MASTERPIECE ENJOY A THREE-COURSE MEAL WHILE tion pieces demanding the viewer to take a second food specials alongside the artistic ambiance of RENOWNED CONTEMPORARY WESTERN look. Headlee’s paintings offsetting the cozy textures of ARTIST LANCE HEADLEE paints his latest mas- “I look forward to sharing my as-it-happens cre- brick, wood and stone inviting diners to settle in terpiece at A Taste of Fine Art. The live painting ative process,” says artist Lance Headlee. “Seeing and savor the delicious offerings. event will take place on March 22, from 6 p.m. to people smile as they watch me bring what’s in my 9 p.m. at the town of Carefree’s popular upscale imagination into painted reality is a true joy.” For more information, visit lanceheadlee.com or bistro Venues Café on 34 Easy Street. venuescafe.com. Headlee’s Top Floor Gallery, located above While Headlee creates one of his original acrylic Venues Café at 34 Easy Street in Carefree, offers paintings on a 48x48 inch canvas, guitarist Dave tourists and locals a modern glimpse of the west Kendall will provide the perfect musical backdrop through distinctly original cowboys and cowgirls while guests feast on their meal. with rich earth tones and bold colors on large canvases. Headlee has been featured at the ThunThe $35 admission includes the trio of live paint- derbird Artists’ Carefree Gilbert Fine Art and Wine ing, a three-course meal and live music. Make a Festival, the Carefree Fine Art and Wine Festival, reservation at 480-595-9909 or visit venuescafe. and the Arizona Fine Art and Wine Festival. com or lanceheadlee.com. As the largest restaurant gallery in Arizona, VenLance Headlee’s stylized art is unlike any other ues Café features Headlee’s artwork throughout traditional western artwork. In fact, it is the op- the American bistro offering comfort food with a posite of traditional and often described as cool, Southwest flair including street tacos, lamb chops, unique, fun and sexy. Bringing his imagination to burgers, filet mignon, salmon and special chicken life for more than 35 years, Headlee’s vivid acrylic schnitzel with lingonberries. Sunday brunch and a paintings are big, bold and in-your-face conversa- daily happy hour are well attended with drink and

AMERICAN AIRLINES ANNOUNCES EXTENSION OF NEW LONDON SERVICE AMERICA’S FRIENDLIEST AIRPORT® IS “New international air service helps Phoenix will be served by a Boeing 777-200ER. It will offer MAKING IT EVEN MORE CONVENIENT FOR grow our economy and global presence,” said 273 seats with three classes of service: Business TRAVELERS TO FLY NONSTOP to Europe from Phoenix Mayor Thelda Williams. “I am excited Class; Premium Economy; and Main Cabin service. Phoenix. American Airlines previously announced that American Airlines will be offering year-round, American is the only domestic carrier with nonstop last August that it will be offering nonstop service direct service from Phoenix to London. We look service to Europe from Sky Harbor. from Phoenix Sky Harbor International Airport forward to continuing to grow our partnership with to London Heathrow Airport beginning March 31 American Airlines.” For travelers, this provides another valuable and running through October 26. Now, American connection between Phoenix and Europe for both Airlines has announced this service will be offered The service, which is American’s first-ever overseas business and leisure as well as a boost to the year-round. intercontinental flight from Phoenix to London, economy. International flights to and from Phoenix bring in approximately $3 billion each year.

In addition to American’s service, British Airways continues to offer its daily nonstop service, departing from Phoenix at 7:45 p.m. The airlines’ flights to London provide travelers with 14 flights per week, and an easy connection to those wishing to travel beyond London.

Extended service on Condor Airlines to Frankfurt from Phoenix also begins again in May and runs through October. From Phoenix Sky Harbor, travelers will find access to more than 100 domestic destinations and 22 international destinations.

Learn more at skyharbor.com/flyphx.

DIGITAL LICENSE PLATES NOW AVAILABLE FOR ARIZONA MOTORISTS

TECHNOLOGY BUFFS HAVE A NEW ARIZONA LICENSE PLATE OPTION AVAILABLE TO THEM WITH THE INTRODUCTION OF ELECTRONIC DIGITAL PLATES.

For over a year, the Arizona Department of Transportation has tested this technology on a limited number of its fleet vehicles throughout the state to determine operational capabilities and endurance under multiple weather conditions.

ADOT also collaborated with the Arizona Department of Public Safety to ensure that the look of the plate and its messaging capabilities conform to legal requirements and law enforcement best practices.

The plates, called Rplate Digital License Plates, are LTE wireless connected devices similar to a tablet. The license plate number is constantly for added messages such as “invalid,” “stolen” and other notifications if needed.

While use of the Rplate is authorized by the ADOT Motor Vehicle Division and the Arizona Department of Public Safety, it’s not available at MVD or Authorized Third Party offices. Motorists who wish to buy the plate must do so through participating resellers, including vehicle dealerships and professional auto service providers or the plate manufacturer, Reviver Auto. The plate’s cost is determined by the manufacturer, and MVD does not receive any proceeds from sales.

For more information: reviverauto.com. $8M IN UPGRADES AT JW MARRIOTT DESERT RIDGE RESORT OUR VERY OWN JW MARRIOTT DESERT RIDGE RESORT RECENTLY WRAPPED UP $8 MILLION WORTH OF UPGRADES THROUGHOUT THEIR PROPERTY. Among the upgrades were 12 new private cabana cottages, six new poolside displayed, and the technology allows

suites, a new poolside bar, expanded fitness center and 12 new pickleball courts. The new pool suites overlook the resort’s lazy river and replaced the former poolside fitness center. Each of these suites include a wet bar, exterior patio with ceiling fans, misting systems and flat screen TV’s.

The resort removed three of their existing tennis courts to make room for the addition of the new pickleball courts. Pickleball is a paddle sport which combines the elements of badminton, tennis and table tennis, and is growing quickly in popularity