Fueling the Economy

from AZRE May/June 2022

Data Centers

FUELING THE ECONOMY IN TEMPE

Even prior to Arizona’s statehood, Tempe has steadfastly plumped up the region’s economy and is recognized for upholding its heritage while also embracing innovation at a rapid pace

By ERIN THORBURN

Shortly after homesteaders (including the notable Charles Trumbull Hayden) established what is now Tempe, the community quickly became known as the trade center for the south side of the Salt River Valley. And ever since, Tempe continues to prevail as a bustling economy-driving powerhouse. With staples such as Tempe Town Lake, attracting 2.4 million visitors and accumulating close to $2 billion in economic impact since its opening, combined with newer endeavors like the $1.8 billion mixed-use South Pier Project, the city shows no signs of slowing its economic roll.

So what makes this modern-mixedwith-old-school-charm locale persist in attracting talent, business and bankroll for the local, regional and state economy?

“I would say in Tempe, we’ve always been known for our innovative spirit,” says Corey Woods, mayor of Tempe. “There have been mayors and city council members from decades past that had a vision for what the city could become. And so, I think a lot of what you’re seeing is the culmination of all of those efforts from 10, 20, 30 and 40 years ago, all taking place right now, which is really exciting.”

The collective foresight of Woods and his predecessors has indeed established an infrastructure conducive to cultivating a strong presence of staple industries throughout the municipality. Among the strong sectors fueling Tempe’s economy are

MAJOR DEVELOPMENT: South Pier at Tempe Town Lake, a $1.8 billion project on Tempe Town Lake, will be a mixed-use entertainment destination that will include apartments, condos, retail, a hotel, offices and central green and plaza areas.

Robert Cortazzo Corey Woods

advanced business services, advanced manufacturing, technology, healthcare and biotechnology, and tourism.

Woods explains that having a built-in workforce pipeline courtesy of renowned institutions such as Arizona State University and the Maricopa Community Colleges District, coupled with a solid transportation network is largely to thank for Tempe’s economic ingenuity. “We graduate so many people with bachelor’s, master’s and doctoral degrees,” he says, “which is huge for our current employers and our prospective employers because they see a constant talent pipeline within our community. And that makes us very attractive for companies of all sizes to want to be in.”

SOUTH PIER PROJECT EDUCATION IS KEY

According to Woods, almost 20% of Tempe’s residents have postgraduate degrees — which is substantially higher than Maricopa County or the entire state.

And as for transportation, Woods relays that because Tempe has a “true multi-modal transportation system,” it’s beginning to resemble communities like that of Chicago or Washington D.C., that cater to those seeking ways to get around the city sans single-use automobiles.

In addition to enabling easy access to the I-10, Loop 101, Loop 202, US60, I-143 and I-153, Tempe is a mere 10 minutes from Phoenix Sky Harbor International Airport, has 365-day bus service (including Free Orbit shuttles connecting the ASU campus, downtown Tempe and neighborhoods) and the Valley Metro Rail line linking Tempe, Phoenix and Mesa. And soon, the city will be the only Greater Phoenix Metro city to have a streetcar.

Cyclists, too, embrace Tempe’s American Bicyclist gold-Level Bicycle-Friendly Community Award status; currently, the city boasts the highest percentage of bicycle commuters in the country.

It’s important to note that while Tempe’s solidified workforce, education and transportation systems draw major development interest, projects like South Pier add dividends back to these silos. “You’re talking about $12 million that the developer is stipulating to build a pedestrian bridge by Tempe Town Lake,” Woods says, “and over $10 million going to the Tempe Coalition For Affordable Housing, which is our affordable housing non-profit that the city of Tempe manages. And, $250,000 going to our Tempe Education Foundations, to support our students and our educators.”

South Pier will also impart $2 million toward landscaping, according to Woods.

Accompanying South Pier’s economic contributions is the Novus Innovation Corridor, a public/private partnership between Arizona State University and developer Catellus Development Corporation which includes the 2.1-million-square-foot Marina Heights project and $307 million in renovations of Sun Devil Stadium, generating 34,000 projected jobs upon completion.

FUTURE OF TEMPE

As for Tempe’s future economic enterprises, “The outlook’s bullish right now,” says Robert Cortazzo, Southwest division president, Tempe-based

NOVUS INNOVATION CORRIDOR

Adolfson & Peterson Construction.

“The only concerns we have are when we talk at the senior level or what types of impacts inflation or other external factors can have.”

Cortazzo further explains that inflationary pressures are prompting concerns, “Some of our more sophisticated clients are looking at ways we can share that risk with them and have the ability to move forward with projects,” he says. “I think the interest rate increases might have an impact on some of the multifamily and other projects that we’re seeing that are finance-based. So there seems to be a rush right now for clients to get their projects under contract and started.”

But, despite inflation-related challenges and demand for talent outpacing supply, Tempe’s development and redevelopment efforts endure.

“We’re currently on track to getting a cool project at the Hayden Flour Mill,” Woods says.

“We entered into negotiations about probably six or so weeks ago with Sunbelt Holdings and Venue Projects, to redevelop the Flour Mill.”

The Hayden Flour Mill currently resides on a five-acre property that Woods describes as a befitting locale for food and beverage concepts and open space and event space. “It’s arguably the most iconic site in the entire city, given the fact that Hayden Flour Mill is where Mill Avenue got its name,” he says.

LEARN MORE

WHAT: Fueling the Economy – City of Tempe TOPICS: The event will include three panels of industry experts discussing the most relevant topics and what is on the horizon for Tempe, including development, hospitality and housing. WHEN: May 17, 2022 at 3 p.m. WHERE: Harkins Tempe Marketplace, 2000 E. Rio Salado Pkwy., #1160, Tempe TICKETS: azbigmedia.com (click on Awards & Events tab)

HOUSING CRUNCH

As development in mixed-use and retail — as timely examples — ramp up, prioritization of workforce housing opportunities is top-of-mind for Tempe. “Tempe is known for being a very diverse, inclusive community. And you can only remain so if you have housing for people of all different backgrounds, income levels and occupations,” Woods says.

In 2018, a Market Study and Affordable Housing Context report demonstrated, “Based on Citywide household growth projections through 2040, an additional 21,324 housing units will be required to accommodate households across income categories.”

The study findings are what Woods notes as “the impetus for why the council in January 2021, passed what’s known as the Hometown For All, affordable housing strategy. Which is really to generate additional revenue for the purpose of doing more property and land acquisitions in the City of Tempe, to create more affordable housing.

“We are actively out acquiring land,” Woods adds. “We purchased the biggest one, probably to this point, which was the old Food City site [formerly] owned by Michael Pollack, at the corner of Apache and Dorsey at the end of December 2021, for approximately $10.6 million. Eventually, that’s going to turn into affordable housing, as well as an affordable grocery store on the ground floor for the residents in that Apache Boulevard corridor.”

As for continuing to fuel the economy, Woods closes with a positive prediction:

“Quite honestly,” he says, “I think that the best is yet to come for our city. And I would invite everyone to be a part of what we’re doing.”

BE IN THE KNOW. BE IN THE NOW.

Join AZ Big Media Publisher Amy Lindsey and Editor in Chief Michael Gossie on

the AZ BIG Podcast. Each week, an intriguing guest lends their expertise and industry knowledge to our listeners, providing thought-provoking and insightful conversations on a wide variety of timely business and industry topics. Amy and Michael craft their guest conversations to extract all the compelling business information that conveniently fits into a 15-minute podcast!

PODCAST EPISODES INCLUDE:

LENA ZIMMERMAN // Director of Delete Tattoo Removal & Medical Salon JAKE CURTIS // Shareholder of Burch & Cracchiolo VINCENT CLARK // Founder and president of Marketplace One Realty MARISSA ABDO AND MORGAN RENFRO // Founders of Lumen + Bevel

Available wherever you listen to podcasts!

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With the construction industry continuing to boom in 2022, leaders have been grappling with the need to hire and retain top talent. To draw in qualified applicants, companies have had to boost and highlight quality benefits in addition to promoting strong company culture.

In a focus to stand out against competitors, construction organizations focus on diversity, equity, and inclusion (DEI) goals throughout the hiring process. In doing this, companies are hiring a more diverse workforce that brings a variety of experiences and knowledge to their workforce. This ultimately helps with the overall success of their teams and organization.

There is no one-size-fits-all description of a quality candidate. When integrating DEI goals into the hiring process, construction organizations must let the resume and work history tell the applicant’s story. It’s important to not only look for experience but to also look for ambition and a history of growth. Quality employees are more receptive to construction organizations that show reciprocal benefits upon being hired.

When incorporating DEI into hiring, it’s crucial to evaluate job descriptions to ensure they are inclusive and be aware of and work to eliminate unconscious biases. Construction companies can also take extra measures to ensure that job openings are easily accessible to a variety of prospective employees. In addition to posting job openings to websites such as Indeed and LinkedIn, hiring teams utilize job fairs that focus on diversity and partner with diversity-focused hiring organizations.

A company’s DEI goals can also include providing opportunities to veterans by working with organizations that support veterans who are re-entering the workforce to promote job openings and outreach. The hiring team of the affordable housing construction organization MFRG-ICON Construction partners with Vet Talks, an Arizona-based networking and career event for veterans.

In addition to focusing on DEI in hiring, companies can focus on company culture to hire top talent. At MFRG-ICON Construction, culture is ingrained in every level of the business. Prioritizing a culture that supports and uplifts its employees and provides a space for them to grow within their roles ultimately benefits the company.

Highlighting a strong company culture early in the interview process helps hiring managers find great candidates that believe in the mission of the construction organization. This will bring in diverse candidates who want to be part of the culture while creating an immediate connection and bond.

Focusing on DEI in hiring is imperative for construction companies that wish to succeed in this competitive environment. Teams with a variety of experiences and backgrounds allow for more innovative ideas and solutions.

Erika Lopez Construction

Erika Lopez is human resources and and payroll at MFRG-ICON Construction.

MFRG-ICON Construction

Background: With significant specialized experience and a strong reputation in the Low-Income Housing Tax Credit (LIHTC) industry since 1992, MFRG-ICON Construction has drawn the blueprint for success through its work ethic, knowledge, quality, and financial strength. As a skilled and experienced General Contracting firm, its team has completed more than 30,000 units of Affordable Housing and $2 billion in construction while temporarily relocating over 50,000 families and seniors. On top of providing a quality product, MFRG-ICON strives to provide a strong company culture internally, as well as through its social impact initiatives that empower employees to give back to the communities MFRG-ICON touches. Due to MFRG-ICON’s dedication to its team and communities, MFRG-ICON has been recognized as a Best Place to Work by Inc. Magazine and a Top Company to Work For by The Arizona Republic.