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Retail project by new Coyotes arena breaks ground
Opening projected for fall 2005
Pat Flannery
The Arizona Republic
Sept. 29, 2004 01:40 PM
[font=arial,helvetica,sans-serif]Though a year behind schedule, Westgate City Center officially broke ground Wednesday with developer Steve Ellman promising to deliver "a major economic engine for the city of Glendale'' by October 2005.
The groundbreaking comes despite the National Hockey League player lockout that will cost Glendale Arena at least some of its 40-plus Phoenix Coyotes home games this fall and winter. Ellman, co-owner of the Coyotes, said the labor dispute would not affect Westgate's financing.
The first phase of the mixed-use commercial and retail development will encompass 505,000 square feet of restaurants, retail and office space, and a 4,000-seat movie theater complex, all built around a series of pedestrian plazas directly north of Glendale Arena[/font]
Orders for steel and concrete for the project have been placed, and Perini Building Co. has been selected as the general contractor for the first phase. Trammell Crow Residential, a residential development company, also announced that it bought a portion of the site east of the arena, where it plans to build 378 multifamily apartments.
Bruce Hart, senior managing director of Trammell Crow Residential's Phoenix office, said the housing project, which is separate from Westgate's first phase, would break ground in December 2005.
Ellman said financing is in place for Westgate's entire $115 million initial phase, which is being developed by The Ellman Cos. Though neither he nor partner Jerry Moyes, a Glendale trucking executive, would discuss details of the financing, company officials previously have said they were using construction loans to launch the project.
Moyes has a large personal stake in the development, however. Ellman on Wednesday offered public praise for Moyes' financial contributions, noting that without them, "We wouldn't be here today.''
Moyes said that he was "heavily invested'' in the deal but declined to specify how much. He said he expected it to be a lucrative long-term investment given the West Valley's rapid growth.
Moyes, who heads Swift Transportation Co. and Central Freight Lines Inc., has had his finances under recent scrutiny as the Securities and Exchange Commission conducts an inquiry into trading of Swift stock. He has been a partner in Ellman's arena-related development partnerships for several years.
Westgate's first phase contains 280,000 square feet of retail space, though nearly all of the 20 tenants that have signed leases so far are restaurants and bars as opposed to retail outlets for shopping. Ellman said another 20 to 25 tenants still are negotiating leases, among them a Virgin Megastore.
Ellman said he also has commitments from buyers to purchase 15 of 17 independent retail "pads" along roadways within Westgate, where anything from restaurants to banks will locate.
Tenants identified so far in the first phase include a Sauce bistro, Bloom restaurant, Maloney's Tavern, Martini Ranch, Lucid Entertainment, The Salty Señorita, Doc Green's Gourmet Salads, Moe's Southwest Grill, Mama Fu's Noodle House, Cold Stone Creamery, Bamboo Grille, Qwest retail store and Coronado Tobacco.
Other Westgate tenants committed to independent pad locations, all of which will build their own facilities, include Claim Jumper Restaurants, Golden Corral Family Restaurants, Famous Dave's barbeque restaurant, Carl's Jr. and Discount Tire Co. Ellman said he hopes to start building a retail power center west of the arena along Loop 101 sometime next year, with leasing discussions already under way. The power center would be built in two phases.
The Coyotes and the Arizona Sting lacrosse team will move into some of the 220,000 square feet of loft office space also being built in the first phase. Sometime next year, Ellman also plans to start construction on the first of a string of small garden office buildings along 91st Avenue. The first building is now being designed. CB Richard Ellis has been retained handle all of Westgate's office leasing, Ellman said.if(ScriptsLoaded) stInit();http://www.azcentral.com/arizonarepublic/news/pics/breaking/0929westgate29-ON.jpg
