9/3/2008
GlobalTranz first to claim space at CityNorth Phase 1
Phoenix freight carrier GlobalTranz is the first tenant signed for the Offices on High Street at CityNorth.
GlobalTranz signed a 6.5-year lease and will occupy almost 9,000
square feet on the fourth floor, situated above ground-level retail and
restaurants in the project's first phase, which is opening in November.
The Offices on High Street will feature sustainable work spaces for
GlobalTranz and other tenants, according to developers Related Urban
and Thomas J. Klutznick Co. The project will include light-pollution
reduction, water-efficient landscaping, water-use reduction measures in
restrooms and a recycling program.
These measures will allow developers to pursue silver Leadership in
Environmental Energy Design certification from the U.S. Green Building
Council. The development's high-density environment also seeks to ease
pollution through its overall layout and connectivity.
Klutznick Co. and the city of Phoenix so far have been successful
fighting a lawsuit filed by the Goldwater Institute over tax
incentives. The conservative research organization filed a complaint to
stop the city from proceeding with a $97.4 million tax subsidy it had
awarded Klutznick for construction of the CityNorth mixed-use project,
near 56th Street and Loop 101. The Goldwater Institute initiated the
court action on behalf of six business owners, all claiming the
financial arrangement between the private developer and municipality
was unconstitutional and that they had not received similar benefits.
Maricopa County Superior Court ruled, however, that "the benefits
of the agreement serve a public purpose and, therefore, the first prong
of the (state constitution's) gift clause analysis has been satisfied."
The judge went on to say that the "contemplated benefits, particularly
the substantial tax revenues," were advantageous to the public and
would not likely be realized on that site in any other way.
The Goldwater Institute said it will appeal the decision.
When built out, CityNorth will include 5.5 million square feet of
retail, residential and office space. The company says it will generate
$1.9 million a year in economic benefits and create nearly 20,000 jobs.
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