South Price Road Employment Corridor Study Alan E. Maguire The Maguire Company October 2013 City of Chandler Report The South Price Road Employment Corridor Introduction This report was commissioned by the City of Chandler in order to analyze and review the issues surrounding the City’s past and current planning and land use policies for the area generally known as the South Price Road Employment Corridor, hereafter the “Corridor”. The report includes a review of the historical development of the planning and zoning policies applicable to the Corridor; a review of the existing properties available for development in the Corridor; consideration of information derived from interviews with various City elected and appointed officials as well as members of the development community; a comparison of other similar areas; and the development of recommendations for the Mayor and City Council’s consideration. The report is not a comprehensive review of all of the planning, land use, and related economic / demographic issues associated with development in the southwest section of the City. It is a broad review of issues intended to provide one source of information to city policymakers as they consider public policy questions related to the Corridor. Background The City has a long history of thoughtful, constructive, and consistent planning. This tradition has facilitated the positive growth and development of the City and has undoubtedly contributed to its economic vitality. Over the last 20 years conditions in the City, the region, and the state have changed in many important ways. Since 1990, the population of the City has increased from 90,533 to 236,123 as of the 2010 Census. Total employment in the City has increased from approximately 34,000 in 1990 to approximately 122,000 in 2013. The total property tax base (full cash value) of the City has also increased over the last two decades from about $500 million to over $3 billion. In short, the City is a very different place than it was in 1990 and certainly a different place than it was a decade or two before that. The Corridor has been identified, in one form or another, and discussed in City planning and development documents since, at least, 1982. The 1982 Circulation and Land Use Element of the City's General Plan and the 1982 South Chandler Area Plan both identify the Corridor as a major employment area. The South Chandler Area Plan was the first planning document to include a focus on attracting high technology industries. By 1998, the concept of campus-like environments along the Corridor had been introduced into the City's planning documents. 1 The 2001 General Plan further refined City policy by including an objective to promote and protect the Corridor for "large high-tech corporations in a single-use, campus-like environment." through policies that “protect the corridor from land use encroachments such as general industrial parks and subdivisions, warehousing, distributorships, other general industrial uses, and residential development which would otherwise compromise the function and integrity of this corridor.” In the 2001 General Plan, the Corridor is described as “[t]hat area south of Willis Road, as depicted on the Chandler Land Use Map for that area… Its environment would be defined by single users such as high-tech manufacturing, research and development, and corporate offices in integrated campus-like settings on parcels generally not less than 15 acres." The City’s 2007 Next Twenty report also discussed the Corridor. The report reflected the economic development clichés and perspectives of the time, but did identify several important trends that were affecting Chandler then and that continue today. These include the City’s transition from a rapidly growing community on the periphery of the metro area into an integrated part of the region’s core economy. At the same time, changes in business models, driven in part by global competition, and technological innovation have led to changes in land uses and property development. Instead of a single-user, large parcel development, these changes have led to a greater focus on "a mixed-use environment that provides incubators and small spaces for start-ups". The introduction of the “innovation zone” approach responded, in part, to those changes. Chandler’s development as home to highly skilled, well-educated residents continues and serves as a major attraction for high value employers. As the economic and population base of the City matures, the City’s future decisions will have an even greater impact on the prosperity of the City and the region. Unforeseen in the Next Twenty report was the about to burst mortgage / housing bubble and the resulting international banking crisis and protracted economic sluggishness. Increased regulations have altered the conditions and availability of financing for new commercial and residential development. Conditions in the national and local housing markets and credit markets have combined to return the region to its long history of affordable housing prices. Commercial development activity is also returning, but with different constraints than before the crisis. The 2008 City of Chandler General Plan, which is currently in effect, maintains the existing policy preference for single-users on large parcels. It states that the Corridor “is recognized as the City’s premier employment corridor, which is reserved for single employment users such as high-tech manufacturing, corporate offices, and knowledge intensive employers in campus-like settings on parcels generally not less than 15 acres.” 2 In the Elements – Growth Areas section, Large Tract Growth Areas are stated to “constitute the City’s prime inventory of economic development acreage.” The Corridor is identified as such an Area with some restrictions. “Although considered a large tract growth area, the South Price Road Employment Corridor is reserved for large single-user campus employment, or as an alternative, an innovation zone ….” As such, the land use policies in this growth area are distinct from the other … large tract growth areas. Long identified as one of Arizona’s preeminent hightech industry magnets, South Price Road still offers choice, undeveloped acreage for employment.” Later, discussing Innovation Zones, the 2008 General Plan states that such areas “can be considered in the employment land use category. Opportunities to develop Innovation Zones may present themselves in designated growth areas such as the Large Tract Growth Area and Growth Expansion Nodes that accommodate employment uses. As Figure 10 shows, the South Price Road Employment Corridor may be particularly suited for an innovation zone….” It continues: “The ‘innovation zone’ concept is envisioned as a hub where research and industry intersect and benefit from close proximity to each other within a campus environment. Innovation zone campuses provide a setting for research institutions such as universities, innovation-based companies including start-up businesses, large corporations and similar companies that relate to the innovation zone’s enterprises. Appropriate industries for innovation zones are knowledge-intensive industries such as high technology, biomedical, aerospace, renewable energy research and development and other similar emerging technologies. “A compatible mix of multi-tenant buildings with flexible office space for the types of uses identified above may be considered as a component of a larger innovation zone campus, with the understanding that a multi-tenant building alone does not constitute an innovation zone. A key component of an innovation zone is a centrally featured campus hub that contains common amenities that directly support businesses in the campus such as a conference center, research facilities and exhibition space.” Properties like the former Motorola site were envisioned as possible innovation zone opportunities. A hypothetical site plan was included as an illustration of the concept. While previous planning documents had included descriptions of land uses that were not appropriate for the Corridor, the 2008 General Plan more clearly defined those uses that would be allowed. In addition to high-tech manufacturing and corporate office, they included: • Advanced Business Services which was defined as companies such as advanced financial services, data centers, customer care centers, logistic centers and product design engineering firms. 3 • • Innovation-Based Companies which was defined as "[e]mployers in knowledge-intensive industries that research, invent and market new products and services. These companies are those in research-based industries such as high technology, biomedical, aerospace, renewable energy and similar research-based industries." Knowledge-Intensive Industries which was defined as “[h]igh technology, biomedical, aerospace, renewable energy research and development, and other similar research and development based industries.” Enhanced Infrastructure A key component in the development and subsequent success of the Corridor is its enhanced infrastructure. Since the late 1970s, Air Products has provided industrial gases, necessary for manufacturing processes, to the area. There are a number of competitive telecommunications services available and the Corridor is one of two locations in the Metro Phoenix area where all services terminate to "the Cloud." Electrical power is provided by the Salt River Project (SRP). The area is served by a closed loop system that provides redundant power and several existing substations currently service the area. SRP also anticipates the need for additional power within the Corridor in the future and is currently engaged in a line siting study to identify two new 230 kV routes and the location of two new substations. SRP expects to have the construction of the first phase of this project completed by late 2016. Water and wastewater services are provided by the City of Chandler Municipal Utilities Department. Base infrastructure and a dedicated amount of water, wastewater, and reclaimed water is provided to each site based on the uses identified in the Land Use Element of the City's General Plan and its Water Masterplan. If additional services are needed above the amount dedicated to each site, City staff gauges the intensity of the user on a case-by-case basis by evaluating the number and value of the jobs created and the additional infrastructure requirements necessary to service the project. The City has taken several steps to increase the infrastructure capabilities in the Corridor. Some of these improvements include: a new 16” water main on Price Road that parallels an existing 24” line to provide redundancy; rehabilitation and upgrades of a water production facility on South Dobson Road; a new 24” water transmission line; and a new sewer force main and pump station capable of transferring 20 million gallons per day. Additionally, a 24” reclaimed water line was installed along Queen Creek Road to provide additional reclaimed water delivery to the area. The City is also currently constructing 7 million gallons of additional wastewater treatment capacity. The City will start design of a new wastewater treatment facility at Queen Creek Road and Old Price Road this fall. Design will also be initiated in the fall/winter of 2013 for three additional aquifer, storage and recovery wells to provide additional reclaimed water storage and recovery for this area. 4 Reclaimed water is provided by either the City of Chandler or the Ocotillo Management Group, depending on the location of the site. Reclaimed water resources are primarily used for landscape purposes. South Price Road Employment Corridor Development History The development of properties along Price Road has occurred steadily since the 1980s. (See attached map and chart.) Motorola was the first major employer to develop in the Corridor in 1983. Aircraft Gear (now Iridium) followed in 1986. Park Ocotillo, located at the southwest corner of Price and Queen Creek Roads, was originally zoned in 1987 as part of the Ocotillo development's master plan. It was planned as a multitenant office and industrial park. It has subsequently been rezoned for similar uses. Three years later, in 1990, Orbital Sciences’ property was zoned. Although the single-user, campus policy had not yet been formalized, all of these parcels (with the exception of Park Ocotillo) still met those objectives. The City of Chandler has worked with Intel since 1979 when they developed the Chandler Boulevard FAB. Their purchase of a large parcel at the south end of Price Road solidified the Corridor's reputation as a major employment hub, with FABs being built in 1994, 2005, 2008, and in 2012. Intel's Ocotillo Campus has approximately 300 acres remaining for possible future development. Amkor located in the Corridor on two separate parcels totaling just over 18 acres. They constructed three separate buildings with the first one developed in 1995, followed by construction in 1997 and 2000. Over the years, various businesses have occupied the 130,000 square foot building Amkor constructed in 1997. In 2013 Digital Realty Trust (DRT) purchased the entire property with the intent of converting it to a data center and expanding its campus. In 1999, Schwab Data Center developed at the southeast corner of Germann and Price Roads. This site has been owned by several data center developers, most recently by DRT. Two expansions have occurred since the original construction at the site. Pinnacle Manufacturing (now Isagenix) also developed a nine acre site just south of Schwab in 1999. They are currently marketing an adjacent six acre site. Because of financing requirements, the development of this site would need to be platted separately so it is not tied to the original financing of the project. Americredit developed a 15 acre site on the northeast corner of Germann and Price Roads in 2003. Orbital Sciences occupied one floor of the building for approximately 18 months. Currently, 84,600 of the 157,000 square foot building are vacant. 5 Wells Fargo acquired an approximately 63 acre site on the Corridor and developed the first phase of their project in 2004. Approximately 28 acres remain to be developed. Kovach Industries’ site is approximately nine acres and that is divided into two parcels. The first parcel was developed in 2005 and the second one in 2010. Although the land use of this site was not among those listed in the 2001 General Plan, this site was zoned I-1 in 1985. Also in 2005, TSYS acquired the parcel just north of Wells Fargo. It was zoned for a data center and office building but has never been developed. The parcel has been sold and its zoning has been extended three times. In 2006, the 12 acre site just north of Americredit was zoned for office/manufacturing but is still vacant. In 2008, the Motorola site was redeveloped as Continuum and rezoned as an Innovation Zone. The Great Recession slowed development in the Corridor and it was not until 2012 that any new development occurred. That year, both Nextfort and CyrusOne developed data centers. CyrusOne is located on the northern portion of Continuum. In 2013, the 27 acre portion of Park Place that falls within the Corridor was zoned in conformance with the uses outlined for the Corridor in the City’s General Plan. Price Commerce Park was also recently zoned as Office/Industrial use for up to three users. There are pending zoning applications on two parcels: Park Place Phase II - a 38 acre parcel at the southeast corner of Willis and Price Road (within the South Price Road Employment Corridor). The developer has proposed uses consistent with the type of uses designated in the General Plan for the Corridor, but is seeking the ability to have multiple tenants or multiple users. Northwest Corner of Dobson and Queen Creek - a 34 acre parcel. The developer seeks nontraditional multi-tenant uses. Within the roughly 1442 total acres in the Corridor, approximately 153 acres (11%) remain zoned AG-1. These acres are within five differently owned parcels ranging in size from 10-38 acres. The balance of the property within the Corridor is either built, undeveloped with approved PAD (Planned Area Development) zoning, or partially developed with future construction phases anticipated. 6 As the properties along Price Road within the Corridor have developed, the City has approved development (primarily through PAD zoning) subject to a variety of zoning standards, conditions, and restrictions. These decisions have been guided by the City’s historical goals for the Corridor, the land uses and design plans proposed for individual properties by their respective property owners, and the mutual compromises reached between the property owners and the City to allow development to proceed consistent with the goals set out in the General Plan. The majority of these developments still meet the City's policy for the Corridor of a singleuser in a campus setting. The existing, in-place zoning within the Corridor includes manufacturing, multi-tenant, industrial, research, data centers, and other uses specifically outlined for the Corridor in the City’s 2008 General Plan. The current zoning status of the major properties with the Corridor is illustrated on the attached map and chart. The issue remains as to whether the policies that have propelled the City and the Corridor forward in the past continue to be appropriate for the years ahead or whether some modifications are appropriate. Development Trends in Similar Employment Areas The Corridor has been designated by the City as one of several employment centers within the City. However, its location at the edge of the City’s residential development, its freeway access, and high quality utility spine designate it as a prime employment location. Other communities around the country have endeavored to develop and redevelop similar employment centers. A review of the characteristics of some of these areas provides a comparison to the Corridor and may provide guidance to the City as it reviews its policies. The Research Triangle Park (RTP) in North Carolina is sometimes cited as a model for the Corridor. The RTP was envisioned over five decades ago and includes over 7,000 acres. The RTP is located amidst three nationally ranked universities (Duke, NC State, and U of NC at Chapel Hill). Development in the RTP has transitioned from “ad hoc strip malls or flex office developments” to “planned larger developments” to “best practices for mixed-use planning”. The RTP completed its second phase master planning process in 2012. That renewed planning process recognized that “in today’s world, many of the qualities that made the Park so successful in earlier decades run counter to trends in innovative industries…” Entrepreneurs and startup companies are integral to today's work environment so nurturing these types of businesses is becoming as important as attracting established companies in creating a successful economic development program. Planners for RTP do not believe large, single user sites are feasible for these types of businesses. Therefore, they wanted to ensure the update to their plan provided the flexibility necessary to address the needs of these smaller companies. 7 The Morris Township’s Honeywell Campus Redevelopment Area is located in northern New Jersey and is the location of the former Allied Chemical/Allied Signal (later Honeywell International) research facility. The site contains 147 acres and has approximately 1.1 million square feet of office space and research labs. Honeywell has left the facility and in 2012, local planning officials responded by modifying the land use plan for the property recognizing “a shift away from what were formerly large, single-use corporate campuses into what are becoming mostly planned, mixed-use projects that can better respond to the demands of the marketplace.” The proposed uses include consideration of townhouses and stacked townhouses. The Honeywell Campus redevelopment has many similarities to Chandler's Motorola site. The modification recommended for the redevelopment of the Honeywell Campus is very similar to the innovation zone concept that was first described in the 2007 Next Twenty report. This concept was incorporated into the City's 2008 General Plan and has been used to guide the rezoning of Chandler's Motorola site. The Legacy project in Plano, Texas, north-east of Dallas, encompasses 2,655 acres and over 50,000 residents. The master planning for this business environment started in the early 1980’s. The design of the plan was to create a corporate headquarters, campus-like development with significant landscape setbacks and strong transportation access to attract corporate headquarters. In 1998, after almost 20 years, Legacy developers added a "New-Urbanism" based urban living component to the master plan to support the employment base. Legacy Town Center within the business park added retail and housing to the employment center. Through the next 15 years the planning efforts have shifted to respond to the market demands that further the master plan principles. The planning for the site now anticipates a combination of large corporate operations, in addition to those already existing, urban retail and housing opportunities, hotels and strong transportation access. Specifically, the planning seeks to encourage Class A office space, “value added office space”, telecommunication hubs, medical office buildings and other uses. The “Legacy Town Center” planned development district has established building design, street, sidewalk, and streetscape regulations, prohibited and permitted uses, and signage regulations among other specific land use regulations and development standards. In summary, while none of these areas has the same combination of characteristics that distinguish the Corridor from other locations within the local region, there are some useful parallels and lessons that can be drawn from their experience. In each instance, changing market circumstances have led to evolving planning and zoning goals and objectives designed to maximize the benefit of development for the local and regional economy. These changes can be seen in evolving development and land use patterns across the country. It is noteworthy that while other similar areas have had to modify their land use patterns to incorporate housing options, substantial housing development is already located adjacent to the Corridor. New and innovative land use patterns are changing the use and re-use of property. The benefits of proximate location of related business activities and the desire of residents to work and live in close proximity are forcing the re-examination of zoning and land use regulations, in all forms. 8 Current Policies and Related Issues The City has long established goals, objectives, policies, and practices regarding development in the Corridor. Some of which are: Parcel Size Current City policy is to restrict the minimum parcel size in the Corridor to “generally 15 acres or greater”. This restriction has become an issue for potential zoning/ development of residual parcels and potential parcels splits due to changing needs of landowners and businesses. The treatment of “remnant” portions of developed parcels can be complicated by development, construction, and permanent project financing requirements in the current environment. Single User Current City policy is to restrict the use of buildings in the Corridor to a single user. This restriction has become an issue for existing, developed properties, as well as the potential zoning/ development of some of the remaining parcels. The limits on the permitted use of “remnant” portions of existing buildings and developed parcels can complicate development, construction, and permanent project financing in the current environment. Campus Setting Current City policy is to require “campus like” development patterns, with significant setbacks, landscaping, and mobility requirements. This can be a challenge on smaller parcels. High-Tech / High-Value Industries Current City policy is to encourage high-tech, high-value employment, of various types, in the Corridor. This can restrict the potential available tenants and employers for development on the remaining parcels or the redevelopment of existing parcels. Issues Surrounding Current City Policies Much has changed since the 1980s when the Corridor was first being developed. And while the policies and practices the City has used to shape the development of the Corridor have been successful to date, the reevaluation of some of these policies may be useful in light of a changing global economic climate and changing business practices. Additionally, the City’s current land use and development goals for the Corridor have been under increased scrutiny in response to the combination of general market conditions and development pressures. Several specific aspects of the City’s current policies / practices have been highlighted by recent activity. Most notable, the City’s current practices are creating challenges for: • Re-leasing and subleasing of “remnant” portions of existing large buildings in the Corridor (single user policy); 9 • • • Developing projects consistent with the Corridor’s planning objectives on smaller sized parcels (15 acres minimum policy); Accommodating appropriate uses better suited to multi-tenant building projects (single user policy); and Refining the allowed uses that advance the City’s vision and implementation strategies for the Corridor (2008 General Plan-South Price Road Employment Corridor and Innovation Zone concepts). The increase in smaller, more entrepreneurial businesses and their preference for “growing in place”, as well as the pressure from the local development community have led to this review of the City's policies for the Corridor. Recommendations The South Price Road Employment Corridor is one of the most desirable and valuable sections of the City. It is served by extraordinary utility services, is located adjacent to a dynamic, welleducated workforce, and is the site of several of the City’s best-known employers. It is well recognized as an employment center for higher wage, higher quality jobs in a convenient, attractive setting. Clearly, the past planning and land use policies of the City have largely supported and contributed to the current status of the Corridor. The broadly understood, if not specifically articulated, objectives of the City’s planning efforts in the Corridor are to maximize the Corridor’s potential as a location for concentrated, knowledgeintensive, high-value employment that fully exploits the areas enhanced infrastructure and location. Preserving and strengthening the crucial aspects of those policies is important for the future development of the Corridor. However, there may also be a need for some changes in order to meet the needs of businesses who wish to locate in the Corridor. Several principles are recommended to guide the City’s land use planning policy choices regarding the Corridor. • The campus-like environment of the Corridor should be preserved and actively enhanced. This can best be promoted by maintaining setback and intense landscaping requirements. These requirements preserve and enhance the “campus style” development that is a desirable attribute of the Corridor and helps create its sense of place. Additionally, the campus-like environment is attractive to large, single users and is only available in limited locations within the region. Preserving the campus setting will give the Corridor a competitive advantage over other locations. Preserving the campus-like setting does not imply a preference for low density development. Intensive utilization of the remaining, available, developable land within the Corridor will promote the dense, high-value employment the City seeks. Policies that facilitate more vertical construction or phasing projects on a parcel support greater 10 employment density. For example, initially installed surface parking areas could be replaced with structured parking as future development phases occur. • The “high value employment” reputation of the Corridor should be actively preserved and enhanced. The Corridor has been defined as an employment center since the 1980s and the City’s planning documents have repeatedly identified the general industry categories of preferred uses allowed within the Corridor. The City's past and current policies have contributed to the clustering of high tech, innovation-based companies within the Corridor. Clearly delineated uses will facilitate the City’s objectives for the Corridor, while providing reliable guidance to property owners and developers. There are other quality locations within the City that can meet the needs of businesses that do not fall within the industry categories identified for the Corridor. Therefore, the integrity of the Corridor can be maintained and these businesses can still locate within the City. • The employment density of the Corridor should be preserved and actively enhanced. This can be accomplished by establishing target employment / value levels for property in the Corridor. Higher value employment also maximizes the community, and regional, benefits of the nearby high value workforce. The existing nearby workforce reflects the past development of high value employment in the Corridor. That trend in turn supports and facilitates the development of future high value employment. The combination of attractive development, focus on high value industries, and intense utilization of land and buildings will tend to increase the value added in the Corridor. The greater the value added by the employment in the Corridor the easier it will be to preserve and enhance the positive aesthetic and employment attributes of the Corridor. For the most part, the preferred uses that have been identified in the City's planning documents remain relevant today. However, some of these categories are overly broad and consequently include uses that are inconsistent with the City’s objectives. For example, data centers were included in the list of preferred uses in the 2008 General Plan and can meet the single user, campus-like setting policies, however, they do not generate the employment density envisioned for the Corridor. The inclusion of data centers, and possibly other uses, should be revisited and the uses refined to limit their future development in the Corridor, except on already appropriately entitled land. • The aesthetics of the Corridor should be preserved and actively enhanced but there should be some flexibility for smaller parcels. The large parcel policy has reinforced and enhanced the “campus style” development in the Corridor. However, these same policies create significant challenges for developing smaller parcels and may make development of such parcels financially challenging. Specific clarification to the current policies should consider these situations. 11 • The aesthetics of the Corridor should be enhanced by the implementation of development standards applicable to the buildings in the Corridor. Enhanced development standards will ensure high quality structures and distinctively appealing sites. The city has effectively used this approach in other areas and circumstances elsewhere in the city. • Multi-tenant developments should emphasize a common theme or purpose. Allowing for multi-tenant buildings would allow the City to attract more entrepreneurial companies to the Corridor. However, to help promote the “single-user” and “campus style” goals for the Corridor, the business uses in such developments should remain consistent with the objectives of the Corridor regardless of parcel size. Additionally, to the extent feasible, multi-tenant buildings or developments that emphasize a common theme, such as common industry or employment base, will help maintain the character of the Corridor. Multi-tenant properties should be planned and developed around a central activity or purpose, such as an anchor tenant. This central purpose or anchor tenant should establish the overall character and uses of the project and reflect the types of business uses appropriate for the Corridor. • Greater flexibility should be allowed for the reuse of buildings. The City’s objective that original development of property within the Corridor be consistent with the City's long-held policies and practices should be maintained. However, remnant portions of completed projects or portion that are later vacated, should be treated differently in order to lease or sublease those portions in a timely fashion provided the proposed tenants reflect the types of businesses uses appropriate for the Corridor. Conclusion The City's long history of thoughtful, constructive, and consistent planning has allowed it to grow, prosper, and thrive, becoming one of the strongest local economic centers in the region, the state, and the nation. The South Price Road Employment Corridor has been an integral component in the City’s success. It has become one of the premier high tech and innovation hubs of the Southwest United States and many of the businesses located along the Corridor are among the nation’s leaders in these areas. Since the initial planning for the Corridor, much has changed in the means and methods of manufacturing, production, and business operations. The scale and means of production, as well as the organization and development of business activities, have changed as the result of 12 transformative innovation and technological advances. Given these changes, it is appropriate for the City to review its policies for the Corridor. The City's current policies for the Corridor have four main components. These are: identifying preferred uses as designated in the General Plan; promoting campus-like settings; having single users for each parcel; and promoting larger parcel size except within an Innovation Zone. It is the uses that drive the high value of jobs within the Corridor while the campus setting creates the sense of place that makes the Corridor physically attractive. It does not seem prudent or necessary to significantly modify these two requirements, although some refinement of the land uses should be considered. Changes in business development patterns have led other similar employment areas nationwide to alter their policies. These changes are relevant to the City's experience and suggest the need for some changes, especially as it relates to the single user requirement. Where development has already occurred, but the building or buildings are vacant or underutilized, and provided the uses are consistent with the City's policies for the Corridor, relief from the single user requirement should be considered for the use or reuse of these existing developments. Because there are unzoned parcels and vacant, undeveloped property in the Corridor care should be taken in structuring such relief. With regard to consideration of any such relief, it is important to consider that such actions may likely trigger re-zoning requests for parcels within the Corridor. Therefore, the decision to grant such relief should be considered only when the type and quality of any development proposal merits deviating from the long-established policies that have made the Corridor successful. Similarly, there are smaller parcels where, provided the uses are consistent with the City's policies for the Corridor and development can be structured to maintain the overall campus-like setting in the area, relief from the 15 acre requirement should be considered. Finally, any decision to modify the existing policies for the Corridor should be made only where the changes promote further development of the type and quality that have made the Corridor a success. 13 APPENDIX 14 SOUTH PRICE ROAD EMPLOYMENT CORRIDOR Development History Year Parcel/Project Acreage* Zoning Various 1983 1986 1987 Municipal owned sites Motorola Aircraft Gear (Iridium) Park Ocotillo 96 155 6 37 Various PAD w/ I‐1 uses I‐1 PAD ‐ Multi‐tenant/Commercial Office/Industrial/Commercial Retail corner 1990 Orbital Sciences 40 PAD Office/Research/Manufacturing 1994 1995 1997 1999 Intel (FAB 12) Amkor Amkor Schwab Data Center (DRT) 694 (total acres) 18 (total acres) 18 (total acres) 22 1999 2000 2003 2004 2005 2005 2005 2006 2008 2008 2010 2012 2012 2012 Pinnacle Manufacturing (Isagenix) Amkor Americredit Wells Fargo Intel (FAB 22) Kovach I TSYS Data Center & Office Sunstate (Vacant) Continuum Intel (FAB 32) Kovach II Intel (FAB 42) Nextfort Data Center CyrusOne Data Center 2013 2013 Park Place Price Road Commerce Park 9 (adjacent 6 for sale) 18 (total acres) 15 63 694 (total acres) 5 15 12 155 694 (total acres) 4 694 (total acres) 11 55 (part of Continuum) 27 38 PAD w/ I‐1 uses PAD ‐ Office/Manufacturing PAD ‐ Office/Manufacturing PAD ‐ Data Center/Electrical Substation PAD ‐ Office/Research/Manufacturing PAD ‐ Office/Manufacturing PAD ‐ Office PAD/PCO ‐ Office PAD w/ I‐1 uses I‐1 PAD ‐ Data Center/Office PAD ‐ Office/Manufacturing PAD ‐ SPREC/Innovation Zone PAD w/ I‐1 uses I‐1 PAD w/ I‐1 uses PAD ‐ Data Center PAD ‐ SPREC/Innovation Zone PAD ‐ SPREC Office/Industrial PAD ‐ SPREC Office/Industrial PAD - Planned Area Development PCO - Professional Commercial Office PDP - Preliminary Development Plan SPREC - South Price Corridor Employment Center *Acreages have been rounded 15 Park Place - 2013 - 27 acres zoned SPREC office/industrial Park Place II - 2013 - 38 acres Application in process for SPREC zoning (minus single user) Willis Rd. Dobson Rd. Aircraft Gear (now "Iridium") - 1986 - 6 acres Hard zoned I-1 Vacant - 2006 - 12 acres zoned office/manufacturing - Kovach I - 2005 - 5 acres; Kovach II - 2010 - 4 acres Hard zoned I-1 Americredit - 2003 - 15 acres Orbital Sciences occupied 3rd floor for 18 months. 84,600 SF of this 157,000 SF building is now vacant Amkor - 1997 Amersham, GE Healthcare and Marvell Technologies have all occupied this building over the past 10 years. This 130,000 SF building has been vacant for +/-3 years Germann Rd. Amkor - 2000 Amkor - 1995 Price Commerce Park 2013 -38 acres zoned SPREC Office/Industrial for up to 3 users Property zoned for TSYS data center and office building in 2005. Never developed and sold to investor who has extended zoning 3 times - 15 acres Wells Fargo - 2004 - 63 acres 1st of multiple phases constructed; 3 separate parcels make up the total acreage. Gila River Indian Community Price Rd. NOTE: Amkor properties are located on two separate parcels totaling 18 acres. *2013 - Property sold to Digital Realty Trust with intent of converting entire property to data center. Amkor will relocate to new site in East Valley. Nextfort Data Center - 2012 - 11 acres Schwab Data Center - 1999 22 acres - zoned for data center (became "365 Main" now "DRT") DRT Expansion 2011 Pinnacle Manufacturing (now "Isagenix") - 1999 9 acres - (adjacent 6 acres being marketed for sale) CyrusOne Data Center - 2012 55 acres Motorola - 1983 to 2008 now "Continuum" Science & Technology Park with SPREC and "Innovation" zoning Queen Creek Rd. Park Ocotillo - 37acres Planned multi-tenant office & industrial park (vacant); gas station currently exists on the hard corner - zoning first occurred in 1987 and then a number of times since, including multi-tenant and commercial retail. PDP has changed a variety of times to fit the market Zoning application recently submitted for speculative zoning - 34 acres Orbital Sciences - 1990 - 40 acres Motorola occupied a portion of this building in the late 1990's Intel FAB 42 - 2012 Intel FAB 32 - 2008 Intel FAB 22 - 2005 Intel FAB 12 - 1994 ´ South Price Road Employment Corridor Development History Legend Pending Zoning Request Acres (72 acres part of AG-1 Zoning Total Acreage) AG-1 Zoning I-1, PAD, PCO/PAD or Municipal Zoning Total Acreage Map created 10/24/2013 153 1,289 1,442 o ill t o c O . d R Dobson Rd. Willis Rd. Price Rd. Germann Rd. Gila River Indian Community Queen Creek Rd. o ill t o c O ´ South Price Road Employment Corridor DUnentitled Land Legend Pending Zoning Request Acres (72 acres part of AG-1 Zoning Total Acreage) AG-1 Zoning I-1, PAD, PCO/PAD or Municipal Zoning Total Acreage Map created 10/24/2013 153 1,289 1,442 . d R Dobson Rd. Willis Rd. Price Rd. Germann Rd. Gila River Indian Community Queen Creek Rd. o ill t o c O ´ South Price Road Employment Corridor Development Status Legend Pending Zoning Request (72 acres part of AG-1 Zoning Total Acreage) AG-1 Zoning Undeveloped Committed (Continuum, Wells Fargo and Intel) Zoned but not built Developed Map created 10/24/2013 Total Acreage Acres 153 469 152 668 1,442 . d R