Best way to use 100 acres in the West Valley:
a) Build a mall.
b) Turn it into some kind of organic farm.
c) Keep it as open space.
d) Build attractive, but practical low-income housing.
Those who chose the last option are thinking like developers around Goodyear. The star attraction — unless you’re a road easement fan — of Goodyear City Council’s first meeting of the year, scheduled for Monday, Jan. 6, was this agenda item:
“Approve the final plat for Prologis Commerce Park at Goodyear subdividing 112.38 acres into five lots and one tract generally located at the northeast corner of Bullard Avenue and Yuma Road, subject to stipulations.”
First question: What is Prologis?
According to its website, “Prologis, Inc. is a multinational logistics real estate investment trust headquartered in San Francisco, Calif. The company was formed through the merger of AMB Property Corporation and Prologis in June 2011, which made Prologis the largest industrial real estate company in the world.”
The idea here at a site near the Phoenix Goodyear Airport is a “master-planned industrial park,” with five buildings on those 112 acres. The location is about halfway between the Chewy warehouse and Microsoft data center.
Or, as marketing materials proclaim, “in the heart of the Goodyear business corridor.” That was a phrase you would not have heard, prior to 2017.
A brochure on commercial sales site loop.net promises would-be tenants:
Foreign Trade Zone capable
- 72% reduction in real property tax.
- 72% reduction in personal property(equipment tax).
- Duty deferral.
- Duty elimination.
- Reduced customs reporting entries.
- Capital gains tax incentives for investing in an opportunity zone.
- Temporary deferral for capital gains reinvested.
Permanent exclusion from taxable income of capital gains.
First, of course, the project must get approvals from city council.
Agenda materials show Katie Wilken, Goodyear’s planning manager, to be enthusiastically recommending approval with stipulations.
Prologis does not get a free ride, here.
The agenda states the company will be responsible for:
“25% of the cost of the full traffic signal at the intersection of South Bullard Avenue and West Yuma Road." And:
“25% of the cost of the full traffic signal at the intersection of South Bullard Avenue and the West Harrison Street alignment."
Prologis also must pay half of “the future median for West Yuma Road for the entire frontage of this development.”
What’s in it for Goodyear?
Construction will generate revenue via “payment of permits, construction sales tax and development impact fees,” according to the agenda packet.
“Longer-term fiscal impacts include increased demands for municipal services, the costs of which may or may not be offset by increased Property values/tax levies, city sales tax, state shared revenues and the increased demand for commercial and retail development.”
It all depends on what types of businesses end up here, but if Prologis Commerce Park at Goodyear comes to fruition, it could mean hundreds of jobs.
So is Goodyear turning into a giant industrial park? Hardly.
At its pre-holiday meeting, Goodyear City Council approved for PebbleCreek to move ahead with its ambitious housing plans:
“Subdividing 14.65 acres into 74lots.”
Coincidentally or not, the next phase of PebbleCreek is right across Loop 303 from the PV303 business developments.
Stay tuned for information on more residential projects.