Tempe Marketplace revenues are exceeding expectations as the shopping center nears the celebration of its first year of operation on Sept. 28, 2008.
Since opening last September, the center has generated more than $3.7 million in sales tax revenue for the city of Tempe, according to financial service reports. The center developers, Vestar Development Company, projected the shopping complex to generate $5.8 million over the first three years. Tempe Marketplace has already accumulated more than half in its first year of business.
The city of Tempe approved an incentive package for Tempe Marketplace upon its opening in 2007. The package included sales tax rebates for the shopping center that cap at $24.4 million to $26.7 million.
“[The] sales tax rebates are really incentives to get a developer to build something that you desire in your community,” said Jerry Hart, Tempe financial services manager.
The agreement states that Tempe will get only 30 percent of the sales tax revenues generated for the first 15 years or until Vestar hits the cap. Of the remaining 70 percent, a portion is used to pay off loans and the rest is paid to Vestar. This incentive is unique to other businesses in Tempe, where the city typically collects 100 percent of the sales tax revenue, said Hart.
Tempe Marketplace is located near the intersection of Loop 101 and Loop 202. The shopping center features more than 50 stores including Target, Old Navy, Best Buy and JCPenney located on the south side of the complex. On the north side, there is an outside mall called the “District,” which has small boutiques, restaurants, coffee shops, a Barnes and Noble bookstore and Harkins movie theatre. It also serves as a location for special events, performances and other community events.
Tempe Mayor Hugh Hallman has issued a proclamation declaring September 28, 2008 as Tempe Marketplace Day in honor of its first anniversary.
The proclamation states Tempe Marketplace’s significant contribution of economic and cultural value to the city of Tempe. The Mayor also highlights Tempe Marketplace and Vestar Development’s significant donations of time and money to various charitable causes and for providing many jobs for Tempe residents.
“We vow to continue this relationship and great partnership with the city of Tempe,” said Denise Hart, Vice President of Marketing for Vestar Development.
The original vision for the Tempe Marketplace was to provide an exciting, interactive retail, dining and entertainment center for the residents of Tempe and its surrounding cities, said Denise Hart.
“Since its opening last September, Tempe Marketplace has become a gathering place for all ages,” she said, “We consider it a ‘destination’ for family and friends.”
Tempe Marketplace will be celebrating its one year opening with a weeklong celebration beginning Sunday, Sept. 28, at 11 a.m. The festivities will kick-off with an Ultimate Birthday Party celebrating with local babies born on Sept. 28, 2007. Radio Disney will be at the Marketplace with games, balloons and fun activities for kids of all ages. The rest of the week will include a talent show, Arizona State University Battle of the Bands, and other exciting musical entertainment and giveaways.
