CATHERINE REAGOR

2 downtown Phoenix redevelopment projects get boost

Catherine Reagor
The Republic | azcentral.com

Redevelopment plans for two iconic downtown Phoenix buildings, both visible in the opening scenes of Alfred Hitchcock's classic movie "Psycho," advanced today.

The city of Phoenix picked P.B. Bell Cos. and Davis Enterprises to redevelop the historic Barrister Place building and the land next to it into a boutique-style, mixed-use development. The property is at the southeast corner of Central Avenue and Jefferson Street.

The Barrister Place Building, 101 S. Central Ave., was featured in the original “Psycho” horror flick. The city is asking its developers to preserve the downtown building's historic facade.

Also today, Maricopa County agreed to work with developer CSM Lodging on tax incentives for the redevelopment of the art deco Professional Building at the southeastern corner of Central Avenue and Monroe Street.

The city of Phoenix had offered Minneapolis-based CSM a government property lease excise tax, known as a GPLET, to redevelop the property into a hotel. But Phoenix wasn't able to complete the deal.

This morning, the Maricopa County Board of Supervisors voted unanimously for its Stadium District to negotiate with CSM for the economic-development incentive. A GPLET allows developers to avoid paying certain property taxes through deals that title their land and buildings to a government entity with an exclusive right to lease the property back.

"We are supportive of economic development deals that make sense, " said Shelby Scharbach, Maricopa County director of finance. "Phoenix has restrictions and wasn't able to make a GPLET work."

CSM purchased the 12-story Professional Building for $7.85 million in December and plans to spend $40 million renovating the long-empty building on the southeastern corner of Central Avenue and Monroe Street into a 165-room boutique hotel. Early this year, the developer said it planned to have the hotel open before the Super Bowl to be played in Glendale on Feb. 1, but that's very unlikely now.

Bill Upshaw, president of CSM Lodging, has called the Professional Building a "historic jewel in downtown Phoenix." His company has experience in renovating old buildings into boutique or high-end hotels. One example: Remaking a 19th-century train depot along the Mississippi River into the Depot Renaissance Minneapolis Hotel.

Phoenix's six-story Barrister Building opened as the Jefferson Hotel in 1915. Phoenix bought the building in 1990 and used it to house offices and the Phoenix Police Museum until 2010.

Scottsdale-based P.B. Bell and Phoenix-based Davis are working on a detailed plan for the building's renovation that will include preserving the façade.

"The Barrister Building is an iconic piece of downtown Phoenix history," said Mike Trueman, vice president of development for P.B. Bell.

This art deco building in downtown Phoenix, known as the Professional Building, is planned to be redeveloped into a boutique hotel, according to Minneapolis-based CSM Lodging. The group paid $7.85 million for the 12-story tower in late December.