Danelle Plaza in Tempe, originally built in 1963, was once considered the heart of the city’s new downtown. However, over the years, the 14-acre site at Mill and Southern avenues has become dilapidated and a hotspot for crime. Despite various attempts by developers to rejuvenate the plaza, most of the lots remain empty or occupied by vacant storefronts, with unhoused individuals being frequent visitors. Now, local developer Eric Guina, along with Desert Viking and the city, own enough lots to potentially redevelop the site, marking the first time anyone has had enough clout to proceed effectively.
Guina and Desert Viking have a history of working on similar rundown properties in the Valley, with Guina successfully transforming a failed Section 8 facility into the Atwater Apartment complex. They are looking at reviving Danelle Plaza in a similar manner. Guina’s revitalization efforts started with renovating Bobby E’s Car Wash, bringing lights, art, and increased traffic to the area since its reopening in 2020. The car wash is seen as a catalyst for broader redevelopment at the site, potentially curbing disorder and setting the stage for a larger overhaul.
Despite the progress made by Guina and Desert Viking, there are still challenges ahead. The lack of a design plan means that they cannot secure the city’s 46% share of the plaza, which was gradually acquired by Tempe starting in the late 1990s. The lingering issue of holdout property owners expecting a big payday has prevented any meaningful progress for years. While the developers have managed to purchase some of the remaining lots, it is not yet enough to overhaul Danelle Plaza without the city selling its share to them. This process is expected to take several years.
The troubled history of Danelle Plaza can be traced back to its development in the 1960s. The area saw initial success but faced challenges when the city decided to reinvest in the existing downtown rather than establishing a new one at the plaza. Over the years, various businesses tried to establish themselves in the plaza, but most failed as economic factors and changing consumer behavior led to its decline. Today, over half of the lots at the site are empty, generating numerous calls related to homelessness and crime, making it a longstanding issue for the community.
The current efforts by developers like Guina and Desert Viking offer a glimmer of hope for Danelle Plaza’s future. By focusing on the car wash as a starting point for revitalization, they aim to stabilize the area and create a platform for broader development. However, there are still uncertainties and challenges to overcome, such as finalizing a design plan, negotiating with remaining property owners, addressing environmental concerns, and navigating political opposition. Despite these hurdles, the developers remain committed to transforming Danelle Plaza into a transformative project that could potentially rejuvenate the site after years of decay.
