The project, planned by Los Angeles-based Stockdale Capital Partners, totals 10.25 acres of land, though not all will be redeveloped. In total, plans call for the project to include 580,451 square feet of commercial space and 512 units of residential. The site is adjacent to where Stockdale is already developing the Marquee office building at Scottsdale Road and Shoeman Lane.

Mayor Jim Lane and Councilwomen Linda Milhaven, Suzanne Klapp and Virginia Korte voted in favor of the redevelopment. Vice Mayor Solange Whitehead and Councilwoman Kathy Littlefield instead supported waiting until the new city council is seated in January to take up the issue. Councilman Guy Phillips also voted against the project.

John Berry, founding partner of Berry Riddell and attorney for Stockdale, said the redevelopment is an opportunity to “transform an area with no character into Scottsdale’s next great neighborhood.”

Berry said through 2019, Stockdale has invested over $434 million in Scottsdale, and in 2020 the company invested $39.5 million. Stockdale’s projects include the reuse of the Scottsdale Galleria, the Ilume office building renovation in north Scottsdale and several developments, including the W Hotel, in Old Town Scottsdale. The Scottsdale Collection is expected to cost $450 million to develop.

During the council meeting, Lane said the Yari family and Stockdale have a strong history in Scottsdale, calling past investments by the firm into the downtown a “near miracle” when there was no interest in private investment in Old Town.

According to the applicant, the public art component of the project will be the largest public art contribution in Scottsdale’s history.

Shawn Yari and Steven Yari, managing principals of Stockdale, have been investing in properties in the area since the 1990s, and have since acquired 42 properties in the area.

The plans for the project include demolishing the Dakota nightclub, which is operated by Stockdale, but no tenants will be removed from their locations, Shawn Yari said in October. Much of the redevelopment plans include building several new lifestyle hotels in addition to existing restaurants and clubs, including the Mint Night Club and Maya Day and Night Club.

Yari said the coronavirus pandemic has affected timelines for the project, especially for hospitality elements like hotels, which have been most heavily impacted by closures due to Covid-19. Lenders have been hesitant to fund hospitality development as a result of the pandemic. Stockdale has proceeded with funding some of the development out of pocket, and will move forward with those elements when the lending market frees up.

Forward progress for the development is “at the mercy of the Covid environment,” Yari said, but the earliest that the first phase could begin construction is summer of 2021.