TEMPE, AZ — The century-old Tempe National Bank building and the Tempe Hardware Building will soon be home to new businesses as the city fields offers for tenants to lease the spaces on Mill Avenue.
Tempe acquired the bank building, built in 1912, in January and the neighboring hardware Building, built in 1898, in late June after the city council recently approved an ordinance authorizing the city to lease the buildings.
ABC15 got the first look inside the historic buildings, located at 544 and 546 S Mill Ave., since the city took over.
The hardware building retains its original flooring, and both buildings feature exposed brick throughout. Two vaults inside the bank building remain intact. The spaces can accommodate as many as nine leases, with all going at market rate.
Josh Rutherford, the city's Special Projects & Economic Development Administrator, said talks are already underway with at least one tenant for the hardware building, and the city wants to bring in retail or restaurant establishments.
"The main reason to purchase it was to preserve the history of these buildings in perpetuity," Rutherford said. "The second reason is to bring life back to Mill [Avenue]."
"What better way to do that than if the city owns and operates these buildings?" Rutherford said. "So we have a direct involvement on getting certain concepts within these buildings.
As for the timeline as to when tenants could move in, Rutherford said the city would prefer it to happen as soon as possible, but he noted these deals can take time to negotiate.
The redevelopment comes as the city, the Tempe Chamber of Commerce and the Downtown Tempe Authority work to drive more foot traffic along the Mill Avenue corridor. Businesses have cited rising rent, fewer customers and construction as reasons shops have closed or stayed away.
Downtown Tempe Authority President & CEO Lori Foster said 17 new businesses will open within the next eight months, dropping the downtown vacancy rate from 12% to 10%.
"So while it looks like we have a lot of vacancies, we have leases that are signed for those spaces," Foster said. "It will take them a while to tool up, but this is a great time to get into Mill Avenue."
Rutherford said the city is aiming to bring local businesses to the historic buildings, though he acknowledged the regional and national franchises operating on Mill Ave.
"A good mix between all three is healthy for your downtown, but you predominantly see local operators on this street," Rutherford said.
Rutherford acknowledged the struggles which businesses have faced on Mill in recent years, but said change is necessary to maintain a vibrant downtown corridor.
"I think you can always learn from businesses closing, but if your downtown is not evolving, there's probably something wrong with it," Rutherford said.
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