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City of Tempe looking to revitalize old Danelle Plaza

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Posted at 10:25 PM, Jan 10, 2024
and last updated 2024-01-11 00:25:11-05

TEMPE — The City of Tempe wants to revitalize a historic shopping area near Mill and Southern avenues.

The old Danelle Plaza has been around since 1963, but it is running into disrepair right now because of what the city says are challenges relating to the scattered parcel ownership of the property.

Yucca Tap Room, a mainstay bar and lounge at the plaza, has been bringing in people from all over, but the plaza itself can be a lot more welcoming, according to business owners.

Redeveloping Danelle Plaza is what Yucca owner Rodney Hu says he has been working toward for years.

"I think if they do something different, they redevelop it, it'll encourage people to have a business here, more people will come here and it'll be something good," said Mo Aoufe, owner of Sky High Smoke Shop.

There are 52 parcels at the shopping center, which retailers purchased individually.

"A lot of different owners have all the different intentions and different ambitions of they want to do with the plaza or their building," said Hu.

"….Which sort of led to it sort of being almost in like a state of disrepair," said Tempe Mayor Corey Woods.

Now, after buying up most of the parcels, the City of Tempe and developers are closer than ever to revitalizing the plaza.

They envision a mixed-use project with a multifamily market rate, workforce and affordable housing, along with ground-floor retail and restaurants.

"None of the owners have invested in this plaza as long as my family and I have. We've been here for 50 years, and it's time to move into this next phase of what they want to do," said Hu.

"I would love for them to do something different. That would be awesome," said Aoufe.

There are not any specific plans yet for the project. The city says any future development would include Yucca Tap Room.

For business owners who are worried about their own future at the plaza, Woods says they should come to the city.

"If the business owners that are currently there would like to continue to operate at Danelle Plaza, those are absolutely conversations that we can have," said Woods.

The city council will hold a hearing next Thursday to move forward in the process.