After years of fighting, Phoenix and Tempe have reached a deal about future development near Sky Harbor International Airport.
Tempe wants to develop 46-acres of city-owned land once considered for a Coyotes hockey arena and entertainment district. Before Tempe voters killed the entertainment district idea in May 2023, Phoenix had filed a lawsuit claiming a 1994 agreement between the two cities meant no homes could be built near Sky Harbor’s flight path.
The new deal will allow Tempe to build multi-family housing only if it’s noise insulated and leased. In exchange, Tempe will not oppose long term expansion plans at Sky Harbor, like a new concourse and west terminal.
“This agreement, which is being memorialized as a formal amendment to the original IGA, will ensure that our incredible airport will continue to improve passenger experience through significant capital investments, expanded travel options, and growth that will benefit all of us,” said Phoenix Mayor Kate Gallego.
During his State of the City address on Wednesday, Tempe Mayor Corey Woods called it a good compromise and said, “We’ve secured a state grant to help fund a full evaluation of the land and the remediation it will require. This is the largest parcel of undeveloped land in our city. We have work – transformational, important work — to do. It’s work we will do together.”
The parcel sits in the high-noise zone, west of Tempe Town Lake, near Rio Salado Parkway and Priest Drive.
Both mayors and several council members thanked everyone involved in the negotiations.
Phoenix Councilwoman Kesha Hodge Washington, whose district includes Sky Harbor, said, “It shows that when there are disputes, we are able to sit down and actually come up with practical solutions. I'm grateful to see that this allows us to continue to further and expand our airport while ensuring proper development surrounds us.”
City Manager Jeff Barton told the council, “We positioned ourselves in a position where the city of Phoenix and Tempe are both protected.”
Highlights of the agreement expected to last 50 years include:
For all Tempe land in the 65 DNL contour (the high noise area):
- No single-family residential.
- Avigation easements/release of liability.
- Noise disclosures to warn residents of their exposure to high noise.
- No obstructions (FAA 7460 Approval).
- Support to address identified hazards to navigation.
- Tempe will not oppose, in any proceeding, Phoenix’s Comprehensive Asset Management Plan projects.
- Tempe understands Phoenix will continue to formally object to any incompatible use proposed in Tempe.
On Tempe-owned land in the 65 DNL contour, if Tempe allows residential, then Tempe will:
- Restrict all multi-family residential to lease only.
- Indemnify and defend Phoenix for any complaints about noise, vibrations, emissions or other disturbances.
- Require noise insulation.
- Ensure all stipulations and restrictions to run with the land.
- Agrees restrictions will apply to any land acquired by Tempe, except to the extent the land is already developed, or the land is one of the already entitled properties identified in the amendment and purchased through a GPLET deal.
For privately-held parcels in the 65 DNL contour, Tempe agrees:
- No new residential except for parcels identified in the amendment.
- To notify the Aviation Department of applications to pursue new or intensified residential.
- Submit a staff recommendation of disapproval on any such application.
- If the Tempe City Council still approves residential on any of the identified parcels, Tempe will stipulate landowner to noise insulate (NLR 25db) and equally share in legal defense fees should Phoenix receive a claim related to noise, vibrations or emissions.
Phoenix agrees:
- That both parties will dismiss their claims with each party bearing its own legal fees.
- To waive claims under the IGA for any past actions related to the IGA.
- To conduct periodic 65 DNL contour updates and enhance collaboration on noise issues.
- That it will not treat itself differently than Tempe regarding land uses in the 65 DNL contour.
- That it understands Tempe reserves its right to object to any proposed fourth runway.
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