Glendale says VAI Resort is moving forward despite split special election

Despite a divided result in last month’s special election, Glendale city officials say the $1.2 billion VAI Resort project is moving forward.

Voters rejected Proposition 401, a measure that would have amended the city’s general plan to rezone 10 acres for the resort’s corporate offices and parking. But they approved Proposition 402, which changes the land’s zoning rules to allow commercial development.

City leaders argue that Proposition 402 provides the legal authority to proceed, even without changes to the general plan. Glendale City Manager Kevin Phelps emphasized that zoning decisions carry legal weight, while the general plan is more advisory.

“If we were to say tomorrow that you can’t do that because it’s inconsistent with a planning document, we likely would face litigation and would not prevail,” he said.

But Phelps also said the general plan amendment works hand-in-hand with changing zoning rules.

“The city would not have had the right to create the zoning entitlements without changing the general plan,” he said.

Ultimately, Phelps said Glendale residents approved the key proposition needed to grant zoning rights to the VAI developers.

“The citizens of Glendale granted specific property rights to the developer of the VAI Resort, that’s irrefutable,” Phelps said.

Chelsey Heath/KJZZ

The VAI Resort, when completed, is projected to generate $32 million every year in new revenue annually for the next 25 years, according to the city.

The resort’s backers estimate the project will create more than 2,000 jobs and $2.2 billion in tax revenue over time.

But critics aren’t convinced the path forward is as clear as the city says. Mark Stapp — who has over four decades of experience in real estate development and directs the real estate development master’s program at ASU’s W.P. Carey School of Business — said the mixed outcome may leave the project vulnerable.

“Now, they’ve got to sit around and figure out what the heck they’re going to do about this, because there’s no clear path forward that I’m aware of,” he said.

Stapp emphasized the tension between the zoning change and the general plan’s designation of the land as parks and open space.

“To be able to pull a permit to construct a use, which is purely commercial, on something that is designated as parks and open space, you’re incongruous,” he said.

The labor group Worker Power organized the petition that led to the propositions being on the ballot, gathering more than 5,000 signatures.

More than 27,000 voters turned out for the special election, which was held after criticism of development fee waivers and previous zoning decisions tied to the resort.

Chelsey Heath/KJZZ

Meanwhile, construction on the resort continues. Glendale Vice Mayor Lauren Tolmachoff said last month that delays could be expected if both propositions didn’t pass, but city leaders remain optimistic.

“I think the voters got it right. I think they saw the importance of the VAI Resort in terms of creating revenue that can be used on public safety, parks, our library system and our roads," Phelps said.

Phelps said the city has brought on a consultant to help restructure the general plan. A revised version will go to voters in 2026.

For now, Glendale is pushing ahead — confident it has the legal ground to stand on.