Apache Junction highlights 640‑acre state‑land site, pushes multifamily near downtown to attract retail

Apache Junction’s economic development director presented data May 6 highlighting a 640‑acre state‑land parcel near 24th Street and Ironwood Drive as a top recruitment target and urged the council to support housing that would make downtown more attractive to retailers.

City officials said the presentation, led by Economic Development Director Ryan Kaup, matters because the city is competing with neighboring East Valley communities for commercial and industrial projects that could bring jobs and sales tax revenue. Kaup described available land, vacancy rates and demographic data and said the city’s recent growth and affordability are selling points for developers.

Kaup told the council that “this piece of land about 640 acres at 24 and Ironwood…is, in my opinion, one of the top five economic development sites in the state.” He said Apache Junction’s overall build‑out is about 58 percent and that recent housing permit totals signal continued residential growth, which could support more retail and service businesses.

Kaup walked the council through commercial market statistics he said staff shares with brokers and developers: roughly 500,000 square feet of industrial inventory and 200,000 square feet of office space, low vacancy in older retail and a 10.5 percent overall retail vacancy rate contrasted with a 1 percent vacancy for buildings constructed in the last 15 years. He said the downtown area the city owns (about 10 acres) plus adjacent privately held parcels such as the Bella Flores site and East Valley Shopping Plaza are central to a downtown revitalization strategy.

Kaup also stressed infrastructure needs. “Getting the water, the sewer, these new roads…we were meeting regularly with SRP to talk about power,” he said, adding that staff is coordinating with SRP and Southwest Gas to prioritize utilities for development corridors. He said the economic development team will provide data and permitting support to potential investors.

Council members asked whether the city should continue converting commercial parcels to housing. Kaup replied that multifamily near downtown is often a catalyst for retail and hotel development, citing examples in other East Valley cities: higher residential density can make commercial projects economically viable. He also said the city is targeting medical office and manufacturing for job growth, and that the 640‑acre state‑land tract could attract advanced manufacturing because of its size and proximity to regional infrastructure.

Council members praised the presentation and asked staff to continue outreach to developers. Kaup said the city has submitted the 640‑acre site to regional economic development partners and plans continued marketing to brokers and site selectors.

The presentation was informational; no formal action was taken. Council discussion emphasized the need for infrastructure planning and careful sequencing of residential and commercial development to maximize the chances of attracting retail and employment projects.

Kaup said staff will return with project‑level updates as proposals move forward.