Tempe DRC approves Tempe Oasis hotel-to-apartment PAD for 142 units amid neighborhood parking, safety concerns

The Tempe Development Review Commission on June 9 approved a Planned Area Development (PAD) allowing the adaptive reuse of the former Tempe Oasis hotel at 1634 North Scottsdale Road into a 142-unit mixed-use apartment complex with a publicly accessible coffee shop at the southwest corner.

Applicant Deborah Silva of Camber and True Collective described the proposal as an adaptive reuse that keeps the existing buildings while converting hotel rooms primarily to one-bedroom apartments (130 one-bedroom units, 7 two-bedroom units, and 5 studios). The applicant said resident parking would be gated with 120 spaces behind gates and an additional 27 spaces along Scottsdale Road, and proposed a parking-management plan that assigns resident spaces and keeps some public parking on Scottsdale Road.

Senior planner Robert Manalilo reviewed project history and PAD standards, noting the site was upzoned in 2022 under resolution R2022.12 and that the PAD proposes a density increase to 45 dwelling units per acre (project total 142 units), a maximum height of 35 feet (project tallest portion 27 feet), and reduced lot coverage and landscape percentages relative to prior standards. Manalilo summarized parking by code: the multifamily layout would require 255 vehicle spaces under standard code; the PAD proposes custom parking factors and the project provides 147 vehicle spaces. Bicycle parking proposed (134) is slightly below the code requirement (138). Staff told the commission it received a neighborhood meeting with about 20 attendees and some emails/phone calls both in support and expressing parking concerns, and recommended approval subject to conditions including the vehicle and bicycle parking analysis and development plan review.

Several commissioners pressed the applicant and the project traffic consultant on parking assumptions. Traffic engineer Chris Williams (Y2K Engineering) said the team used Institute of Transportation Engineers (ITE) trip- and parking-generation methods and the submitted parking study evaluated weekday peak conditions; he said the study indicates a peak demand on the order of roughly 139 spaces for the combined residential and commercial uses and noted the project’s proximity to Scottsdale and Tempe transit corridors and ride-hail options. Commissioners cautioned that ITE averages may not reflect all local conditions if many units are occupied by drivers or by full households; staff and the consultant acknowledged the uncertainties and described the submitted study and peak-condition methodology.

At public comment, Lane Carowway, a long-time north-Tempe resident, urged denial, citing the site’s prior history as a problematic hotel and expressing concern about crime, homelessness and neighborhood parking spillover; Caroway also alleged without corroboration that the property owner had previously run a federally shut-down Native American treatment center. The applicant and consultant responded to parking concerns and described security measures proposed for the site. Staff also noted SEPTED and development plan review comments, including proposed improvements to the south alley wall and additional security design elements.

A motion to approve item 5A carried; the motion passed with Commissioner Forte recorded in opposition. The approval allows the applicant to proceed to development plan review and building-permit submittals with the PAD standards and the nonstandard condition that the parking and bicycle analyses be satisfied as part of the project record.

Next steps include development plan review, satisfaction of outstanding SEPTED/security comments and the normal building-permit process; any substantial change to the approved PAD standards would require a PAD amendment before the commission.