On Monday, the Phoenix Historic Preservation Commission approved a proposal that would set aside $500,000 to preserve two iconic, 1920s-era downtown Phoenix skyscrapers. The proposal would also allow the developer to raze buildings on the south side of the block to make room for a future hotel.

Hansji Urban bought the Luhrs block for $28 million last year. The block was built by a pioneer-era Phoenix clan. The patriarch, German immigrant George Heinrich Nicholas Luhrs, built the 10-story Luhrs Building in 1924 and he broke ground on the 14-story Luhrs Tower in 1929. The area is bound by Central Avenue, First Avenue, Jefferson Street and Madison Street, nestled between future developments, CityScape and the Jackson Street Entertainment District

The City Council could consider the proposal as early as June. If approved, Hansji Urban would get $500,000 in city grant money to help preserve the vacant Luhrs Building, which needs many repairs. The plan would also protect most of the one-story span along Jefferson Street that links the Luhrs Building and Luhrs Tower. Other buildings on the south side of the block - including a 1950 parking structure and a 1951 Luhrs Tower annex that faces First Avenue - could face the wrecking ball.

The firm plans to invest $1.3 million to rehab the outside of the vacant Luhrs Building, which needs the most repairs. Luhrs Tower is occupied and needs less work. Bringing the Luhrs Building up to code and other upgrades could cost another $8 million. Ultimately, Hansji Urban, which is affiliated with an Irvine, Calif. hotel developer, plans to build a hotel on the south side of the block. The proposed hotel, which would take a year and a half to plan, could rise as more 200 feet tall.

On March 19th, the Phoenix City Council will most likely approve a great new urban-chic boutique hotel called aloft. Nestled between 44 Monroe and CityScape, this 107-room W Hotel brand will sit on the SE corner of Central Avenue and Adams. Of particular interest to us Downtown Phoenix residents is that its ground floor retail could include a much needed downtown drug store. We aren’t the only ones excited- check out this You Tube video about aloft in Green Bay.

Other aloft brand hotels are scheduled to open in the Phoenix metropolitan area:
Chandler - Opening February, 2009
Glendale - Opening October, 2008
Phoenix-Airport - Opening March, 2009
Tempe - Opening January, 2009

On Monday, the Federal Aviation Administration ruled that the three-square block Downtown Phoenix project, CityScape, poses no risk to aircraft that fly in and out of nearby Phoenix Sky Harbor International Airport. Monday’s FAA ruling helps clear the way for one building, with hotel rooms and condos, to rise as high as 510 feet.

“We initially issued a Notice of Presumed Hazard because the structure heights exceeded several FAA obstruction standards,” said FAA spokesman Ian Gregor. After further review, the agency concluded that the projects “punches up” into an airspace buffer, but doesn’t have a negative effect on flights.

CityScape is real and is going to happen! Construction begins next month, first move-ins 2009, and completely finished by 2011. There will be 1200 condominiums, 2 boutique hotels (400 beds), 600,000 sf Class A office space with Wachovia Financial as their anchor tenant, and 250,000 sf retail/restaurant space including AJs Fine Foods and PF Chang’s. At $900 million, this is the largest private investment project in the history of Downtown Phoenix. We are so proud of you, Phoenix!