Published May 27, 2024

Why Peoria is next up for major growth in the Valley

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Written by John Sposato

Why Peoria is next up for major growth in the Valley header image.

Why Peoria is next up for major growth in the Valley

By Audrey Jensen 


Thousands of state land surrounding the TSMC plant under construction are part of Peoria's long-range master plan. This file photo shows the Carefree Highway looking east toward the TSMC construction site on January 23, 2022.

ANDY BLYE

Peoria is getting down to business with the state of Arizona to open up thousands of acres of land for future growth.

With the $40 billion Taiwan Semiconductor Manufacturing Co. next door and plans for a $2 billion Amkor semiconductor plant in Peoria, city leaders are positioning 8,300 acres of state trust land as the next major development hotspot in metro Phoenix.

In March, Peoria unveiled its future vision for growth and proposed changes to its 2040 general plan, a policy document that guides the long-term growth for the municipality, at a council study session.

The general plan changes are expected to be voted on by Peoria City Council in September following multiple neighborhood and planning commission meetings throughout 2024.

One of two major areas the city is eyeing is 1,621 acres along the Loop 303 just southwest of the Vistancia master-planned community, the large Amkor project that's set to bring 2,000 jobs and Vistancia's Five North commercial core.

This area will be designated as the North Peoria Gateway, which could include a mix of residential and commercial uses including shopping, education or health care along the Loop 303 from Pinnacle Peak Road to Lone Mountain Parkway.

Most of the North Peoria Gateway site is already located in Peoria except for 487 acres that the city plans to annex. The pre-annexation agreement, annexation and entitlement for the 1,621 acres are expected to go before planning commission by Q3.

Regional development hub from Loop 303 to SR 74

The city is also looking to turn about 6,700 acres of state land spanning from the Loop 303 up north to State Route 74 near the Phoenix-Peoria border into a regional economic development hub with a land designation called Peoria Innovation Core.

Peoria Mayor Jason Beck said the city's focus for the innovation core could be medical, engineering and manufacturing. He said there's a lot of similarities to the growth in Austin, Texas, and Phoenix — and that it would take decades to build out the site.

"Our goal is to have a combination of jobs from the tech industry and defense," Beck said. "This will give us the opportunity for the state, Arizona Commerce Authority, Greater Phoenix Economic Council and ourselves to recruit and retain companies from all over the world and bring them into this one singular area."

The city of Peoria has outlined two major areas labeled as North Peoria Gateway (NPG) and Peoria Innovation Core (PIC) for future commercial and business growth across thousands of acres of state trust land. These designated areas will be ideally located close to the Biscuit Flats area around the TSMC semiconductor plant.

CITY OF PEORIA DOCUMENTS

West of the state land in Peoria, the city said master-planned communities are entitled for about 30,000 total residential units at full buildout. Peoria has so far issued about a third of permits toward that 30,000.

TSMC, which is set to start production at its first fabrication plant by 2025, is also surrounded by thousands of acres of state trust land in a north Phoenix area called Biscuit Flats, much of which will also be auctioned off for residential and commercial development.

About 2,300 acres surrounding TSMC are being auctioned off this May for the buildout of a future technology center reminiscent of Silicon Valley or Hsinchu Science Park in Taiwan.

The city of Phoenix is also working with the state to designate about 8,500 acres of state land south of the Loop 303 and TSMC for 17,000 residential units, Peoria staff said at its meeting.

"It's important to show that the [Loop] 303 is absolutely an emerging area that is not only proximate to large economic generators but also thousands of housing units on either side," Peoria Planning Director Chris Jacques said during the March 19 meeting.

On the wish list: Peoria Airpark

Part of Peoria's strategy to build out the northern part of the city also includes the development of a Peoria Airpark for a general aviation airport and commercial and industrial park.

A preliminary study for the project estimates that this could generate 15,000 jobs and $15 million in annual tax revenue for the city, with a $3 billion economic impact. This airpark would be modeled after the Scottsdale Airpark, which serves as a base for more than 85 major companies and nearly 60,000 employees, according to the city.

Updating the city's general plan for these massive sites, which could see multiple auctions over time, is part of Peoria's efforts to attract more jobs for its residents and in turn generate more revenue and services. Beck said that right now, most Peoria residents leave the city to commute to work while some still see the municipality as a bedroom community.

"If I have a father or mother that has an hour or two more a day to spend with their families, the likelihood of them spending money in their city with their family increases exponentially," Beck said. "We need to think about that."

The city is strategically located close to TSMC and the fast-pace growth of commercial and residential along the Loop 303 in the West Valley. Farther west in Surprise, BNSF Railway Co. could also develop a 4,000-acre transportation and commercial hub.

Other than Amkor, other major projects underway in Peoria include the mixed-use office project called Stadium Point, which is set to break ground this summer, and a new lifestyle shopping center called The Trailhead, which will open later this year.

The city is also working with local business owners on new retail and restaurant concepts planned for downtown Peoria that will include a Caldwell County BBQ and a retail center modeled after The Churchill in downtown Phoenix.

Beck also highlighted the city landing a new American Leadership Academy K-12 charter school that's set to open in Vistancia in the fall of 2025 for 2,400 students.

"It is very difficult without strong educational ties to make sure we can recruit and retain companies," Beck said. "ALA for us was a huge win. It has really shown companies that the city is very focused on trying to make sure we have educational opportunities."

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