Demolition Begins for Tempe Project That Will Add 400 Affordable Apartments and Grocery Store

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Tempe Project

Demolition has begun at a former shopping center in Tempe as the city moves forward with a major redevelopment project that will bring hundreds of affordable housing units and a new grocery store to the area. The project, known as Dorsey Station, is expected to transform the site into a mixed-use community located along the Valley Metro light rail corridor.

City officials say the development is part of Tempe’s ongoing effort to increase affordable housing options while improving access to fresh food and public transportation.

Project

Dorsey Station will be built on several acres at 1320 E. Apache Blvd. and 1412 S. Dorsey Lane.

The development will replace the former Pollack Apache Center, which previously housed a Food City grocery store before it closed.

Demolition crews are currently clearing the site in preparation for construction.

Housing

The project will include approximately 400 apartments, with about 90% of the units designated as affordable housing.

According to the City of Tempe, apartments will be available to households earning between 30% and 80% of the area’s median income.

For households at the lower end of the eligibility range, annual income is approximately $27,000.

Housing DetailsInformation
Total apartments400
Affordable unitsApproximately 90%
Income eligibility30% – 80% of area median income
Lowest qualifying incomeAbout $27,000 annually

Grocery

In addition to housing, the development will include a grocery store.

City leaders say restoring access to healthy food has been a priority since the previous grocery store closed, leaving nearby residents with fewer shopping options.

The location’s proximity to the light rail is expected to improve accessibility for residents who rely on public transportation.

Approval

The Tempe City Council unanimously approved the development overlay ordinance for the project last year.

The redevelopment represents one of the city’s largest affordable housing initiatives and is designed to create a mixed-use neighborhood that combines housing, retail, and transit access.

Investment

The City of Tempe purchased the property in late 2021 for approximately $10.7 million following the closure of Food City.

Under the current development agreement, the city will retain ownership of the land while partnering with a private developer to complete the project.

Need

Local organizations say affordable housing remains one of the community’s most pressing challenges.

Officials with the Tempe Community Action Agency note that many residents are living paycheck to paycheck and face financial instability due to rising housing costs.

Projects such as Dorsey Station are intended to provide additional housing opportunities for lower- and moderate-income households.

Timeline

Construction is expected to continue over several years.

Project TimelineExpected Date
Demolition beginsUnderway
First residents expectedEnd of 2028
Full project completion2029 or 2030

According to Tempe Mayor Corey Woods, residents are expected to begin moving into completed apartments by the end of 2028, while the full development is anticipated to be completed between 2029 and 2030.

FAQs

What is Dorsey Station?

It is a mixed-use development with affordable housing and a grocery store.

How many apartments will be built?

The project includes approximately 400 apartments.

How many units are affordable?

When will residents begin moving in?

The first move-ins are expected by the end of 2028.

Who owns the property?

The City of Tempe will retain ownership of the land.

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