Old Town’s Next Act Is Coming

Old Town Scottsdale has had a rough year in the headlines. A brutal summer emptied sidewalks, and a string of Entertainment District shootings didn’t help. However, a flurry of big-money deals reported by the Scottsdale Progress suggests investors are betting heavily on the district’s future.

That tracks with a recent In Business Magazine cover story featuring Kevin Burke, the city’s senior director of economic development and tourism. His message is simple: Old Town doesn’t need to become a destination, because it already is one. Now, the money is following that idea.

Photo Credit: Arianna Grainey

The Deals Reshaping Old Town

On Oct. 6, Texas-based Terry Black’s BBQ paid $11.2 million for the historic Bischoff buildings on Brown Avenue. The restaurant plans to open there around this time next year.

Bischoff Building. Photo Credit: Scottsdale Progress

Days later, HonorHealth sold 3.1 acres at Second Street and Drinkwater Boulevard for $17.3 million. The buyer, the Empire Group, has filed preliminary plans for the Mondrian Scottsdale Hotel and Residences, a luxury hotel with a possible residential component. The name may ring a bell. The original Mondrian Scottsdale opened on Indian School Road in 2007 before eventually closing.

Meanwhile, the old Buca di Beppo at First and Main is nearly ready to reopen as Drake’s Hollywood, an Old Hollywood-style supper club.

More Homes, More Offices

The residential pipeline is just as busy. Four projects in the works, including a 232-unit building at Fifth and Goldwater, would add more than 500 homes to Old Town. In addition, George Oliver’s Arbor Old Town will bring more than 300,000 square feet of Class A office space to the area. The city is spending too, committing more than $42 million to Old Town this year.

Then There’s the Garage

Of course, all those new arrivals need somewhere to park. That brings us to the expansion at First Street and Brown Avenue, Old Town’s most divisive project.

Photo Credit: Scottsdale Progress

Construction began in late June and is now in its heaviest phase. Crews are craning precast panels into place overnight, and Second Street is closed through Nov. 16. The city expects the garage to be finished in summer 2027.

Mayor Lisa Borowsky remains a fierce critic, worried that closures during peak season will hurt nearby merchants. That fear has precedent: Mission owner Brian Raab says the lot’s original construction dragged on so long it put the restaurant’s previous owner out of business.

Our Take: Net Positive, If the City Delivers

Still, we think the garage will ultimately help more than it hurts. Sixty-seven percent of voters approved the 2019 bond, which set aside roughly $20 million for Old Town parking. More importantly, the deals above change the math. A luxury hotel, a destination barbecue joint, a supper club and hundreds of new homes all mean more cars downtown.

The construction pain is real, however, and the city owns it. It should keep closures as short as possible and steer some of its Old Town marketing budget toward the businesses living next to the cranes. Once the garage opens, it should be cheap, easy to find and well signed. If the city does all that, today’s eyesore becomes the infrastructure Old Town’s next chapter depends on.