Despite concerns, feds encourage Chinese investment in Arizona

Phoenix Business Journal - by Mike Sunnucks Phoenix Business Journal

Is Phoenix prepared for the Chinese dragon?

Spurred by economic growth and increasing wealth, China is primed to expand its foreign investments into the U.S.

The U.S. Department of Commerce and the Bush administration are bullish on that notion. They want to attract more foreign direct investment into the U.S. from China and other emerging global markets, and they are aggressively promoting that idea among economic developers in Phoenix and other areas.

Greater Phoenix Economic Council CEO Barry Broome said a significant part of that effort focuses on China investing in U.S. real estate, businesses and facilities such as manufacturing plants and distribution centers.

China is a major exporter to the U.S., running a $256 billion trade deficit in 2007, according to the U.S. Commerce Department. China is Arizona's third-largest export market, behind Mexico and Canada.

China, Russia and India have burgeoning wealth, with a growing number of millionaires and private entities flush with cash to invest.

The weak dollar also is encouraging foreign investment in the U.S. because the British pound, euro and other currencies go a lot further here.

Broome said the Bush administration wants to attract more of those investments to the U.S. and is recruiting regional and state economic developers to be part of a new push for foreign direct investment.

"They are really licking their chops," Broome said.

He said GPEC has been focusing its efforts on Europe, Japan and Canada, and is figuring out whether to jump onto the China bandwagon.

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Retail project set for former Earnhardt Ford site

Phoenix Business Journal - by Jan Buchholz Phoenix Business Journal

The southwest corner of Rural and Baseline roads in Tempe looks radically different after an eight-week demolition process that will make way for a 147,000-square-foot Lowe's home improvement store and other retailers.

Earnhardt Ford had been a mainstay at the intersection since 1976. But the Earnhardt family decided to consolidate Ford sales at its Chandler location on

Orchid Lane last year and placed the Tempe property on the market.

"We had a lot of interest, and we wanted to sell it to someone who would do something good for the community and someone we could deal with in a quick manner," said Jim Earnhardt, president and co-owner of Earnhardt Auto Centers.

Arizona Commerce Department projects flat job growth through 2009

Written by The Business Journal of Phoenix - by Mike Sunnucks

Job growth is projected to be flat for 2008 and 2009 in the Phoenix area and statewide, with declines in construction and financial services but gains in mining, tourism and medical care.

A new economic forecast expects state job growth to come in at minus 0.5 percent for 2008 and 0.1 percent for 2009, according to the Arizona Department of Commerce. The state agency projects the same figures for the Phoenix metro area.

In 2007, the state posted 1.2 percent job growth; the Valley, 1.3 percent.

The down housing market continues to hit the regional economy.

The construction industry is expected to lose 10.6 percent of its jobs in the Valley in 2008 and 2.9 percent in 2009. Financial services jobs in the Phoenix market are expected to drop 2.7 percent in 2008 and 1.0 percent in 2009.

Mining jobs statewide are projected to grow 16.6 percent in 2008 and 8.4 percent in 2009, according to the report.

Large-Scale Mixed-Use Project in North Scottsdale

Written by Phoenix Business Journal.

{Despite delays and legal wrangling by a competitor, Westcor has prevailed in its attempt to secure a 112-acre parcel of state-owned land near Scottsdale Road and Loop 101 in North Scottsdale.

Westcor, the oldest and most prolific retail developer in Arizona, and its investment partners submitted the winning bid of $32 million for a 99-year land lease at an April 30 auction held by the Arizona State Land Department.

The auction originally was scheduled in January, but was scuttled after the Thomas J. Klutznick Co. filed documents in court questioning the legality of the bidding process.

Klutznick, a developer based in Chicago, is building CityNorth, a huge mixed-use project just to the west of the auctioned site. That company, in partnership with the Related Cos., apparently hoped to extend that development to include the auctioned site. A judge dismissed Klutznick's claims, filed through the company's associated Northeast Phoenix Holdings, in February.

Westcor is planning to build Palisene, a large-scale mixed-use project, on the leased site.

Some industry observers thought Westcor, a division of Los Angeles-based Macerich, might forgo the auction after the company announced a strategic partnership with DMB Associates. DMB is the developer of One Scottsdale Place, another big mixed-use development just to the east of the auctioned land. But by securing the land lease, Westcor obviously is moving ahead with plans for both locations.

Westcor's partners on the Palisene project are WDP Partners and Landmark Land Co.

WDP partnered with Westcor on the Promenade at Casa Grande retail project. Its principals are former executives of Westcor who left the company after the Macerich acquisition. Landmark is a Maryland-based company that develops golf courses and luxury resorts around the world, including the Doonbeg Golf Club in Ireland, the La Quinta Resort and Club near Palm Springs, Calif., and the Palm Beach Polo and Country Club in West Palm Beach, Fla.

Proceeds from the auction will be directed to a fund that supports Arizona's public schools.}