Tempe, Arizona Approves 400 Units of Affordable Housing, Grocery Store Near Light Rail

The mixed-use development will bring a grocery store to an area known as a food desert.

1 minute read

November 19, 2025, 9:00 AM PST

By Diana Ionescu @aworkoffiction


Purple Phoenix light rail train pulling into outdoor station.

Dbrant06, CC BY-SA 4.0, via Wikimedia Commons / Wikimedia Commons

The Tempe City Council approved a 400-unit affordable apartment building and grocery store project at Dorsey Station, passing an ordinance that creates a planned area development overlay for the site. 

As Helena Wegner explains in the Phoenix Business Journal, the community has lacked a nearby grocery store since Food City closed in 2021. “The city bought the shopping mall property in 2021 for $10.7 million, the Phoenix Business Journal previously reported. It was then rezoned last year to mixed-use high density, which allows for housing and commercial space.”

360 of the units will be reserved for households making 30 to 80 percent of Area Median Income (AMI), and 10,000 square feet or more of the space will be earmarked for a yet-to-be-determined grocery store.

Monday, November 17, 2025 in Phoenix Business Journal

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