Tempe council advances redevelopment plan for Mill Avenue corridor with new apartments and retail space

The Tempe City Council approved nearly $26.5 million in construction contracts Dec. 19 to advance the Refresh Tempe redevelopment project along the Mill Avenue corridor from University Drive to Rio Salado Parkway. Officials said the project aims to revitalize the area with upgraded streetscape, infrastructure, and pedestrian amenities, including new trees, electric lines, and improved sidewalk accessibility.

Officials described the work as part of the Downtown Tempe Streetscape Improvement Project, which aims to revitalize the corridor with upgraded infrastructure and pedestrian amenities. The city said the project includes adding more than 120 new trees, installing new electric and irrigation lines, and improving sidewalk accessibility to enhance safety and convenience for pedestrians.

The contracts approved by the Tempe City Council on Dec. 19 total nearly $26.5 million and cover streetscape improvements along Mill Avenue from Rio Salado Parkway to University Drive.

The Refresh Tempe initiative represents the first major renovation of the Mill Avenue corridor in nearly 40 years, according to city officials. The project is being completed in phases, block by block, rather than all at once, to manage construction impacts and maintain access. In June, the city announced a temporary closure of southbound Mill Avenue from the south side of Fifth Street to the north side of University Drive, scheduled from June 16 to Aug. 8, to accelerate construction and allow crews to work more efficiently. Work hours during the closure were primarily from 2 a.m. to 4 p.m., with intermittent restrictions on nearby cross streets, according to city communications.

Despite the ongoing construction, officials emphasized that businesses along Mill Avenue remain accessible to pedestrians and continue to receive access by transit, bike, scooter, and wheelchair. Nearby parking garages have remained open throughout the project. Downtown Tempe representatives confirmed that transit services continue to operate, although some detours and temporary interruptions to the Streetcar have occurred. City and Downtown Tempe officials have repeatedly stressed that the corridor remains open for foot traffic and that the project is temporary but designed to improve the area’s long-term conditions.

The Mill Avenue redevelopment effort is part of a broader transformation of downtown Tempe, which includes both public infrastructure upgrades and private development. According to local reports, Rambler Tempe, a high-rise student-oriented housing complex near the corridor, began construction in March 2024 and is scheduled for completion in May 2026. This private development is seen as complementary to the city’s streetscape improvements, which aim to make the area more attractive for new businesses and residents.

Some business owners have expressed concerns about the impacts of the construction. A 2026 report from azfamily noted that several Tempe businesses found the ongoing work frustrating, particularly as more construction phases remain ahead. The report also mentioned that repaving was scheduled for the month following the report and would continue through July. City officials have acknowledged these concerns but maintain that the improvements will benefit businesses and visitors in the long term.

The Refresh Tempe project covers the Mill Avenue corridor from University Drive to Rio Salado Parkway and is a city-led initiative to upgrade streetscape and infrastructure. City records show that the project will include broader streetscape enhancements designed to make the corridor more attractive and functional. The phased approach to construction is intended to minimize disruptions while allowing for comprehensive upgrades.

The Tempe City Council’s approval of the nearly $26.5 million in contracts marks a significant step forward in the project’s implementation. The city has communicated that the improvements will support the corridor’s continued growth and redevelopment momentum, aligning with ongoing private investments such as the Rambler Tempe housing complex. Officials have indicated that the project will continue through multiple phases, with future work planned to further enhance the area’s infrastructure and pedestrian environment.