Mold Remediation in Tempe, AZ

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Tempe's Mill Avenue experiences frequent turnover. Businesses move in and out as the crowds of students from the nearby Arizona State University campus ebb and flow throughout the year. But recently, two Mill Avenue restaurants have shuttered.

Fuzzy's Taco Shop served its last customers on Dec. 8, and a day later, Bang Bang was officially served a Notice of Retaking Possession. Here's what to know about the latest spots to leave Mill Avenue.

Fuzzy's Taco Shop

Casual Baja-style Mexican food destination Fuzzy's Taco Shop has closed its Mill Avenue restaurant. According to a sign posted to the front gate, the restaurant closed at 7 p.m. on Dec. 8. The restaurant's phones and online ordering have both been shut off.

"Thank you, Tempe, for all the great years with us here on Mill," the sign reads in part. "You can still have our great food at Fuzzy's Taco Shop in Gilbert."

Fuzzy's served all-day breakfast, tacos, nachos, quesadillas and giant margaritas in a bright and colorful space located just south of Third Avenue. It is part of a national chain that started in Texas. The Gilbert restaurant, located on Williams Field Road, is now the only remaining location in Arizona.

Bang Bang Tempe

Bang Bang

Sushi restaurant and nightclub hybrid Bang Bang has closed on Mill Avenue. A sign posted to the door shows that it might have been less than voluntary.

As of Dec. 9, "the landlord retook possession of the premises," the notice says. The action was taken "as a result of a default by tenant under the terms of the lease."

The Asian-fusion restaurant, bar and electronic dance club is originally from San Diego, where it first opened in 2013. In Dec. 2023, it opened in Tempe, on the corner of Mill Avenue and Fifth Street. But now, after almost exactly a year, the flashy spot is no more.

Metro Phoenix is growing into a major hub for the production of semiconductors, which are used to power all sorts of electronic devices, from cell phones and computers to aircraft and power plants.

But the local industry will take a hit, as Microchip Technology plans to close a chipmaking factory or “fab” in Tempe in an effort to cut inventory, reduce expenses and adjust its manufacturing capacity to meet customer orders. The closure was announced in early December by Steve Sanghi, the company’s longtime former CEO who has come out of retirement on an interim basis to guide the corporation.

Microchip expects to have the Tempe fab closed by around September 2025. Here are answers to more questions regarding this move:

Question: Who is Microchip Technology?

The Chandler-based company is one of the largest and most valuable corporations headquartered in Arizona. Microchip’s stock-market value or worth on Wall Street has fallen but still hovers around $32 billion. Only a handful of other local corporations including copper-miner Freeport-McMoRan and Scottsdale trash hauler Republic Services are larger.

Where is the Tempe factory or fab located?

It’s in an industrial area on the west side of the city at 1200 S. 52^nd St., not far from Phoenix Sky Harbor International Airport.

Is this Microchip’s only chipmaking fab?

No. The company has similar plants in Oregon and Colorado, and in other nations. Of the three U.S. facilities, the Tempe fab is the smallest at 388,000 square feet. Size and potential CHIPS and Science Act funding made it the more likely candidate for closure.

In other words, Microchip has preliminarily qualified for $162 million in federal grants under the CHIPS Act but those funds, if the company takes them, were destined to expand production and employment at the Oregon and Colorado plants.

Is there a chance Microchip might not accept $162 million in federal money?

Yes. Interim CEO Sanghi said the company already has more manufacturing capacity than it can use. At an investor conference at the Phoenician hosted by UBS this week, Sanghi said the company has tabled CHIPS Act negotiations with the government.

He also vowed a rigorous top-to-bottom review of company operations over the next 90 days, with an aim of getting costs better aligned with revenue. The review will look at ways to pare Microchip’s bloated inventory, re-evaluate its supply chain, reconnect with key customers and more.

How many people work at Microchip’s Tempe fab, and what will be their fate?

The company expects 500 employees there will be affected, of the roughly 2,300 workers that Microchip has in the state. Sanghi said affected workers will be offered positions at other Microchip facilities but he expects only about 15% will accept. That means more than 400 could face layoffs down the road.

Incidentally, Microchip ranked 74th in this year's Republic 100 special report on largest nongovernmental employers.

Is Microchip profitable?

Yes, but the company’s financial performance has declined sharply from prior years. For example, Microchip said it earned a profit of $207 million over the first six months of the current fiscal year through Sept. 30. That's down from $1.33 billion over the same six-month period last year. Sales slumped about 47% over the same stretch.

Is this the only stumble lately for chipmakers in Arizona?

Actually, no. While Taiwan Semiconductor Manufacturing Co. continues to get its massive north Phoenix complex ready for commercial production early in 2025, Intel Corp. also is facing financial problems and recently announced 385 layoffs at its fab complex in Chandler.

However, Intel did recently qualify for around $7.9 billion in CHIPS Act grants to support that operation and those in other states, and it plans to accept the funding.

Reach the reporter at russ.wiles@arizonarepublic.com.

The cities have amended their 30-year-old agreement to resolve lawsuits while making way for development with restrictions.

PHOENIX — A dispute over land development between the City of Phoenix and the City of Tempe has now been resolved.

The cities disagreed over what could be built on land near Priest and Rio Salado Parkway, citing a 1994 intergovernmental agreement between Tempe and Phoenix. Now, the cities have agreed to an addendum to that agreement.

RELATED: Phoenix mayor doesn't support using taxpayer funds for Coyotes arena

The 46 acres of land was slated to become an entertainment district housing a new Coyotes arena before voters rejected it in May 2023.

Weeks before that vote, the City of Phoenix sued Tempe arguing multi-family housing wasn't allowed to be built there based on the 30-year-old agreement because of noise from Phoenix Sky Harbor Airport and concerns that residents who lived there would sue.

"We receive federal funds, and one of the things we guarantee to our federal government is that we will try to protect the airport," Phoenix Mayor Kate Gallego told 12News. "People have tried to shut down airports near their homes, and so that's why the FAA really pushes us to protect the airport from new residential development. So we were fulfilling our obligation to the federal government."

Tempe filed a counterclaim, according to a report prepared for Tempe City Council, arguing Phoenix also violated the agreement.

That started what Tempe Mayor Corey Woods said was a months-long journey to get to the addendum in which Tempe agrees to not have any single-family homes on the land, requires any multi-family housing on the land to be rental only, and have noise insulation, in addition to other requirements.

"If someone is really feeling they can't sleep, they'll have an easier way to be able to move so we feel like Sky Harbor can continue to grow," Gallego said.

In the amendment, Tempe cannot oppose the long-term plan for the airport, including a new terminal. However, Phoenix agreed Tempe could object to any proposed fourth runway at Sky Harbor.

"We've worked very hard to get something that will settle these lawsuits," Woods said. "It will allow both communities to move forward in their best interests, along with continuing to work as community partners."

As for what will become of the land, Woods said an analysis and remediation of the site is needed.

"We're going to work together with our community and city staff to figure out what might be the best thing to go on that property because clearly, it's not going to remain the way that it is in perpetuity," Woods said.

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Phoenix and Tempe city councils have both unanimously approved measures that clear a path for apartments to potentially be built on a 46-acre piece of land in Tempe once considered for an arena for the Arizona Coyotes hockey team.

During a Dec. 4 meeting, Phoenix City Council approved an amendment to an intergovernmental agreement between the two cities regarding noise mitigations and flight procedures. Tempe City Council had already approved the measure at a Nov. 21 meeting.

Going back to 2022, the two cities were at odds over the Coyotes' proposed mixed-use development, which would have been anchored by a 16,000-seat arena to be used by the now-defunct NHL franchise. The proposed development also included 1,600 luxury apartments.

Phoenix claimed that by allowing apartments to be built on the site, which was near the end of a runway at Phoenix-owned Phoenix Sky Harbor International Airport, Tempe was in violation of a 1994 agreement between the cities.

Phoenix even filed a lawsuit in 2023 asking a judge to stop the development from going forward. The proposed Coyotes development, which Tempe Council initially approved, went to a public vote for residents and was defeated. Team owner Alex Meruelo then set his sights on a different parcel of land in north Phoenix for the new arena, but failed to get the deal done, resulting in the sale of the team to new owners in Utah.

Tempe officials still had their eye on developing the city-owned land on the northeast corner of Priest Drive and Rio Salado Parkway, just south of the Salt River, so it worked with Phoenix to come to a compromise.

“We have had different interpretations of the terms of this agreement,” Phoenix Mayor Kate Gallego said during the Dec. 4 Council meeting. “We were considering legal action, and I’m thrilled that we have avoided that.”

The agreement allows for new residential units to be built in the area close to Priest Road and near the river, but it can’t be single-family residences. The units can only be apartments that can be rented, according to city documents.

“This compromise will end the lawsuits and provide new clarity for both cities," Tempe Mayor Corey Woods said during his State of the City address on Dec. 4.

Tempe agreed to require any residential uses to have noise insulation installed before being occupied. In return, Phoenix agreed to end its legal action against Tempe.

The city of Phoenix had been concerned that if residences are built in the area, the new tenants would complain about being located close to where planes land and take off at Sky Harbor, possibly resulting in lengthy and costly lawsuits. Another concern was the possibility that it could force Sky Harbor to change how it operates.

“We positioned ourselves in a position where the city of Phoenix and Tempe are both protected, and we protected that economic engine that is Sky Harbor Airport,” Jeff Barton, Phoenix’s city manager, said during the Dec. 4 meeting.

The city of Tempe has not announced any formal plans to begin development of the city-owned land, which is currently a landfill, but Woods has made it clear that he would be interested in developing it into something that has more benefit to the city. The new agreement would apply to any future developments in that same area near Sky Harbor.

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TEMPE, AZ (AZFamily) — The city of Tempe announced on Tuesday it is cracking down on people who are illegally camping in the city.

Officials said in a news release that the city is implementing “strict enforcement” of its urban camping ordinance due to the June ruling by the U.S. Supreme Court that cities can ban homeless people from sleeping outside.

The justices said citing people for urban camping is not cruel and unusual punishment.

“When a person makes a major investment to start a small business or to move to a city like that, their expectation is the city is going to enforce the laws,” Danny Seiden, the president and CEO of the Arizona Chamber of Commerce, said regarding the ban. “We pay taxes, we expect the city to show up when we call, to clean up nuisances, to get dangerous people off our houses.”

Tempe passed its urban camping ban in 1997 and updated it in 2018. The ban makes it illegal for anyone to use public property as housing, including pitching tents or building shelters.

It also bans activities like making fires and putting down bedding for sleeping.

“Most people with the status of “homeless” are not there because of their choice. They would much rather have other choices," Robert McWhirter, a Constitutional law expert, said.

Those violating the ordinance will be offered outreach services and given a warning. After that, they will be cited for a class 1 misdemeanor.

“I mean let’s be real, it incentivizes measures to sweep this problem under the rug. That’s the point. People don’t like seeing homelessness and homeless people,” McWhirter said.

According to the most recent Point In Time Count, there are 266 homeless people in Tempe, a drop from 396 in 2020.

Tempe is just the latest city to crack down on homeless people camping.

Phoenix approved an ordinance banning camping near schools and parks in May and it went into effect in September.

Last month, Surprise passed an ordinance that banned sleeping in public places.

On Monday, the Mesa City Council, in a 7-0 vote, approved an ordinance that outlaws urban camping on all city property.

The moves also come as Arizona voters passed Proposition 312 in November, which allows property owners to apply for a refund from cities and counties if they are not taking care of illegal camping, loitering, public consumption or other nuisances.

“One thing they cannot do is treat them like they don’t exist. There is nothing humane about that,” Seiden said. “We want one, to respect people’s private property, encourage investment, and with that comes tax dollars that goes to things like treatment, that goes to things like transitional housing and allows people to donate and be more charitable.”

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