Peoria City Council Approves Sales Tax Deal to Bring Whole Foods to North Peoria

PEORIA, Ariz. \u2014 The City of Peoria has moved to lock in a high-end grocery anchor for one of the city's fastest-growing corridors, approving a development agreement that includes a sales tax incentive provision to secure the Travesio mixed-use project.

The project's anchor is a 30,000-square-foot Whole Foods at the southeast corner of Lake Pleasant Parkway and Yearling Road. The grocery store will serve as the centerpiece of a larger development that blends commercial retail with for-sale housing.

The development

Travesio is planned on roughly 22 acres of infill property at the southeast corner of Lake Pleasant Parkway and Yearling Road. The project will consist of a 6-acre commercial center and a 16-acre gated single-family residential subdivision with up to 50 for-sale lots.

The residential component is zoned at a density of four dwelling units per acre. City officials and representatives described the for-sale product as spanning different price points in order to add variety to the area's housing mix.

To make the project possible, the City Council approved a rezone from Suburban Ranch to a Travesio Mixed-Use Planned Area Development designation. The site was annexed into Peoria in 1989 and received its current zoning in 1991.

The deal

The development agreement is with developer SimonCRE C90 III. Under the terms, the developer has agreed to build public infrastructure that will be reimbursed by the city. The agreement also includes a sales tax incentive provision that the council used to close the deal.

Along Lake Pleasant Parkway, the commercial area is also expected to include a drive-through restaurant, limited to a single such location. The commercial and residential components are designed to share the same style and theme to create a cohesive development.

How it came together

The path to the deal began with the underlying land. Homebuilder K. Hovnanian acquired a larger 72-acre area for $30.6 million in an Arizona State Land Department auction in early 2025. The Travesio site is a portion of that acquisition.

Scottsdale-based SimonCRE, led by CEO Josh Simon, went under contract to acquire the roughly 6.2-acre commercial portion of the site from K. Hovnanian. The developer initially declined to name the prospective grocer, and council members noted that some project details were held under a non-disclosure agreement. The identification of Whole Foods as the anchor followed as the project advanced through the rezoning and development agreement process.

Council members representing the area signaled support for the project as it moved toward a final agreement, with details to be shared publicly as the development advanced.

What it means for Peoria

The approval marks a notable commercial investment in north Peoria, an area that has seen substantial residential growth. A national specialty grocer at a major arterial intersection is expected to draw retail traffic to the corridor and support the surrounding residential development.

The city's use of a sales tax incentive to secure the project follows a common economic development practice, pairing public support with private investment to anchor a mixed-use development. The developer's commitment to build and be reimbursed for public infrastructure is a key element of the arrangement.

Details on timing, construction, and the full scope of the residential lots are expected to be shared as the project moves into the implementation phase.