A controversial redevelopment proposal for the former Shalimar Golf Club in Tempe has been withdrawn, but the story isn’t over yet.
The Scottsdale-based developer under contract to purchase the property has scrapped its original plan and is now pursuing a new development concept that can be built under the site’s existing zoning rules.
What Happened?
- Shalimar Golf Club, a 40-acre, nine-hole golf course in Tempe, closed in 2025.
- BB Living entered escrow to purchase the property.
- The company’s original proposal called for 244 housing units, including 65 for-sale homes.
- Hundreds of nearby residents opposed the project, arguing the density was too high for the neighborhood.
- Following significant community pushback, the developer withdrew the proposal.
What’s Next?
According to the developer:
- A new plan is being developed.
- The revised project will not require a zoning change.
- City submittals are expected this summer.
- Construction could begin by late 2026 or early 2027.
While specific details have not been released, the developer indicated the project can achieve its goals within the property’s current zoning framework.
Why This Matters
This project highlights a growing challenge across Arizona:
- Communities want to preserve existing open space and neighborhood character.
- Property owners face economic realities when aging facilities become financially unsustainable.
- Housing demand continues to pressure local governments to find places for new development.
In the case of Shalimar, the golf course reportedly required millions of dollars in repairs and maintenance. After years on the market, no golf course operator stepped forward to purchase and continue operating the facility.
Investor Takeaways
- Entitlement risk remains one of the biggest hurdles for large residential developments.
- Community opposition can dramatically alter project timelines and outcomes.
- Existing zoning may become increasingly important as developers seek paths with fewer political obstacles.
- Redevelopment of aging golf courses, retail centers, and other underutilized properties will likely remain a major source of future housing supply throughout the Phoenix metro area.
The Shalimar story serves as another reminder that while Arizona needs more housing, the path from concept to construction is rarely straightforward.