Tempe Demolishes Former Food City for Dorsey Station Project

The former Food City building near Apache Boulevard and Dorsey Lane in Tempe was demolished on July 23, marking a visible milestone for the planned Dorsey Station housing and grocery project.

The demolition cleared the site, but housing construction has not yet begun. City materials and local reports describe Dorsey Station as a planned mixed-use development with approximately 400 apartments and a roughly 10,000-square-foot grocery store on the ground floor.

Affordable housing is the central component

About 90% of the planned apartments—360 of the 400 units—are intended to be affordable, according to KTAR News. The remaining 40 units are planned for market-rate sale.

The affordable units are intended for households earning between 30% and 80% of the area median income. KTAR reported that, for a two-person household in Tempe, that range was approximately $27,000 to $71,950 based on city-provided information. Eligibility will vary by household size and the final program requirements.

The city’s Development Review Commission agenda describes Dorsey Station as a proposed mixed-use development at 1320 East Apache Boulevard and 1214 South Dorsey Lane. The agenda lists 400 dwelling units and approximately 11,000 square feet of commercial floor area.

Why Tempe bought the former grocery site

Food City closed the store in 2021. Tempe later purchased the property amid concerns that the loss of the grocery store would leave nearby residents with fewer food-shopping options and that replacement development could bring housing that was less attainable for many local households.

The planned grocery component is intended to bring grocery service back to the site. No retailer has been publicly identified in the sources reviewed, and the store is not yet open or confirmed as leased.

Construction could start in winter 2026-27

City materials and local reporting indicate construction could begin as early as winter 2026-27, with the development potentially opening by 2029. Those dates are projections, not guarantees, and the project remains subject to continued approvals and progress.

For residents, the immediate change is the removal of the former grocery building. The larger questions—when construction will begin, which households will qualify for the affordable units, and when grocery service will return—remain tied to the project’s approvals, financing and construction schedule.

Sources

• City of Tempe Dorsey Station project page
• Arizona’s Family demolition report
• KTAR News Dorsey Station report