Jahna Berry
The Arizona Republic
Jan. 7, 2008 06:17 PM

Federal officials have cleared the $900 million CityScape high-rise project for takeoff.

On Monday, the Federal Aviation Administration ruled that the three-square block downtown Phoenix project poses no risk to aircraft that fly in and out of nearby Phoenix Sky Harbor International Airport."It's what we expected all along," said John Bacon, spokesman for Scottsdale-based RED Development. "This was within the guidelines that the city established," he said referring to downtown height rules the city adopted in 2006.

The developer scaled back initial plans for four planned CityScape towers, one over 500 feet; they are now slated to be around 400 feet. But those heights could change, Bacon added. Monday's FAA ruling helps clear the way for one building, with hotel rooms and condos, to rise as high as 510 feet.

It was a high stakes issue. If the FAA said the project was too tall, the city would have denied cityscape's building permit.

City leaders have touted CityScape, which broke ground in October, as a crucial downtown development. It's supported by more than $120 million in incentives from Phoenix. The hub of shops, hotels and offices, extends from First Avenue to Second Street, and from Washington to Jefferson streets. Demolition and other site work is underway and the first phase could open as early as 2009.

"We initially issued a Notice of Presumed Hazard because the structure heights exceeded several FAA obstruction standards," said FAA spokesman Ian Gregor.

After further review, the agency concluded that the projects "punches up" into an airspace buffer, but doesn't have a negative effect on flights, he added.

Over the years tall projects in both Phoenix and Tempe projects have fallen under FAA scrutiny. Each development is evaluated on its own merits and by how it would impact the airport, the FAA says.