Two of its restaurants, Golden Buddha, specializing in
dim sum, and Lao Ching Hing Shanghai, closed in 2012, unable to survive the
Great Recession. The center had struggled with occupancy for years and by 2017, the occupancy rate was 26% and only 6% of those were Chinese-related businesses. The annual Chinese New Year festival switched to another venue (
Hance Park in downtown Phoenix) after 2012. COFCO decided to sell and stated to prospective buyers that the center had been "largely abandoned by the Chinese community and that no restrictions of any kind were being placed on the site which would impede redevelopment". The property was sold by COFCO in June 2017 for $10.5 million to a private-equity company who planned to redevelop it for other uses, removing the elements of Chinese architecture and remodeling the property into a modern looking office building. The new owner, True North (later Outlier) had budgeted $10 million to remodel the property as its own corporate headquarters, housing approximately 350 of its 12,500 employees. The supermarket, which was renamed to Super L Ranch Market when it changed ownership , did not have a long-term lease and was given thirty days, extended once, to vacate by True North. Super L rushed to relocate and moved several miles away to a smaller location in south
Scottsdale, a defunct
Fresh & Easy store, without room for the bakery, live seafood, or fresh meat department. It was unprofitable at the new location and closed in 2019. Other businesses failed to reach agreements with True North to stay at the center. Beijing Garden, a restaurant, refused to leave after its lease expired. The restaurant said its attempts to extend or renew a lease were ignored. True North said it was ignored by the restaurant's owner and it resorted to legal "self-help" eviction methods such as cutting off utilities to force the restaurant to leave. Preservationists and some members of the Chinese community fought to have the building and grounds kept intact, and the owner offered to keep the gardens in place. Lawyers for True North noted that the owner's property rights were protected by
Proposition 207, requiring property owners to be compensated for loss of value caused by any government restriction of property rights, which was passed by a wide margin in the aftermath of 2005 US Supreme Court decision in
Kelo v. City of New London. Opposition was led by the Chinese United Association of Greater Phoenix, which represented nearly 20 different entities opposed to the redevelopment. The group attempted to explain the significance of the center to the Asian community, obtain a historic designation from the city, and pursued other legal efforts. True North said in 2017, after evicting Super L, that some of the smaller tenants would be able to stay in a much improved property. By mid-August, almost 4,000 people signed a petition asking that the center be preserved and a protest attracted 250. Hundreds returned for weekly protests on the weekends. Initially, True North offered several concessions including maintaining the garden area and keeping it open to the public during business hours, relocating statues and signs, spare roof tiles and other unique elements to another location, preservation of the Welcome Gate, and providing of space for non-profit use for up to three years. In a September 2017 Phoenix City Council meeting, nearly 200 citizens, many Chinese-American, attended to seek historic designation for the center. The council voted unanimously to consider the issue further if the preservation proponents produced an analysis of the property's historical significance. The council decision did not prevent the developer from moving forward. The citizen's petition, which had accumulated 16,000 signatures by the meeting, required a formal response from the city according to the city charter. The petition asked the council to "ensure long-term preservation" of the center. The petition did allow the issue to get before the council without going through the normal historic-preservation process. The council could not have approved the measure (granting a historic designation) without violating a state law requiring consent of the property owner. Furthermore, officials of the City of Phoenix Historic Preservation Office said that sites must be at least 50 years old or be "exceptionally important" to receive a historic designation. On September 13, 2017, access to the gardens was restricted by fencing, leading to claims of religious prejudice by
Taoists and
Buddhists who used the garden for prayer and meditation. The group's lawyer claimed that the practitioners of Taoism, Buddhism, and Confucianism were discriminated against and would have been treated differently, had they "been members of more prominent religions such as Christianity or Judaism". Elizabeth Mann, who was heavily involved in the original development of the center and ran it for its first decade, left BNU in 2008 and was a leader of the redevelopment opposition. Her group frequently protested at the site for over a year. A legal battle ensued. A request to a federal judge to prohibit changes to the center's "religious elements" was denied. In September, a
Maricopa County Superior Court judge issued a temporary restraining order prohibiting removal of the tile roofing and the garden statues for five weeks. It was lifted at the end of November. This case had been brought by a minority owner of the center, the operator of the Szechwan Palace restaurant who owned 5% of the center and said the removal of the Chinese elements would hurt its business, noting that business had already declined 30 to 50% after the garden area was fenced off. The company argued that the CC&Rs prohibited such alteration if it interfered with the "rights of any non-consenting owners in the use of their units". Elizabeth Mann testified that the CC&Rs were written to "ensure the center's Chinese elements would always remain" and the restaurant's lawyer said the roof acted as a "giant sign" for the restaurant. The judge acknowledged that the roof may have helped the restaurant attract business, but its removal did not interfere with the restaurant's use of its space and thus did not violate the CC&Rs. The construction ban was lifted in early December. In late December, construction was again halted when the restaurant appealed. In February 2018, the
Arizona Court of Appeals agreed to review the appeal, thus extending it further. This was one of six lawsuits filed trying to stop evictions and force preservation of the center. The owners of the Szechwan Palace filed one suit against the city claiming that the city itself violated zoning ordinances by issuing the construction permit allowing destruction of the "Chinese roof". The religious discrimination suit was filed in Federal court and alleged converting the center to corporate offices was "desecration of a house of worship". Another restaurant sued over the way its lease was terminated, the supermarket sued for defamation, and True North sued the supermarket owner for defamation, which was rebuffed as a prohibited
SLAPP action. Local orthopedic surgeon Dr.
Anthony Yeung said he was organizing a purchase plan by Chinese community members in May 2018. True North's owner, David Tedesco, said he would be willing to entertain an offer. The Chinese United Association of Greater Phoenix had hired Tom Simon as its spokesperson. He had attended the first organized protest and "claimed to have media and political connections". He regularly represented the group at Phoenix City Council meetings with an aggressive style. When news of his criminal background surfaced, Yeung raised concerns. Simon was accused of sexually harassing a Chinese-American woman and arrested, which cost him his job as spokesman in July. Former Phoenix mayor
Phil Gordon, who initially supported the preservationists, said Simon's unprofessionalism caused him to withdraw his assistance. Gordon said Simon was the primary reason the dispute was not settled out of court through amicable negotiations. However, a lawyer for the Chinese community said the Simon issue was just a diversion orchestrated by True North. By September 2018, the number of legal challenges had grown to ten. The community took the protest to social media and held an in-person protest against
Kate Gallego, a 2018 Phoenix mayoral candidate who had "accepted $75,000 in campaign donations from the owners of [the center] and their spouses." Yeung was quoted in the media as saying "Why would David Tedesco take on the Chinese community when he can acquire property elsewhere?" Others had often noted that True North could go into any office building, while there was only one irreplaceable Chinese Cultural Center. Tedesco's response was that the $10.5 million he paid for the center was "extremely inexpensive". In December 2018, Chinese-American community members claimed that had the "money and resources to purchase the center" and were willing to buy the center for $18 million. The owner reportedly said the offer was a year too late and the property was not for sale and that they had never received a "serious and credible offer" earlier when they were willing to sell. The company continued interior demolition and remodeling while the injunction prevented work on the exterior. Despite being a 5% owner of the center and having the strongest lawsuit blocking the makeover, Szechwan Palace closed in December 2018 after 19 years at the center, announcing that it would relocate the business. Ultimately, the owner prevailed and eventually evicted the last tenants. The roof tiles were too deteriorated to save, and the gardens were leveled. The only elements kept were approximately two dozen stone carvings of classical Chinese guardian figures. Some were supposedly made from a stone that could no longer be exported from its source province in China. As of January, 2020, the statues were in storage. The center was renamed the Outlier Center reflecting its use as an office building for the global headquarters of the new owner. File:Phoenix COFCO4.jpg|The southeast corner in 2022, location of the Chinese gardens File:Phoenix COFCO2.jpg|The west side in 2022, main entrance File:Phoenix COFCO3 (cropped).jpg|Street sign in 2022 still showing "COFCO" name ==Chinatowns in Phoenix==