Amy Edelen

The Republic | azcentral.com

Restaurant owner Michael Monti has eyed development on property around historic Hayden House that he sold

Monti says primary factor in closing iconic restaurant is cost of beef and cost of doing business

Monti%27s%27s father%2C Leonard Monti%2C bought Hayden House in 1954 and opened Las Casa Vieja in 1956

Hayden House%2C where Carl Hayden born%2C believed built in 1870s%2C on National Register of Historic Places

Tempe's iconic Monti's La Casa Vieja, the oldest restaurant in the city and which is housed in the historic Hayden House on Mill Avenue, will close on Nov. 17 after nearly 60 years in business, restaurant owner Michael Monti confirmed Monday.

Monti said that for some time he's been interested in arranging developments around the Hayden House and, due to growing operating costs of the restaurant, he decided to sell.

On Oct. 29, The Republic reported that the new owner of the property plans to develop two high-rise towers on the site, raising speculation about the future of the downtown restaurant that has been the gathering place for countless groups through the years and known Valley-wide for its steak, Roman bread and historic memorabilia.

"In this case, the primary factor really is cost of beef and cost of doing business," Monti said of the decision to close.

Monti's father, Leonard, bought the Hayden House in 1954 and opened Las Casa Vieja in 1956. The Hayden House, believed to be built in the 1870s, was added to the National Register of Historic Places in 1984.

The house, where Arizona politician Carl Hayden was born in 1877, will be preserved and be part of the $200 million office and hotel project on the southwestern corner of Mill Avenue and Rio Salado Parkway.

Monti said that the closing is bittersweet but that he has faith in the proposed project, along with the developers, which aim to keep the historical significance of the Hayden House intact.

"They are willing to do something worthy with the land and historic structure," Monti said. "The tradition and history aren't going away."

Monti said he has no plans to open another restaurant because the cost he would have to incur to stay in business would alter the experience that customers have come to count on at the original steakhouse. He will instead be focusing on his family.

"We're grateful as a family that people have supported the business over the years," Monti said. "I hope everybody will cherish the memories of Monti's."

A partnership of California and Colorado real-estate firms paid $16.875 million for the 2.5-acre site. Known as Hayden House Tempe LLC, the group plans to start construction on a 15-story office building, 16-story Kimpton hotel and 17,000 square feet of restaurant and retail space next year.

"Tempe is experiencing tremendous investment and revitalization," said Douglas Wilson, CEO of San Diego-based Douglas Wilson Cos., which is partnering with Greely, Colo.-based Hensel Phelps and Karlin Real Estate of Los Angeles to develop the project.

A previous deal, which fell through in 2011, called for a developer to build a high-rise next to the restaurant, which would remain open.

The project reflects that Tempe is the hot spot for development and redevelopment in Arizona.

Arizona State University recently named California-based Catellus Corp. the developer of the 330-acre area south of Tempe Town Lake that the school wants to transform into an athletic, commercial and residential district.

Construction is scheduled to start in the next few months on USA Place, a $436 million urban showpiece that is expected to transform a long-neglected corner of Mill into a major attraction, home to USA Basketball and entryway to ASU.

Construction is under way on the $600 million Marina Heights project, just north of ASU's Sun Devil Stadium, that will house more than 8,000 State Farm employees. It is the largest office complex yet built in Arizona.

And development of a high-end apartment complex, SALT, near the shore of Tempe Town Lake in the Hayden Ferry Lakeside mixed-used project, started in October.

"The sale and subsequent development of the Mill and Rio Salado (Hayden House) site is symbolic of the Tempe transformation," said Brent Moser, executive managing director of the Phoenix-based commercial real estate brokerage Cassidy Turley.

Republic reporter Catherine Reagor contributed to this report.