State of the City: Phoenix Mayor Kate Gallego highlights jobs, housing, sustainability

PHOENIX – “Today, the world is looking to Phoenix as a city of the future, where possibility is found in every corner,” Phoenix Mayor Kate Gallego said Tuesday at her annual State of the City address.

Gallego focused on efforts to create a successful, sustainable and safe Phoenix to enable residents to live comfortably. Phoenix is looking to build its economy by addressing climate and housing issues along with increasing investment opportunities. She said record levels of investment are already having an extensive impact on the local economy, creating thousands of high-level jobs to support the middle class.

A Downtown Phoenix Inc. economic impact study showed that between 2005 and 2022, downtown has been “infused with more than $8 billion in public and private investment, and generated $21.2 billion in economic activity in 2022 alone,” the organization said.

“The world’s most advanced semiconductors will be manufactured right here in Phoenix,” Gallego said. “The world’s first automated cars have been put to use right here in Phoenix. Amazing medical discoveries are taking place. What we have created here is unprecedented in American history.”

Gallego emphasized the importance of investments taking place in Phoenix and the state. She announced the Dutch government is setting up a permanent trade office in Phoenix, further cementing the Valley as a key player in the future of the international economy. Investments like these have helped spur the business ecosystem Phoenix strives for in attracting new players.

In Phoenix alone, Gallego said 25 semiconductor companies have either relocated or expanded over the past few years.

“TSMC (Taiwan Semiconductor Manufacturing Co.) alone is creating 25,000 construction and manufacturing jobs – good jobs that change lives,” Gallego said.

Phoenix Mayor Kate Gallego, left, and Greater Phoenix Chamber President and CEO Todd Sanders conduct a Q&A after Gallego’s annual State of the City address at the Sheraton Phoenix Downtown Hotel on April 23, 2024. (Photo by Crystal Aguilar/Cronkite News)

Gallego said she met a Navajo woman who signed up as a member of the Iron Workers Union. The woman reported receiving training and made $8,000 in her first three weeks working on a semiconductor fabrication facility. Gallego called the semiconductor industry a “life-changing career path.”

“The state of our city is strong. If we continue to leverage our strengths and harness our ingenuity, I know we can rise to the challenges we face,” Gallego said.

Kayla Valencia, community outreach regional manager for Southwest Airlines, spoke to the hundreds gathered at Sheraton Phoenix Downtown Hotel ahead of Gallego’s address.

“As we embark on another year of serving the Valley, we’re so excited about the bright future you have in store to continue making Phoenix a great place to call home and a top destination for people from around the world,” Valencia said.

For decades, Phoenix has had a sharp focus on water conservation and supply. Gallego said advanced water purification is essential for sustaining the economy and quality of life for Arizonans, but sustainability in the desert doesn’t just stop there.

She highlighted intentional strategies, including tree canopies that have been planted at schools and legalizing backyard casitas to allow families generational housing preservation.

An increase in housing costs has made it increasingly difficult for people to find housing.

To combat homelessness, Gallego said more communities in the Valley must step up to meet the moment, noting Phoenix has 83% of all emergency shelter beds in Maricopa County.

“No person should die in the summer because the air conditioning went out or because they are unsheltered,” Gallego said. “We owe a special duty to the most vulnerable among us, especially during the summer.”