City approves tax break for micro apartment complex

It's a concept that is growing around the country, tiny places to live called micro-apartments.

Plans to build a high rise of micro-apartments in downtown Phoenix are moving forward after the City Council approved a tax break for the developer.

The development is expected to cost $36 million; it will include 200 micro units with a kitchen, living room, and bedroom all fitting inside. The cost to rent a unit is expected to reach $1300 per month.

The small fully furnished units are ready to go for the urban millennial generation. What is now an empty lot near McKinley and 2nd Street will become a 19 story complex of 211 micro apartments.

"Really excited they are coming to Phoenix, I think it really gives an indication that we are no longer looking at the urban sprawl and pushing out into suburban markets and live in downtown," said Christine Mackay with the City of Phoenix.

The lot has been empty for over three decades. City leaders believe once the units are built, the units will rent for $1300 per month.

"For 400 square feet, $1,300 does not sound that reasonable, no I've got double the square footage for $900 per month," said Sam Lwali.

The city hopes the amenities like restaurants and access to the light rail will attract corporate tenants, downtown workers, and students.

"I think it's a really good idea, there's a lot of students coming to downtown, especially with the new law building that Arizona State University is opening up right next to Cronkite," said Troy Lynch.

So when you think of the future of urban living in Phoenix, think small.