Opus West Corp., the most active commercial developer in Phoenix, broke ground late last week on a $65-million office project in the Capital Mall area. The two office-building complex will be the future homes of the Arizona Department of Administration and the Arizona Department of Environmental Quality.

The 485,000-sf office project is going up across from Wesley Bolin Plaza on the north side of Washington Street, west of 15th Avenue. When completed in late 2002, the offices will house some 1,300 state employees, who will be relocate there from a number of disparate buildings. The state expects to save millions annually on lease payments.

Capital Mall proponents have clamored for new development and beautification projects for the past 10 years, only to watch most of the new development in the area go into downtown. Boosters of the area are hoping this office project will entice further commercial development and spawn a completed rebirth of the once vibrant area.