After both of these plans failed, the site was sold to the Arizona State University (ASU) Foundation and redeveloped as SkySong, a technology and innovation-focused complex with office, retail, and residential components.

[3] Los Arcos was the first enclosed mall developed by Phoenix-based Westcor Partners, led by Russ Lyon Jr. and John L. Holmes; the two had previously worked together to build Tower Plaza, an open-air[6] center.

[5] Among the inline tenants was a movie theater on the lower level; three outparcel buildings would be built for the two anchors' automotive centers and a First Federal Savings and Loan office.

Equity Properties asked the city of Scottsdale to consider loaning it money to buy the store building from the chain in the event that it closed.

[22] Opponents feared impacts on the surrounding community and opposed a proposal to use state sales tax revenues to pay for part of the project.

[25] The first major hurdle was a May 18, 1999, vote to allow Scottsdale to form a stadium district with at least one other Maricopa County municipality to pay for the project.

[27] While backers of the measure celebrated, the physical condition of the Los Arcos property began to deteriorate, with visible neglect in landscaping.

[31] In a move that seemingly put the Los Arcos project back on track, Steve Ellman bought the team for $87 million in a deal approved by NHL commissioner Gary Bettman in April 2000.

[32] After a salvage auction was held in February,[33] demolition began in May 2000, though the Red Robin restaurant on the outside planned to remain as long as it could, along with two bank outparcels.

[34] The Red Robin had sued the Ellman Companies for breaking promises that they would be included in the redevelopment; the business continued to operate while SWAT teams practiced on the partially demolished structure.

[36] However city leaders saw documentation from Steve Ellman that showed he planned to sell the Los Arcos complex a decade after it was completed for a $225 million profit; Scottsdale officials argued that money should also go to taxpayers.

[40] Former state attorney general Grant Woods was enlisted to keep the project alive and lobby for needed time extensions as Ellman launched a media blitz.

[41] The Scottsdale city council voted 4–3 on March 6, 2001, to extend the life of the stadium district, allowing the Los Arcos arena project to continue.

[47] However, the proposal met with a cool reception at Scottsdale city council due to continuing political hostilities with Steve Ellman.

[51] Opponents quickly mobilized, forming a group known as "STOP 'EM" to send a referendum on the potential $200 million subsidy over 40 years to voters, which would take place on March 9, 2004.

[52] Meanwhile, the Ellman Companies struggled to nail down agreements with the major retailers expected to anchor the Los Arcos Town Center project.

[54] As 2004 began, the future of the Los Arcos site—which one Arizona Republic article declared "the most divisive piece of property in Scottsdale history"—hung on the fate of the March 9 vote.

The winning proposal featured a large set of shade sails, dubbed SkySong, and a design inspired by La Rambla in Barcelona.