Title
Authorization to Enter into Development Agreement with HPPC, LLC (Ordinance S-44321)
Description
Request to authorize the City Manager, or his designee, to negotiate and enter into a development agreement (DA), and any other agreements as necessary, with HPPC, LLC, or its City-approved designee, (Developer), for the installation of enhanced public infrastructure improvements and the dedication of a Public Access Easement. Further request authorization for City Controller to disburse funds. This agreement will not impact the General Fund.
Report
Summary
The Developer recently purchased the Park Central Mall property located at 3110 N. Central Ave. (Site) and is currently investing in upgrading the property. To facilitate pedestrian connectivity and activity at and through the Site, the Developer will make several public infrastructure improvements to Earll Drive and create a new publicly accessible pedestrian plaza and dedicate a non-vehicular public access easement (Project).
Subject to City Council approval, the following major business terms have been negotiated with Developer and would be implemented through a DA:
- Developer will install a dedicated bike lane on Earll Drive from Central Avenue to the Site.
- Developer will install a dedicated bike lane on Earll Drive from 3rd Avenue to the Site.
- Developer will install enhanced pedestrian improvements along Earll Drive between Central Avenue and 3rd Avenue, which will include new landscaping, enhanced shading, decorative paving, new community gathering spaces and a water feature, which are above what is required by City Code.
- Developer will install additional landscaping along its Central Avenue frontage.
- Developer will install other improvements as may be required by any City codes, plans or ordinances, or as agreed upon by both parties.
- Developer will dedicate a Public Access Easement to connect the improvements from 3rd Avenue to Central Avenue.
- City will reimburse Developer up to $2 million over a period of 10 years ($200,000 annually), for the enhanced public infrastructure and the dedication of the Public Access Easement.
- The Public Access Easement may be relocated, subject to City approval, if the Public Access Easement is relocated, Developer will either provide the same type and kind of enhanced public infrastructure improvements or reimburse the City $2 million.
- Developer must comply with Title 34 of the Arizona Revised Statutes.
- The DA will include other terms and conditions as needed.
Financial Impact
This action will not impact the General Fund. The $2 million is available in the Strategic Economic Development Fund and will paid in $200,000 increments over a period of 10 years.
Concurrence/Previous Council Action
This item was recommended for approval by the Downtown, Aviation, Economy and Innovation Subcommittee at the Feb. 7, 2018 meeting by a vote of 4-0.
Location
3110 N. Central Ave.
Council District: 4
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Community and Economic Development Department.