Title
Development Agreement with Metrowest Development, LLC for the Sale and Development of 814 N. 5th Ave.
Description
This report requests the Land Use and Livability Subcommittee recommend City Council approval to enter into a development agreement and other agreements as necessary, with Metrowest Development, LLC, or its City-approved designee, for the sale and development of a City-owned property located at 814 N. 5th Ave in downtown Phoenix. The sale of the property will generate one-time revenue of $350,000 in sales proceeds to the City.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
Metrowest Development, LLC, or its City-approved designee (Developer) submitted its proposal in response to the City's Request for Proposals (RFP) for the disposition and redevelopment of an approximately 7,000-square-foot, City-owned vacant lot located at 814 N. 5th Ave in downtown Phoenix (Site). The Site was previously developed with a small multi-family building, which was purchased with U.S. Department of Housing and Urban Development Community Development Block Grant funds by the Neighborhood Services Department in the early 2000’s to facilitate revitalization through blight elimination in the Roosevelt Neighborhood. In November 2005, the structure suffered severe fire damage and was subsequently demolished.
The Developer proposes to relocate and rehabilitate the historic home known as the Seargeant-Oldaker House to the Site. The historic home is currently located at 649 N. 3rd Ave. However, if relocation of the historic home is unsuccessful, the Developer will build a home on the Site that is consistent with the character of the area. The Developer has agreed to purchase the Site for $350,000, which is the appraised value and the minimum purchase price listed in the RFP.
This project will preserve a threatened historic building, resolving a significant community concern. In addition, an unproductive vacant lot in the Historic Roosevelt Neighborhood will be activated and an opportunity for new residents downtown will be created, outcomes supported by the City Council-adopted Downtown Strategic Plan. Furthermore, this project will put a vacant City property back into private and taxable use. The City will only transfer title of the Site when permits to relocate and renovate the home are approved and paid. The City also intends to enter into an agreement with the Developer to allow some utility work and site preparation prior to the closing of the transaction.
Procurement Information
The City received two proposals for the North Fifth Avenue Parcel Sale and Redevelopment Request for Proposals (RFP-CED20-NFA), which was issued on Sept. 29, 2020. The proposals were evaluated by a panel comprised of representatives from the development community and City staff from the Community and Economic Development, Planning and Development, and Neighborhood Services departments. On Jan. 8, 2021, the panel recommended the City begin negotiations with Metrowest Development, LLC, the top-ranked proposer.
Financial Impact
The sale of the Site will generate a one-time $350,000 sales proceed to the City and will put the 0.16-acre property back into private ownership, which will generate net new property tax revenues. There is no impact to the General Fund.
Public Outreach
Staff presented this proposal to the Downtown Voices Coalition on April 10, 2021, the City's Central City Village Planning Committee on April 12, 2021 and the Roosevelt Action Association on April 20, 2021.
Location
814 N. 5th Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson, Deputy City Manager Ginger Spencer, and the Neighborhood Services and Community and Economic Development departments.