Title
First and McKinley Streets Parcels Lease and Redevelopment - Authorization to Issue Solicitation
Description
This report requests the Economic Development and Equity Subcommittee recommend City Council approval to issue a Request for Proposals (RFP) for the lease and redevelopment of City-owned property at First and McKinley Streets and authorization to begin negotiations with the recommended proposer.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
The City owns parcels located in the Downtown Phoenix Redevelopment Area, comprising approximately 65,300 square feet (SF), or 1.49 acres, at the southwest and southeast corners of First and McKinley Streets (Site). The Site is zoned West Evans Churchill within the Downtown Code. The western portion of the Site was recently included in a recommendation to the Economic Development and Equity Subcommittee as one of many sites on a property disposition list. The eastern portion of site is currently leased to Arizona State University for parking.
With approval, staff will issue a RFP seeking offers for a compatible, infill, mixed-use, high-rise development with true ground floor activation on the Site. Proposals that include residential development will also be required to allocate a minimum of ten percent of the total units to affordable housing and a minimum of ten percent of the total units to workforce housing. Proposals that include parking will need to offer creative and unobtrusive solutions. All proposals will be encouraged to incorporate design considerations and programmatic elements that support and enhance the arts community along Roosevelt Row.
An appraisal of the Site is currently underway and will be completed prior to the RFP issuance. Proposers will be asked to submit a project for the entire site, including the parcels separated by Right of Way. Each proposer will be required to provide a return to the City equal to or greater than appraised value and demonstrate successful completion of at least one mixed-use development within the last seven years.
The RFP will include standard terms, conditions and other necessary requirements, and will include the following evaluation criteria:
- Concept to Activate the Site (0-375 points)
- Return to the City (0-325 points)
- Proposer's Qualifications and Experience (0-300 points)
If approved, the RFP will be issued later this year and will be open for at least 60 days. Responsive proposals will be evaluated by a panel that includes City staff and community representatives. Following negotiations with the recommended proposer, business terms will be presented to the Economic Development and Equity Subcommittee for review and recommendation, then to the full City Council for approval.
Financial Impact
There is no impact to the General Fund as a result of this action.
Public Outreach
Staff presented to the Downtown Voices Coalition on Dec. 10, 2022; the Roosevelt Row Merchant Association on Dec. 15, 2022; the Central City Village Planning Committee on Jan. 9, 2023; the Roosevelt Action Association on Jan. 17, 2023; the Evans Churchill Neighborhood Association Board on Jan. 18, 2023; and the Evans Churchill Neighborhood Association on March 8, 2023.
Location
The Site is located at the southwest and southeast corners of First and McKinley Streets and includes nine parcels (APNs 111-43-007A, 111-43-006A, 111-43-005A, 111-43-060, 111-43-059, 111-43-058, 111-43-063, 111-43-062, 111-43-061).
Council District(s): 7
Department
Responsible Department
This item is submitted by Acting Deputy City Manager John Chan and the Community and Economic Development Department.