Title
Amendment to Financial Advisory Services Contract with Rounds Consulting Group Inc. to Add Downtown Absorption Rate Study (Ordinance S-47462)
Description
Request to authorize the City Manager, or his designee, to extend and allow additional expenditures of up to $15,000 under City Contract No. 149681 with Rounds Consulting Group Inc. for a Downtown Residential and Commercial Absorption Rate study for the Community and Economic Development Department. Further request authorization for the City Controller to disburse all funds related to this item. There is no impact to the General Fund.
Report
Summary
At present, there are approximately 3,767 new residential units under construction and another approximately 2,811 units in the pipeline with some form of approval in downtown Phoenix. For comparison, between 1996 and today, a total of 6,747 new residential units were completed in the same general area. This unprecedented growth cycle is the result of the collaborative work led by the Phoenix City Council to redevelop downtown into the economic, educational and entertainment center of the region. To better understand the market’s ability to absorb the new construction, a Residential and Commercial Absorption Rate study is needed. Community and Economic Development Department staff will work with Rounds Consulting Group Inc. to gather and analyze available data to provide a report on the Downtown market to the City's Workforce and Economic Development Subcommittee.
Financial Impact
The City's total estimated expenditure for this project will not exceed $15,000. There is no impact to the General Fund. Funding is available in the Downtown Community Reinvestment Fund.
Concurrence/Previous Council Action
The City's Workforce and Economic Development Subcommittee provided direction for staff to move forward with the study at its Feb. 24, 2021 meeting.
Ordinance S-45562 for Affordable Housing Financial Advisory Services was approved by Council on April 17, 2019. Contract No. 149681 began on June 1, 2019 with a five-year term ending on May 31, 2024.
Location
Council Districts: 4, 7 & 8
Department
Responsible Department
This item is submitted by Interim Deputy City Manager John Chan and the Community and Economic Development Department.