Title
Amend Ordinance S-49318 and Development Agreement (City Contract 161105) with Vestar Laveen Manager, LLC (Ordinance S-52223) - District 7
Description
Request the City Council to amend Ordinance S-49318 and the Development Agreement (City Contract 161105) with Vestar Laveen Manager, LLC, or its City-approved designee, to modify certain terms.
Report
Summary
Vestar Laveen Manager, LLC, is the developer (Developer) of approximately 90 acres at the southwest corner of 59th Avenue and Dobbins Road (Site). As part of the first development phase of the Site, the Developer proposes to construct a 375,000 square-foot highly-desirable, vibrant town center on approximately 40 acres designated as Laveen Towne Center (Project). The Project will consist of a national major anchor tenant, smaller anchor retail tenants, a family entertainment and theater user, sit-down restaurants, an amenity-rich community gathering space, and accompanying pads and shops for lease.
This area of Phoenix continues to be a high-demand and high-growth area for both new residential and employment uses. Although the area continues to expand, retail amenities continue to be in short supply and more options are needed to meet demand. This Project will not only serve residents and employees living and working in and around the South Mountain Technology Corridor and the community at large, it will also assist to alleviate the sales tax leakage Phoenix experiences as a result of the lack of retail amenities in the area. The Project is expected to add several hundred new jobs to the area. To accommodate this growth, increased traffic, and the creation of the Project, additional public infrastructure improvements are required.
On January 4, 2023, City Council approved Ordinance S-49318 (Ordinance) authorizing staff to negotiate and enter into a Development Agreement (DA) with the Developer for the installation of public infrastructure improvements to include Dobbins Road from the Arizona Department of Transportation improvements to 59th Avenue, and 59th Avenue from Dobbins Road to the southern boundary of the Site (Improvements). The DA was executed on June 14, 2024. Pursuant to the DA, the Developer will construct the required Improvements and the City will reimburse the Developer a maximum of $25 million upon completion of construction, the City's acceptance, and dedication of the Improvements to the City. The following item under the current terms of the DA is the subject of this request:
- Developer is required to restore the Hudson Farmhouse located on the Site, pursuant to requirements from the Phoenix Historic Preservation Office and State of Arizona Historic Preservation Office. In rehabilitating and restoring the Hudson Farmhouse, the Agreement will not preclude Developer from seeking additional grants from the Phoenix Historic Preservation Commission or the State of Arizona Historic Preservation Commission.
On April 30, 2024, a fire occurred and the Hudson Farmhouse suffered severe damage. Since that time, the Developer engaged consultants to identify the extent of the damage and ascertain the viability of restoring the existing structure. Unfortunately, the analysis concluded that the Hudson Farmhouse could not be successfully restored due to major structural damage. These extenuating circumstances impede the Developer from being able to comply with this term within the Ordinance and DA as originally adopted and described above. Therefore, an amendment to the Ordinance and DA requiring the Developer to incorporate select materials and architectural features from the Hudson Farmhouse and surrounding existing improvements into the design and construction of buildings and common areas of the Project is proposed. The Developer also agrees to relocate and rehabilitate or deconstruct/reconstruct the chimney of the Hudson Farmhouse and one of the adjacent cement stave silos as Site features with explanatory plaques. The Developer also agrees to place additional plaques, detailing the history of the Hudson Farmstead, as well as the agricultural history of Laveen, in publicly visible areas of the Site. No other modifications are proposed to the Ordinance or DA.
Contract Term
The term is 25 years.
Financial Impact
There is no direct financial impact resulting from this amendment request.
Concurrence/Previous Council Action
On June 16, 2015, the Historic Preservation Commission voted not to initiate historic preservation zoning on this Site.
On December 13, 2022, the Economic Development and Equity Subcommittee recommended approval of the Agreement.
On January 4, 2023, the City Council approved Contract 161105 (Ordinance S-49318).
Public Outreach
This item was presented and discussed at the June 9, 2025 Laveen Village Planning Committee meeting.
Location
Generally located on the southwest corner of 59th Avenue and Dobbins Road.
Council District 7
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Community and Economic Development Department.