Title
Amendment to City Contract 121451 Disposition and Redevelopment Agreement with Block 23 Commercial, LLC (Ordinance S-43375)
Description
Request authorization for the City Manager, or his designee, to amend the CityScape Disposition and Redevelopment Agreement as amended by the Fifth Amendment, (“DRA”) to modify the Block 23 Minimum Improvements description for the redevelopment of Block 23 located at 125 E. Washington Street in downtown Phoenix.
Report
Summary
In October 2016, City Council authorized the amendment and assignment of rights associated with the DRA through Ordinance S-42897. Since that time, Block 23 Commercial, LLC, ("Developer"), an entity affiliated with RED Development, LLC, has executed a development agreement/lease and currently owns the development rights to Block 23 and has commenced construction of the Block 23 Project. Currently, the project is progressing through the archaeological assessment stage. This action is a request to amend the description of Block 23 Minimum Improvements in the Fifth Amendment to allow for additional market flexibility while keeping minimum requirements for the project.
Section 201.1 (Block 23 Improvements) will be modified in its entirety and replaced with the following:
Section 201.1 Block 23 Improvements
(a) The proposed project is a mixed-use high-rise development project with an approximate total gross square footage of 500,000 gross square feet, not including parking (the "Project");
(i) The Project includes at least two of the following uses: office, commercial, or residential;
(ii) The Project specifically excludes hotel as a possible use;
(b) The required minimum improvements within the Project ("Block 23 Minimum Improvements") shall be:
(i) a grocery store space of at least 50,000 gross square feet ("Grocery");
(ii) at least 150,000 gross square feet of office space ("Office");
(iii) approximately 500 above- and below-grade structured parking stalls or spaces ("Parking"); and
(iv) all perimeter streetscape improvements associated with Block 23 ("Streetscape").
Upon execution of this amendment, the Grocery, Office, Parking and Streetscape collectively shall be and constitute the "Block 23 Minimum Improvements" described in the Fifth Amendment. The Project, including the Block 23 Minimum Improvements, will be reviewed and permitted by the City's respective permitting departments, and designed and constructed at Block 23 Developer's sole cost. Block 23 Developer shall continue to submit the necessary plans to CED for review in accordance with Section 401(b) of the contract.
All other terms and conditions of the DRA, as amended by the Fifth Amendment, will remain the same and in full force.
Contract Term
There is no impact to the contract term of 50 years.
Financial Impact
There is no impact to the General Fund by this action.
Location
125 E. Washington Street.
Department
Responsible Department
This item is submitted by Deputy City Manager Paul Blue and the Community and Economic Development Department.