Title
Amend Ordinances to Modify Business Terms with Arizona Fresh Holdings, LLC for Redevelopment of the Former Del Rio Landfill at 1150 E. Elwood Street (Ordinance S-51551) - District 8
Description
Request to authorize the City Manager, or his designee, to amend Contract 157320 with Arizona Fresh Holdings, LLC, or its City-approved designee (Developer), for the lease and redevelopment of the approximate 140-acre City-owned Del Rio former landfill located at 1150 E. Elwood Street (Site).
Report
Summary
In October 2020, City Council authorized agreements with the Developer to redevelop the Site into a mixed-use project that includes: an Agri-Food Innovation Center with a wholesale produce distribution center; retail, education, and research facilities; and an approximately 20-acre City park (Project).
As the Site design has continued to progress, the Developer has performed additional due diligence, including geo-technical investigations to determine the viability and pricing estimates for the Project and public infrastructure improvements. Additionally, Developer has recently identified a financial partner for Phase I, which includes the 20-acre park, Rio Salado Parkway and the wholesale produce distribution center. Developer has proposed a new phased construction schedule that requires an amended timeline.
Upon City Council approval, staff will amend the agreements with the Developer to extend the Commence Construction Date one-year from 24 months to be a total of 36 months from the Effective Date. This extension request will allow the Developer to comply with the construction start date stipulated in the Development Agreement. A one-year extension will not effect construction of the three future phases of the Project as stipulated in the Development Agreement.
Contract Term
The ground lease is for a term of 100 years and started on October 1, 2022.
Financial Impact
The one-year extension has no impact on the City's general fund.
Concurrence/Previous Council Action
City Council originally approved the contract on October 7, 2020 (Ordinance S-46989).
City Council approved amendments to the contract on September 15, 2021 (Ordinance S-47957), June 15, 2022 (Ordinance S-48799) and August 31, 2022 (Ordinance S-48956).
Location
1150 E. Elwood Street
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Community and Economic Development Department.