Title
Funding Agreement for Children’s Museum of Phoenix General Obligation Bond Project (Ordinance S-52957) - District 8
Description
Request to authorize the City Manager, or his designee, to negotiate and execute a Funding Agreement between the City and the Children’s Museum of Phoenix for the completion of the General Obligation Bond Project and to authorize the City Treasurer to accept funds from the Children’s Museum in support of the Project. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
On November 7, 2023, Phoenix voters passed the City Council-approved $500 million General Obligation (GO) Bond Program. Question 3 of the approved GO Bond Program authorized the issuance of $114,385,000 in GO Bonds to provide funding for education, economic development, reduction of waste, resource management, and arts and culture projects.
The Children's Museum of Phoenix (the "Museum") operates a children's museum at the City-owned Monroe School property located at 215 N. 7th Street in Phoenix. As part of the GO Bond Program, the City Council authorized $5,323,584 of GO Bond funds for a project to renovate and upgrade spaces at the Monroe School (the "Project"). Work included in the Project includes abatement, demolition, structural, mechanical, HVAC, plumbing, electrical, flooring, drywall, finishes, windows and doors, and ADA compliance work.
The City has procured design and construction firms to complete the Project and the City Council has authorized expenditure of the allotted GO Bond funding, but the total cost of the Project exceeds the total amount allocated. The Museum has agreed to contribute funds to complete the Project. Staff are requesting authorization for the City Manager or his designee to negotiate and execute a Funding Agreement between the City and the Museum that sets out the terms and conditions by which the Project will be funded and completed. Staff are requesting further authorization for the City Treasurer to accept the Museum's contributed funds (currently estimated to be $575,000, but subject to change based on mutually-agreed upon changes to the Project) pursuant to the terms of the Funding Agreement and for the City Controller to disburse those funds to complete the Project.
Financial Impact
The City Council has already approved expenditures of $5,323,584 in GO Bond funds on this Project. The impact of this Funding Agreement would be to authorize the City Treasurer to accept the Museum's contribution of funds (approximately $575,000, but subject to change based on project demands) and authorize the City Controller to disburse those funds to complete the Project.
Location
215 N. 7th Street, Phoenix, AZ 85034
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Frank McCune and the Office of Arts and Culture.