Title
Authorization to Enter into Membership Agreement with Downtown Phoenix Inc. (Ordinance S-45822)
Description
Request to authorize the City Manager, or his designee, to enter into a three-year membership agreement, and other agreements as necessary (Agreements), with Downtown Phoenix Inc. The fee for the three-year agreement is $300,000. Further request authorization for the City Controller to disburse funds related to this item. There is no impact to the General Fund.
Report
Summary
Downtown Phoenix Inc. (DPI) is an established nonprofit entity designed specifically to enhance the economic and cultural vitality of the broader downtown Phoenix community. DPI coordinates activities between numerous affiliate organizations including the Downtown Phoenix Partnership, Phoenix Community Alliance, and Downtown Phoenix Community Development Corporation. Since 2013, the City has utilized DPI to serve as a liaison to Downtown neighborhood and business organizations; expand and enhance special events; facilitate the creation of net new sales tax revenues; inspire civic pride; and provide social and family entertainment opportunities to the public. In addition to these benefits, as long as the membership agreement is in effect, the City receives six positions on the DPI Board of Directors including the Mayor, City Manager and four additional positions nominated by the Mayor or City Manager.
The City's current membership expires on June 30, 2019. The new three-year membership agreement will begin on July 1, 2019 and end on June 30, 2022. The agreement fee is for $100,000 annually, not to exceed $300,000 for the term of the agreement. The City's investment is leveraged by private-sector dollars, and DPI has obtained outside grants that continue to yield results for the City that would otherwise not be obtainable. The cost of the annual membership has remained unchanged since 2013.
Contract Term
The term of the new agreement will be from July 1, 2019 through June 30, 2022, with no extension options.
Financial Impact
The membership fee is $100,000 per year, not to exceed $300,000 for the term of the three-year agreement. There is no impact to the General Fund. Funding is available in the Downtown Community Reinvestment Fund.
Concurrence/Previous Council Action
This item was recommended for approval at the Planning and Economic Development Subcommittee meeting on June 4, 2019, by a vote of 4-0.
Location
Council Districts: 4, 7 and 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Community and Economic Development Department.