Title
Request Authorization to Enter into Development Agreement for Disposition of City-Owned Parcel at 1701 W. Camelback Road (Ordinance S-44601)
Description
Request to authorize the City Manager, or his designee, to enter into a development agreement, and other agreements as necessary, (collectively, the Agreements) with Unified Capital Partners, LLC (Developer) for the sale and development of a City-owned parcel located at 1701 W. Camelback Road. Further request authorization to accept all funds related to this item. The Developer will pay a purchase price of $110,000 for the site, with a projected total project value of $66.3 million.
Report
Summary
The Developer submitted its proposal in response to the Community and Economic Development Department (CEDD) Request for Proposals (RFP) for the disposition and redevelopment of the City-owned vacant parcel in the Solano ReinventPHX District, comprising approximately 9,800 square feet, or 0.23 acres, at 1701 W. Camelback Road (Site). The Site was purchased by the City in July 2004 with Federal Transit Administration (FTA) grant funds.
The Developer proposes a mixed-use, transit-oriented development to include approximately 330 residential units, commercial areas, and 417 parking spaces in an eight-story building (Project). The Project will include the Site and surrounding, adjacent land controlled by the Developer. Project value is projected to be $66.3 million.
The Developer will pay a purchase price of $110,000 for the site, which is above the May 17, 2017, appraised value of $90,000. A Letter of Intent (LOI) was signed on Feb. 14, 2018. The Agreements are to be executed within six months of the LOI. The Developer will design and complete construction within 10 years of the execution of the Agreements.
Procurement Information
In July 2017, CEDD issued an RFP for the sale and development of 1701 W. Camelback Road. The RFP was open for eight weeks. One proposal was received, which was from Unified Capital Partners, LLC and staff verified the proposal was responsive to the RFP requirements.
Prior to executing the Agreements, staff will secure necessary approvals from the FTA.
Contract Term
The total term of the Agreements is 10 years.
Financial Impact
The sale of the Site will place this approximately 9,800-square-foot corner in private control with the owner of the surrounding property. The total Project value is estimated by the Developer to be $66.3 million, creating 715 construction jobs and 44 permanent jobs. Proceeds from the sale of the property will be distributed to the Phoenix Public Transit Fund. There will be no impact to the General Fund as a result of the sale of this property.
Concurrence/Previous Council Action
This item was approved at the April 4, 2018 Downtown, Aviation, Economy and Innovation Subcommittee by a vote of 3-0.
Location
1701 W. Camelback Road.
Council District: 4
Department
Responsible Department
This item is submitted by Deputy City Managers Deanna Jonovich and Mario Paniagua, and the Community and Economic Development and Public Transit departments.