Title
Regency Garage - Authorization to Issue Disposition and Redevelopment Solicitation - District 7
Description
Request to authorize the City Manager, or his designee, to issue a Request for Proposals (RFP) for the disposition and redevelopment of the City-owned Regency Garage located at the southwest corner of 2nd and Adams streets for a mixed-use development project and authorization to begin negotiations with the recommended proposer.
Report
Summary
The City owns the Regency Parking Garage located at the southwest corner of 2nd and Adams streets (Site), on a property comprised of approximately 0.95 acres in Downtown Phoenix. The Site is zoned Downtown Code - Business Core. This parking garage was built in 1972 and contains 506 parking spaces with 22,753 square feet (SF) of leasable ground floor commercial space. Currently, the Arizona Latino Arts & Cultural Center occupies approximately 8,000 SF of commercial/storage space on a month-to-month agreement. The Site also is subject to three active parking agreements.
On March 20, 2019, the City Council authorized a solicitation for the disposition and development of the Site; however, negotiations with the recommended proposer were mutually terminated in 2020 due to market uncertainty resulting from the COVID-19 Pandemic. In 2019, the Greater Phoenix Convention and Visitors Bureau (Visit Phoenix) and the Phoenix Convention Center Department commissioned the consulting firm of Convention Sports and Leisure (CS&L) to assess the market feasibility for the Phoenix Convention Center (PCC) and surrounding hospitality assets. The study was updated in 2022 to account for the Pandemic's impact on the tourism and hospitality industry. The consultant outlined three key recommendations necessary to support the long term needs of the PCC, one of which was to increase the surrounding convention hotel inventory by 800 - 1,200 hotel rooms. In 2024, Visit Phoenix commissioned a study to analyze downtown hotel room needs. The study acknowledges the near-term need for full service hotel rooms. Staff recommends disposition of the Site as it is not necessary for PCC operations and can be redeveloped into a mixed-use, full-service hotel development to support continued growth of the City's convention business.
With approval, the Community and Economic Development Department will issue a solicitation seeking proposals for redevelopment of the Site. Proposers will be required to propose a hotel development and demonstrate experience successfully completing at least one vertical, mixed-use development of at least seven stories within the last five years. Proposers may offer a combination of public benefit or cash compensation for the fair market value of the Site. The RFP will seek proposals that:
- Provide a full-service hotel with no fewer than approximately 400 guest rooms.
- Capitalize on the Site's prominent downtown location and proximity to the PCC.
- Support the long term expansion needs of the PCC and the City's convention and visitor industry.
- Implement the Adams Street Activation Study recommendations and other relevant City plans.
- Are consistent with the Downtown Strategic Plan goals.
Procurement Information
Responsive proposals will be evaluated by a panel including City staff and community representatives. The evaluation criteria will be:
Concept to Activate the Site 0-375 points
Return to the City 0-350 points
Proposer's Qualifications and Experience 0-275 points
Following negotiations with the recommended proposer, staff will present business terms to the Economic Development and Housing Subcommittee for review and recommendation and subsequently to the full City Council for approval.
Financial Impact
There is no impact to the General Fund as a result of this action.
Concurrence/Previous Council Action
This item was recommended for approval at the Economic Development and Housing Subcommittee meeting on February 12, 2025, by a vote of 3-0.
Public Outreach
Staff presented information to the Downtown Core Community Association on January 5, 2025, and has offered information to the Downtown Voices Coalition and the Downtown Phoenix Inc. Stakeholders Open House.
Location
Southwest corner of 2nd and Adams streets.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan, the Community and Economic Development and Phoenix Convention Center departments.