Title
Authorization to Enter into a Membership Agreement with Downtown Phoenix, Inc. (Ordinance S-48535)
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. or it's City-approved successor entity. 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 (DPP), Phoenix Community Alliance and Downtown Phoenix Community Development Corporation. Separate from this item, DPI has been working to streamline operations between the affiliate organizations and is currently working toward a merger between DPI and DPP which will be the subject of a future City Council Formal agenda item. 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, 2022. The new three-year membership agreement will begin July 1, 2022 and end on June 30, 2025. 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, 2022 through June 30, 2025, 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
On June 19, 2019, City Council approved the current three-year agreement with DPI (Ordinance S-45822). This item was recommended for approval by the Economic Development and Equity Subcommittee at the March 23, 2022 meeting by a vote of 4-0.
Location
Council Districts: 4, 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Community and Economic Development Department.