Title
Aviation Land Reuse Strategy Land Disposal Located on Madison Street: 3 Parcels within Area A - District 8
Description
Request the Economic Development and Arts Subcommittee recommend City Council authorization to sell City-owned property identified by the Aviation Department as excess Aviation Land Reuse Strategy land inventory at a price negotiated on the open market based on the City's appraisal to Pilgrim Rest Foundation, Inc.
Report
Summary
The Airport’s Land Reuse Strategy was developed in 2017 to address the reuse and redevelopment of fragmented City-owned parcels located west of Phoenix Sky Harbor International Airport. In December 2022, the Aviation Department received approval from the Federal Aviation Administration to sell and/or redevelop 427 parcels. Working in coordination, Aviation and Community Economic Development (CED) Departments prepared the grouping for public offering.
The Grouping and Proposed Terms:
- A portion of Area A is located on Madison Street. The grouping consists of three separate and non-contiguous parcels, which impacts their development potential (Attachment A).
- The parcels are zoned R-5.
- The parcels appraised at $386,000 as of April 29, 2024.
- All disposals will require execution of an avigation easement and include a deed restriction prohibiting residential use.
Public Offering Process
- The grouping was offered for sale from August 1, 2024 to August 30, 2024 (30 days), through the City's website and an advertisement in the Arizona Republic.
Results and Recommendation
The City received one offer for the grouping. Staff reviewed the offer and recommends the following:
- The City received an offer for the grouping on August 19, 2024, from the recommended buyer, Pilgrims Rest Foundation, Inc. (PRF).
- PRF submitted an offer of $450,000 for all three parcels. The offer exceeds the appraised value.
Financial Impact
The total revenue from this disposition will be $450,000 and will be returned to the Aviation Department.
Concurrence/Previous Council Action
- The disposition process and parcels were recommended for approval by the Economic Development and Housing Subcommittee at the June 12, 2024 meeting by a vote of 4-0.
- City Council approved CED’s use of a competitive public offer process to dispose of these parcels on June 26, 2024.
Location
Grouping (3 Assessor Parcel Numbers) - Multiple addresses, see Attachment A.
Council District: 8
Department
Responsible Department
This item is submitted by Assistant City Manager Ginger Spencer and the Community and Economic Development Department.