Title
Voluntary Acquisition and Sale or Lease of Real Property Located at 12027 N. 28th Drive for U.S. Vets (Ordinance S-47175)
Description
Request to authorize the City Manager, or his designee, to acquire real property located at 12027 N. 28th Drive by voluntary purchase using General Funds within the City of Phoenix's appraised value plus usual and customary closing costs, in a total amount not to exceed $10.5 million. Further request authorization to enter into a lease for use of the property as a transitional and permanent supportive housing facility for homeless and at-risk veterans for a term of up to 10 years, with an option to purchase the property including a sale/carryback purchase option, and including such other terms as may be appropriate in the discretion of the City Manager or his designee. Such terms may include rent concessions for improvements, maintenance and other associated costs for any repairs during the lease term. Authorization also is requested to enter into an agreement with U.S. Vets for the operation of the property as a transitional and permanent supportive housing facility for homeless and at-risk veterans in an amount not to exceed $500,000 in Emergency Solutions Grant (ESG-CV) funds and to execute all necessary agreements, leases and documents necessary for the use, operation and disposition of the property. Further request authorization for the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. The aggregate value of the agreements will not exceed $11 million for the combined agreements.
Report
Summary
The property is being acquired to provide housing and services specifically for homeless and at-risk veterans and their families. The City of Phoenix obtained an appraisal, a Phase I Environmental Assessment, and a comprehensive building inspection. The property included in this request is identified by Maricopa County Assessor's parcels numbers 149-17-139C,149-17-140B, and 149-17-141C located at 12027 N. 28th Drive.
U.S. Vets provides services to homeless veterans, including housing and supportive services, in 13 cities across five states. The property will be used to provide transitional and permanent housing to homeless veterans as well as supportive services such as case management, job skills development and other services.
Contract Term
The contract term for operations will begin on or about March 1, 2021 and will end on Sept. 30, 2022. The contract term for lease of the property will start on or before March 1, 2021 through Feb. 28, 2031.
Financial Impact
The aggregate value will not exceed $11 million for the acquisition of the property and operation of the facility. For acquisition of the property, $10.5 million is available in the General Fund. For operation of the facility, $500,000 will be provided from U.S. Department of Housing and Urban Development Cares Act ESG-CV funds.
Concurrence/Previous Council Action
City Council approved $10.5 million of the City's Coronavirus Relief Fund to support U.S. Vets at its Oct. 13, 2020 Policy meeting.
Location
12027 N. 28th Drive
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson and the Housing Department.