Title
Assignment of Services Agreement for Enhanced Municipal Services District (Ordinance S-48538)
Description
Request to authorize the City Manager, or his designee, to consent to the assignment of services in connection with the merger of Downtown Phoenix, Inc. with the Downtown Phoenix Partnership, Inc.
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. DPI has been working to streamline operations between the affiliate organizations and is currently working toward a merger between DPI and DPP. Since 2014, 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. The City Council annually approves the Enhanced Municipal Services District (EMSD) work plan and budget, as recommended by DPP Board of Directors. We are currently in the second year of a five-year contract agreement with DPI. The merger will simplify governance, reduce repetition of meetings and administration of the organizations. The proposed merger will result with DPP as the surviving entity which will then change its name to “Downtown Phoenix, Inc.” (New DPI) to maintain the brand recognition that has been built. The New DPI board will consist of representatives from the current DPP and DPI boards.
Upon completion of the merger, DPP will convert into a Division within New DPI which will be governed by the new Board of Directors, but will maintain a Downtown Phoenix Business Improvement District advisory committee which will be responsible for recommending an EMSD budget and work plan to the Phoenix City Council.
The Downtown Phoenix Business Improvement District Advisory Committee currently consists of the following appointments:
- The Mayor of the City of Phoenix or designee and a City Council member as advisory members (currently Councilwoman Stark)
- Three members appointed by City Manager to represent the City of Phoenix
- The County Manager or his/her designee as an advisory member
- One member of the County Board of Supervisors to represent Maricopa County
- Two members representing Arizona State University’s Downtown Campus
- One member representing University of Arizona
- One member representing Phoenix Biomedical Campus
- One member representing residents
- Three members representing arts, culture, sports and entertainment venues
- One member representing Phoenix Convention Center
- Three members representing office tower property ownership/management
- Two members representing hotel ownership/management
- Four members representing large employers
- One member representing restaurant ownership
Contract Term
The current term of the agreement from Jan. 1, 2021 through Dec. 31, 2025 will not change.
Concurrence/Previous Council Action
On June 17, 2020, City Council approved the current five-year agreement with DPI (Ordinance S-46759).
Location
Council District(s): 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Community and Economic Development Department.