Title
Authorization to Enter into Development Agreement with Hyatt Regency Phoenix Hotel Company, LP for Streetscape Improvement Project in Downtown Phoenix (Ordinance S-45516)
Description
Request to authorize the City Manager, or his designee, to enter into a development agreement, and other agreements as necessary, with Hyatt Regency Phoenix Hotel Company, LP, or its City-approved designee (Developer), for the City to reimburse funds up to $280,000 to the Developer for streetscape improvements in the right-of-way adjacent to the hotel. Further request authorization for the City Controller to disburse funds related to this item. There is no impact to the General Fund.
Report
Summary
The Hyatt Regency Phoenix Hotel is undergoing a $40 million renovation that includes upgrades to guest rooms, enhancements to the meeting and public spaces, new food and beverage options, and new ground floor activation on the corner of Adams Street and 2nd Street, directly across from the Phoenix Convention Center. The Developer has agreed to improve streetscape around the hotel as part of the project, including more shade and enhanced hardscapes along Adams Street. The project is consistent with the recommendations of the Adams Street Activation Study, which was approved by City Council in 2013. The $280,000 reimbursement, after construction is completed, will be for enhancements and modifications to the rights-of-way adjacent to the hotel along Adams Street and 2nd Street. The investment in the streetscape improvements around the hotel will help facilitate the Adams Street Activation Study's recommendations to create new ground floor activation around the hotel, and increase the walkability and pedestrian experience for those headed to and from the Phoenix Convention Center. The hotel's investment will generate an estimated $2.7 million in construction sales tax to all taxing jurisdictions.
Financial Impact
The project will have no expense impact to the General Fund. The one-time construction tax revenue to the City is estimated at approximately $900,000. Funding for the $280,000 reimbursement is available in the Downtown Community Reinvestment Fund in fiscal year 2019-20.
Concurrence/Previous Council Action
This item was heard at the Planning and Economic Development Subcommittee on March 13, 2019, and was approved by a vote of 4-0.
Public Outreach
Staff presented this project to the Downtown Voices Coalition on March 9, 2019 and Downtown Neighborhood Alliance on March 12, 2019.
Location
122 N. 2nd St.
Council District: 7
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Community and Economic Development Department.