Title
Development Agreement between City of Phoenix and XSC Phoenix Investment, LLC for Upsizing of Water Main at 200 W. Monroe St. (Ordinance S-45737)
Description
Request to authorize the City Manager, or his designee, to enter into a Development Agreement with XSC Phoenix Investment, LLC (“Developer”) to allow the Developer to pay the City an amount of $160,092 in lieu of directly fulfilling the requirements to upsize approximately 385 feet of a substandard water main and to perform associated street pavement repairs along 3rd Avenue from Monroe Street to Van Buren Street. Further request to authorize execution of amendments to the Development Agreement as necessary, and return the funds if the Developer exercises its option to complete the upsizing and repair work within 3rd Avenue itself before the City has begun any work. Additionally, request to authorize the City Treasurer to accept all funds, and the City Controller to disburse all funds, related to this item.
Report
Summary
The Developer owns approximately two acres of property consisting of the entire block located between Monroe Street and Van Buren Street from 2nd Avenue to 3rd Avenue. To facilitate this development, local improvements to public infrastructure are necessary. The improvements include upsizing a substandard 6-inch water main in 3rd Avenue to a 12-inch water main. The Developer will pay $160,092 to Phoenix to satisfy the Developer’s obligations for water main upsizing and street pavement repair.
The site will be developed in two phases. When Phase 1 begins, the Developer will complete the main upsizing improvements within 2nd Avenue and pay the in-lieu fees for the City to complete the main upsizing improvements within 3rd Avenue. When Phase 2 begins, the Developer has the option of requesting the funds back from escrow and performing the upsizing and repair work within 3rd Avenue itself if the City has not already begun work.
Financial Impact
The Developer will pay the City a one-time payment of $160,092.
Location
3rd Avenue between Monroe Street and Van Buren Street.
Council District: 7
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.