Title
***REQUEST TO WITHDRAW (SEE ATTACHED MEMO)*** (CONTINUED FROM FEB. 7 AND MARCH 6, 2024) - Central Business District Boundary Update (Resolution 22183)
Description
Request to amend Resolution 17093 to modify the boundaries of the Phoenix Central Business District (CBD).
Report
Summary
The original City of Phoenix CBD was established on Dec. 28, 1961. This original area was approximately 30 blocks in the City Center and was expanded in 1987 through Resolution 17093 to include just over two square miles of downtown (Attachment A). In 1993, a second CBD was established for part of the Sky Harbor Center Redevelopment Area to assist with the redevelopment of the areas south and west of Phoenix Sky Harbor International Airport. The Sky Harbor CBD was expanded in 1993, 1996, and 2003. The purpose of creating a CBD was to establish a “Phoenix Tax Incentive District” to encourage private investment in the construction of substantial new improvements.
In 2018, the Arizona Legislature modified the Arizona Revised Statutes (A.R.S.) requirements for a CBD, making several changes that impacted how Arizona cities could establish the boundaries for a CBD. The modifications included a restriction on the size of a CBD, limiting areas to not more than two-and-one-half percent of that total land area of the municipality. In Phoenix this is just over 12 square miles. Additionally, the CBD must be contiguous and geographically compact with a form that has a length that is not twice its width. Despite legislative changes, the existing CBD boundary of Phoenix is grandfathered in and remains in its approved form, with the exception of the second CBD near Phoenix Sky Harbor Airport which has remained inactive since 2018. Modification of the CBD is possible; however, the new boundary for the CBD would need to comply with the modified requirements regarding the size and shape of the district boundary.
The proposed modifications to the CBD would be to expand the boundary to be generally from Thomas Road on the north to one half block south of Broadway Road on the south and the 23rd Avenue alignment on the west to 7th Street on the east. The boundaries are more specifically shown in Attachment B. The proposed updated boundary complies with the modified requirements in state law and will provide new opportunities for redevelopment in the updated Downtown Redevelopment Area, the Rio Salado Redevelopment Area and the Target Area B Redevelopment Area.
Concurrence/Previous Council Action
Updates on the Phoenix Central Business District were presented to the Economic Development and Equity Subcommittee on Feb. 22, 2023 and June 14, 2023. On June 28, 2023, staff presented a modified proposal for recommendation to Economic Development and Equity Subcommittee and the item was approved by a vote of 4-0.
Public Outreach
Staff presented to the Phoenix Community Alliance Public Affairs Committee on Jan. 9, 2024, the Phoenix Community Alliance Social & Housing Advancement Committee on Jan. 11, 2024, and the Downtown Voices Coalition on Jan. 13, 2024. Presentations were also offered to the Central City and Encanto village planning committees.
Location
Boundaries of the updated Central Business District are generally Thomas Road on the north and Broadway Road on the south, 23rd Avenue on the west and 7th Street on the east.
Council Districts: 4, 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Community and Economic Development Department.