Title
1414 E. Jefferson St. Parcel - Authorization to Receive Offers for Disposition and Redevelopment
Description
Request City Council authorization for the City Manager, or his designee, to receive offers for the disposition and redevelopment of City-owned property located at 1414 E. Jefferson St., and authorization to begin negotiations with a developer following a competitive process.
Report
Summary
The City owns approximately 1.1 acres of vacant land at 1414, 1418, 1422, 1426, 1430, 1434 and 1442 E. Jefferson St. (Site). The Site is located on the north side of Jefferson Street between 14th and 15th streets. Between 2002-2016, these properties were acquired by the Aviation Department under the Voluntary Acquisition and Relocation Services (VARS) Program.
The Site is within the Eastlake-Garfield Transit-Oriented Development (TOD) District, approximately 1,100 feet east of the 12th and Jefferson streets light rail station. In 2015, City Council adopted the Eastlake-Garfield Policy Plan (TOD Plan), a guide for transforming the District into a walkable, opportunity-rich community. The TOD Plan calls for the Site to be rezoned from R-5 to the Walkable Urban Code: T5:5, allowing for building height up to 56 feet.
The Site is also located within the study boundary for the Aviation Department’s Land Reuse Strategy (LRS). The LRS is focused on redeveloping properties west of Phoenix Sky Harbor International Airport. Its goals include stabilizing and strengthening neighborhoods, creating a sense of identity for and elevating perceptions of the study area, and expanding economic opportunity. The LRS has identified the Site as a key location (referred to in the LRS as Spark Area 1) that can further these goals and inspire the development of privately owned vacant land along Jefferson Street. The LRS envisions the following for the Site:
- A mixed-use project primarily consisting of residential use with ground floor activation and amenities.
- Mixed-income residential units, consisting of both market-rate units and non-market rate units (affordable and workforce).
- Consistency with TOD Development Standards and Guidelines.
- Amenities and uses that enhance the neighborhood and honor its history.
With approval, and consistent with the Implementation Phase of the LRS, the Community and Economic Development Department will seek offers to redevelop the Site into a mixed-use, mixed-income residential project. Offer requirements will include:
- A member of the offeror's team must demonstrate experience successfully completing at least one vertical mixed-use development of at least three stories in the last five years.
- Project must be mixed-income and offer both affordable and workforce housing units, which in aggregate must represent at least 50 percent of all units.
- Offer a value equal to or greater than the Site's appraised value. The Site was appraised in October 2023 at a value of $1,524,000.
Affordable housing units will be made available to households earning incomes not greater than 60 percent of the Area Median Income (AMI), while workforce units will be available to households earning incomes between 80 percent and 120 percent of AMI.
The final negotiated project should incorporate the following:
- A variety of unit sizes across all proposed classifications of unit types (affordable, workforce and market-rate).
- If the project includes multiple buildings, each building must include a mix of all proposed classifications of unit types.
- Housing units across all included classifications of unit types must be available for occupancy within 36 months of escrow closing.
- No demarcation between, or segregation of, proposed unit-type classifications.
A prior request for proposals (RFP) for the Site in 2021 received no proposals. In December 2022, following the RFP process, Aviation received a determination from the Federal Aviation Administration (FAA) to allow for the sale and disposition of a limited number of VARS acquired properties, including the Site. Staff believes the new determination allowing for a sale will generate competitive offers, which will be reviewed by staff to select the offer providing the best overall project and value to the City. Following negotiations with the selected offerer, business terms will be brought to the Transportation, Infrastructure and Planning Subcommittee for information, the Economic Development and Housing Subcommittee for review and recommendation, and then to the full City Council for consideration.
Financial Impact
There is no impact to the General Fund as a result of this action.
Previous Council Action
A request to issue an RFP for this Site was previously authorized by the City Council by a vote of 8-1 at the March 4, 2020 Formal Council Meeting. The RFP received no proposals.
Location
The Site includes seven individual parcels, collectively known as 1414 E. Jefferson St. The parcel addresses range from 1414 through 1434 E. Jefferson St. and a non-contiguous parcel at 1442 E. Jefferson St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Managers John Chan and Mario Paniagua, and the Aviation and Community and Economic Development departments.