Title
Update on the Phoenix Central Business District
Description
This report provides an update to the Economic Development and Equity Subcommittee on the Phoenix Central Business District (CBD) and downtown redevelopment areas within the CBD.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
Central Business District
The City of Phoenix established its CBD on Dec. 28, 1961. This original area was approximately 30 blocks within the City Center and was subsequently expanded in 1987 by the City Council to include just over two square miles of downtown (Attachment A). 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, changes to Arizona Revised Statutes (A.R.S.), restricted the size of a CBD to not more than two-and-a-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. Modification of the CBD is possible; however, the new boundary for the CBD would need to comply with the recently modified requirements regarding the size and shape of the district boundary.
Use of Central Business District
Other than A.R.S. 42-6209, there are no specific statutory requirements for the establishment of a CBD. Typically, a city established a CBD to provide for business assistance programs or in order to respond to General Services Administration (GSA) requests to locate certain services within a CBD. In Arizona, the Government Property Lease Excise Tax (GPLET) statutes create another use for a CBD. Outside of the CBD, redevelopment may benefit from the tools used within the CBD to encourage projects, although the advantages may not be as significant.
Under current state and federal laws, there are no other specific assistance tools being utilized by the City that are affected by a CBD designation.
Council Districts: 7 and 8
Department
Responsible Department
This item is submitted by Interim Deputy City Manager John Chan and the Community and Economic Development Department.