Title
Acquisition of Building Located at 8130 North Black Canyon Highway (Ordinance S-49566)
Description
Request to authorize the City Manager, or his designee, to negotiate and enter into a purchase agreement and any other agreements necessary with Mohit Developers, LLC, for the purchase of the Super 8 Motel building located at 8130 N. Black Canyon Highway (Site). Further request authorization for the City Controller to disburse all funds related to this item. The acquisition cost is $9.145 million and an estimated $2.555 million will be allocated for additional fees associated with the acquisition and minor repairs prior to a future renovation for a total not to exceed amount of $11.7 million. There is no impact to the General Fund for the purchase of the Super 8 Motel building. Funding is available through the City's allocation of the American Rescue Plan Act (ARPA) funding received from the federal government and is under the Affordable Housing and Homelessness category of the strategic plan.
Report
Summary
The City of Phoenix will acquire the Site and convert it to affordable rental housing units with on-site supportive services. The site will require future renovations to ensure the units are safe and sanitary. The hotel conversion will also support a larger community revitalization effort including Innovation 27, just to the south of the hotel property and The Haven, a building to the north of the future housing complex that is currently being renovated by a private nonprofit entity to be an emergency shelter for seniors. All three projects will help in the revitalization of the community.
Financial Impact
Total funding for the purchase of the Site, including any fees and minor repairs, will not exceed $11.7 million. There is no impact to the General Fund. Funding is available through the City's allocation of the ARPA funds received from the federal government.
Concurrence/Previous Council Action
- The City Council previously approved the ARPA Strategic Plan during the June 8, 2021, and June 7, 2022, Policy Sessions.
- The City Council passed the use of $11.7 million in reallocated ARPA funds for the acquisition and renovation of a hotel on Dec. 14, 2022.
Location
8130 N. Black Canyon Highway
Council District: 5
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Human Services Department.