Title
Amend City Contract with Ironline Partners, LLC to Extend Escrow for Sale of 135 N. 2nd Ave. (Ordinance S-44111)
Description
Request to authorize the City Manager, or his designee, to amend City Contract 144573 with Ironline Partners, LLC (Developer) to amend terms pertaining to the due diligence period and to extend the close of escrow by 60 days. The General Fund is not impacted by this action.
Report
Summary
Staff has successfully entered into a disposition and redevelopment agreement with Ironline Partners, LLC, City Contract 144573, for the sale and redevelopment of the City-owned former Human Resources (HR) Building at 135 N. 2nd Ave. The Developer has started their due diligence items but needs additional time to perform a thorough review of the building. On May 31, 2017, City Council approved an initial extension for the due diligence period. Working with staff, the Developer has secured commitments for adequate parking for the building. Staff requests the following amendments to the Ordinance:
1) An additional 60 days be added to the current due diligence period.
2) The Developer shall receive sufficient permits to commence the project and close escrow by Jan. 31, 2018.
All other terms and conditions of the City Contract 144573 shall remain in full force and effect.
Financial Impact
The General Fund is not impacted by this action.
Concurrence/Previous Council Action
City Council originally approved Ordinance S-43138 on Jan. 11, 2017, and amended the ordinance via Ordinance S-43587 on May 31, 2017.
Location
The former HR Building is located at 135 N. 2nd Ave. at the southeast corner of Monroe and 2nd Avenue in downtown Phoenix.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Community and Economic Development Department.