Title
West Ground Transportation Center Request for Qualifications and Revenue Contract Solicitation
Description
This report provides an update on a potential development opportunity at Phoenix Sky Harbor International Airport (Airport) associated with the future West Ground Transportation Center (West GTC) of the PHX Sky Train (Train) extension and requests City Council authorization to issue a Request for Qualifications and a subsequent Revenue Contract Solicitation.
Report
Summary
The East Economy lot and garages contain nearly 9,500 of the Airport's 11,000 economy parking spaces. The East Economy parking facility is served by the Train and offers affordable parking rates and convenient access to the Airport terminals. The facility regularly fills to capacity due to high demand. By contrast, the West Economy lot has just over 1,500 surface parking spaces with neither bus nor Train service. With 86 percent of the parking inventory, the Airport's economy parking options are heavily weighted to the east end of the Airport. This disproportionality causes approximately half of the 800,000 economy parkers living on the west side of the Airport to drive past their terminal each year in order to park. This condition will be further magnified by the closure of Terminal 2 and the associated West Economy lot by 2021.
In October 2016, the Phoenix City Council authorized the Airport to proceed with the completion of the Train. Construction of this final stage of the Train will extend the system's transit access to the Rental Car Center, a future West GTC, and make provisions for a station at a future west terminal location.
It is anticipated that new commercial development opportunities will be created around the new West GTC station. This station is expected to provide an opportunity to better serve the parking and ground transportation needs of Phoenix residents who live west of the Airport. With its strategic location near 24th Street and Buckeye Road, the West GTC station could potentially be a dense, multi-modal hub including a new West Economy parking garage, commercial ground transportation options, hotel, office, and other commercially viable development. This location would be particularly convenient for Phoenix residents in the central and western parts of the city who could easily access a West Economy parking garage using Interstate 10, or Buckeye Road. With its connection to the METRO Light Rail at 44th Street and Washington, the first stage of the Train leveraged the public's investment in mass transit. The second stage will further leverage the Airport's close proximity to the downtown area and freeway access to the rest of the City.
A Request for Information (RFI) was issued on May 5, 2017 to developers interested in development on the West GTC station site. Six responses were received by the July 14, 2017 due date. The respondents supported the need for additional parking on the west side of the airport, and expressed interest in building a new West Economy garage and associated commercial development. The respondents also sought the city's consideration of a long-term lease of all of the Airport's parking facilities. This lease structure would require the developer to make an up-front payment and provide ongoing lease payments to the city in exchange for the right to operate the Airport's parking lots and structures.
Based upon the results of the RFI submissions, staff requests City Council authorization to issue a Request for Qualifications and subsequent Revenue Contract Solicitation for a comprehensive development agreement that would include a new West Economy parking garage and a commercial development on the West GTC site, and a long-term Airport parking concession.
Concurrence/Previous Council Action
This report was reviewed by the Business and Development Subcommittee on Oct. 5, 2017, by the Phoenix Aviation Advisory Board on Oct. 19, 2017, and by the Downtown, Aviation, Economy and Innovation Subcommittee on Feb. 7, 2018.
Public Outreach
The Airport held a public pre-response meeting to discuss the RFI process with interested developers on May 22, 2017.
Location
Phoenix Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.