Title
Maricopa County American Rescue Plan Act Subrecipient Funding for Innovation 27 (Ordinance S-51104)
Description
Request to authorize the City Manager, or his designee, to execute an intergovernmental agreement (IGA) with Maricopa County to accept American Rescue Plan Act (ARPA) funding in the amount of $1 million. Further request to authorize the City Treasurer to accept and the City Controller to disburse funds for the Workforce Education and Training Facility project known as the Innovation 27 Workforce Training and Education Collaborative (Innovation 27). Innovation 27 is also supported by the City's allocation of ARPA funding received from the federal government and is under the City's Workforce Training Facility and Training Program category. There is no impact to the General Fund.
Report
Summary
Innovation 27, located at 2526 W. Northern Ave., is a former big box department store consisting of 128,000 square feet (Site). The Site has been vacant for more than seven years and is one of the last large infill sites available for redevelopment along the Interstate-17 Freeway. It is also located along the 27th Avenue Corridor that has continuously been affected by an increase in violent crime, prostitution, drug use, and blight. With the extreme loss of employment caused by the COVID-19 Pandemic, the community further fell into decline, increasing its susceptibility for these activities to continue. This led to several community visioning sessions that resulted in the desire to repurpose the Site into an innovation center offering education, workforce training and job opportunities for the community.
In 2020, the City commissioned a feasibility study resulting in a recommendation to partner with government education providers to offer the education and workforce training opportunities sought by the community. In 2021, the City partnered with Arizona State University, Maricopa Community College District, and Western Maricopa Education Center to commission a building assessment that addressed the structural and mechanical requirements needed to support the various educational uses considered for the Site. In 2023, the City purchased the Site. The City continues its planning and collaboration with the above-referenced partners, as well as with Northern Arizona University, to provide innovative education, certificate and training programs to the community.
Maricopa County has expressed interest in joining the project and has allocated the use of ARPA funds to support the development of the project.
Contract Term
Term will be approximately two years, with one six-month renewal option.
Financial Impact
Total funds to be accepted are $1 million in ARPA funding from Maricopa County. There is no impact to the General Fund.
Concurrence/Previous Council Action
City Council allocated $15 million in ARPA funds for the Workforce Training Facility and Training Program on June 8, 2021. On April 20, 2022, City Council approved an additional $3.5 million of ARPA funding and the purchase of the Site for $12 million.
Location
2526 W. Northern Ave.
Council District: 5
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Community and Economic Development Department.