Title
Authorization to Amend Ordinance S-42761, Disposition and Purchase Agreement with Metrowest Development, LLC (Ordinance S-43488)
Description
Request authorization for the City Manager, or his designee, to amend Ordinance S-42761, to modify performance benchmarks as needed to allow for the execution of the Purchase and Sale Agreement (PSA) of three City-owned parcels located between 2nd and 3rd avenues, on the north side of McKinley Street in downtown Phoenix.
Report
Summary
In June 2015, the Community and Economic Development Department issued a Request for Proposals (RFP) for the disposition and redevelopment of three Neighborhood Services Department-owned parcels located between 2nd and 3rd avenues, on the north side of McKinley Street (Site). Metrowest Development, LLC (Developer) was the successful proposer and was awarded the contract.
On July 1, 2016, City Council authorized the City Manager to enter into agreements for the sale of the Site through Ordinance S-42761 (Ordinance). Staff has been in negotiations with the Developer and is prepared to execute the PSA; however, the time allowed for negotiations and execution of the PSA pursuant to Section 2 of the Ordinance has passed. This amendment request is to modify Section 2, first bullet, of the Ordinance to allow for execution of the PSA to occur within 12 months, replacing the prior time of six months.
The developer also has requested an extension for the commencement of development of the West Parcel, which is the second phase of the project. This amendment request also will modify the performance benchmark listed in Section 2, fourth bullet, of the Ordinance to allow a 12-month extension for starting development of the West Parcel, changing the benchmark from 18 to 30 months. Metrowest is an established local developer and has invested in and redeveloped several sites in downtown Phoenix, and the PSA is ready to be signed upon the approval of this amendment.
Concurrence/Previous Council Action
City Council approved Ordinance S-42761 on July 1, 2016.
Location
The Site is located at 808 N. 2nd Ave. and 801 N. 3rd Ave. in downtown Phoenix.
Department
Responsible Department
This item is submitted by Deputy City Managers Deanna Jonovich and Paul Blue, and the Neighborhood Services and Community and Economic Development departments.