Title
Updated Central Business District Expansion Option
Description
This report provides an update to the Economic Development and Equity Subcommittee for the potential expansion of the Phoenix Central Business District (CBD).
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
This item is a follow up to the June 13, 2023, Economic Development and Equity Subcommittee meeting where direction was given to bring a refined option for expansion of the CBD. The City established its CBD on Dec. 28, 1961. This original area was approximately 30 blocks within the City Center and was subsequently expanded in 1987 by the City Council to include just over two square miles of downtown (Attachment A). The purpose of creating a CBD was to establish a “Phoenix Tax Incentive District” to encourage private investment in the construction of substantial new improvements.
In 2018, changes to Arizona Revised Statutes (A.R.S.) restricted the size of a CBD to not more than two-and-one-half percent of that total land area of the municipality. In Phoenix, this is just over 12 square miles. Additionally, the CBD must be contiguous and geographically compact with a form that has a length that is not twice its width. The refined options for Subcommittee consideration meet these requirements. Other than A.R.S. 42-6209, there are no specific statutory requirements for the establishment of a CBD.
Concurrence/Previous Council Action
Updates on the Phoenix Central Business District were presented to the Economic Development and Equity Subcommittee on Feb. 22, 2023 and June 14, 2023.
Public Outreach
With direction to move forward with a potential expansion, staff will conduct a community outreach process to engage with the community, the business community and other impacted stakeholders. The results of the community outreach would be presented to the Economic Development and Equity Subcommittee in the fall of 2023.
Department
Responsible Department
This item is submitted by Interim Deputy City Manager John Chan and the Community and Economic Development Department.