Title
Revocable License with Option to Purchase Real Property Owned by the State of Arizona at 1537 W. Jackson St. (Ordinance S-50021)
Description
Request to authorize the City Manager, or his designee, to enter into a revocable license agreement with an option to purchase real property owned by the State of Arizona at 1537 W. Jackson St. and to execute all agreements necessary in furtherance of this ordinance. Further request authorization for the City Controller to disburse, and for the City Treasurer to accept, all funds related to this item.
Additionally, request the City Council to grant an exception pursuant to Phoenix City Code section 42-20 to authorize inclusion in the documents pertaining to this transaction of indemnification and assumption of liability provisions that otherwise would be prohibited by Phoenix City Code section 42-18 as required by the State of Arizona.
Report
Summary
The City will enter into short-term revocable license with an option to purchase real property (“Agreement”) owned by the State of Arizona (“State”) located at 1537 W. Jackson St. The property is zoned A-1 and consists of 4.22 acres, improved with an approximate 12,000 square foot industrial storage facility. The term of the license will not extend beyond Oct. 1, 2023, and the State may revoke the license for any reason with 30 days' written notice.
The purchase price includes consideration for the license fee and fee title to the property via quitclaim deed, not to exceed the market value set forth in the State’s appraisal, to be reviewed and approved by the Finance Department's Real Estate Division. As part of the Agreement, the City will pay a non-refundable deposit of $1,700,000 in addition to the purchase price for the State's cost to relocate operations from this location. The Agreement will include an Intergovernmental Agreement with Arizona Department of Public Safety to provide the City's Police Department primary jurisdiction over the property. The Agreement will contain additional terms and conditions acceptable to the City.
During the license period, the Office of Homeless Solutions will work with the Planning and Development Department on approvals for a use of the property to assist the unsheltered population. The City will move forward with the purchase of the property, to be conveyed by quitclaim deed, if due diligence is deemed satisfactory and the property is approved for the desired use.
The parcels included in this request are identified by Maricopa County Assessor's parcel number and address:
- 112-07-164 located at 1501 W. Jackson St.
- 112-07-165 located at 1537 W. Jackson St.
- 112-07-166A located at 312 S. 15th Ave.
Financial Impact
Funding in the amount not to exceed a total of $5.4 million, plus administrative and closing costs, is available through grant funds in the Human Services Department and the Office of Homeless Solutions operating budgets.
Concurrence/Previous Council Action
On Oct. 27, 2020, the Strategies to Address Homelessness Plan was approved by the City Council.
Location
Southwest corner of W. Jackson Street and S. 15th Avenue.
Council District: 7
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays, Deputy City Manager Gina Montes, the Office of Homeless Solutions, and the Human Services, Police and Finance departments.