Title
Request to Enter into a Development Agreement with QTS Phoenix II, LLC (Ordinance S-50411)
Description
Request authorization for the City Manager, or his designee, to enter into a development agreement with QTS Phoenix II, LLC for public open space to satisfy requirements in a Planned Unit Development at 40th Street and McDowell Road.
Report
Summary
QTS Phoenix II, LLC is the owner of real property consisting of approximately 97.85 acres located at the southwest corner of 40th Street and McDowell Road. On Dec. 7, 2017, the Phoenix City Council approved Rezoning Case No. Z-62-17-8 (via Ordinance No G-6396), which rezoned the site to Planned Unit Development (PUD) (the “McDowell Road Data Center PUD”), to accommodate owner’s proposed development of the site with a multi-building data center campus known as the “McDowell Road Data Center.” As part of the development of the McDowell Road Data Center, and to satisfy the “open space area” requirements in the McDowell Road Data Center PUD, the owner will develop a portion of the southwest corner of the site with a publicly accessible park-like outdoor space. Additionally, for the duration of the agreement, the owner will be responsible to maintain, repair and make necessary replacement of park improvements located on the site so as to keep the improvements in a reasonable condition for its intended purposes in accordance with the maintenance standards of the Parks and Recreation Department. The City recognizes the public benefits that will accrue from the construction of park improvements within the approximate 2.5-acre outdoor space park site.
Contract Term
The initial term of the agreement will be 20 years, effective on or about Dec. 18, 2023, with automatic renewals for additional 10-year periods every 10 years, unless the City chooses not to renew prior to a renewal period.
Financial Impact
There is no impact to the General Fund.
Concurrence/Previous Council Action
City Council approved Rezoning Case No. Z-62-17-8 (Ordinance G-6396) on Dec. 17, 2017.
Location
40th Street and McDowell Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson and the Parks and Recreation Department.