Title
Development Agreement between City of Phoenix, CA/DRI Phoenix JV, LLC and The Masonic Temple Association of Phoenix, Inc. for the Rehabilitation and Conservation Easement for Property Located at 345 W. Monroe St. in Exchange for Downtown Code Sustainability Bonus Credits for the New Development at 706 N. 4th St. and 721 N. 3rd St. (Ordinance S-45492)
Description
Request to authorize the City Manager, or his designee, approval to enter into a Development Agreement among the City of Phoenix (City), CA/DRI Phoenix JV, LLC (Developer of New Development) and The Masonic Temple Association of Phoenix, Inc. (Owner of Historic Property) to allow the sustainability bonus credits from rehabilitation and recordation of a conservation easement at 345 W. Monroe St. (Masonic Temple) to apply to Phase II and Phase III of the New Development at 706 N. 4th St. and 721 N. 3rd St., respectively. There is no financial impact to the City of Phoenix.
Report
Summary
Section 1223(C) of the Phoenix Zoning Ordinance allows up to a possible 20 sustainability bonus credits for a minimum 30-year conservation easement and up to 30 credits for the rehabilitation of a building on the Phoenix Historic Property Register. These credits can be applied to projects within the Downtown Code boundary. Credits may be used for additional height, density, lot coverage or parking minimums/maximums, as applicable. Challenges exist with implementation of these credits due to time constraints with completion of the rehabilitation projects in concert with the site plan approval process. This development agreement will memorialize the duties and obligations of the Owner, the Developer and the City and allow the expeditious timing of the New Development to occur simultaneously with the rehabilitation of the historic property.
The Masonic Temple was listed on the Phoenix Historic Property Register in October of 1996. It is one of the few notable examples of Neo-Classical style buildings in the downtown area. The building has been continuously occupied by the Freemasons since it was built in the 1920's and is home to 14 Masonic organizations including three 501(c)3 organizations and Arizona Lodge No. 2, which was formed in Arizona in 1879. The Neo-Classical style is symbolic of the democratic ideals of the Masons. Although the original design and architectural ornamentation are intact, the building is in need of rehabilitation. Swan Architects completed a building condition assessment in 2010. Critical issues to address included repair of the original wood windows and doors as well as roof repairs. The Historic Preservation Project Agreement will contain the Scope of Work for the rehabilitation that addresses the most critical concerns first.
Once the Development Agreement is executed, the Owner will execute the conservation easement and the City will record it. The Developer will deposit $500,000 in a neutral, third-party construction escrow account prior to issuance of vertical building permits for the New Development conditioned on a total of 50 sustainability bonus credits being credited to the New Development.
Financial Impact
There is no financial impact to the City of Phoenix.
Concurrence
This item was recommended for approval at the Planning and Economic Development Subcommittee meeting on March 13, 2019, by a vote of 4-0.
Location
345 W. Monroe St., 706 N. 4th St. and 721 N. 3rd St.
Council Districts: 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Planning and Development Department.