Title
Authorization to Issue a Request For Proposals for the Sale and Redevelopment of City-Owned Parcel at 30 N. 1st St.
Description
Request authorization to issue a Request for Proposals (RFP) for the sale and development of a City-owned parcel located at 30 N. 1st St., on the southeast corner of Central Avenue and Adams Street in downtown Phoenix, for an urban, infill development project, and further request authorization to begin negotiations with the successful proposer.
Report
Summary
The City owns Assessor Parcel Number (APN) 112-28-131 containing approximately 26,000 square feet (about 0.59 acres) of land at 30 N. 1st St. (Site). City Council authorized the acquisition of this entire block in 1983 for redevelopment purposes. In 1999, the City and Ryan Companies U.S. Inc., entered into a development agreement and subsequent lease that facilitated the development of the Phelps Dodge Tower, now known as One North Central, and was the home to the Freeport McMoRan company headquarters. After completion of the tower, the remaining block, except the historic Hanny's building, was paved as a parking lot. Due to increased market interest and development in the downtown area, staff is seeking authorization to sell this parcel for new development in downtown.
While the Site has provided approximately 30 public parking spaces in the heart of Downtown for many years, the prominent location at the corner of Adams Street and Central Avenue, the recent construction of a portion of the Adams Street Activation plan and its proximity to light rail and the Phoenix Convention Center, staff believes that this RFP will find significant development interest. The Site does have several development constraints which will need to be resolved including: an APS Utility No Build Easement; a non-exclusive Driveway Easement; and a Service Area/Utility Easement; however, recent development interest and increased land values may assist in creative solutions to these items.
Proposers will be required to provide detailed information including investment and construction costs, operating pro-forma, financing details and project schedules. The RFP will seek a proposal that reflects:
- Urban infill development.
- Innovative design with functional and appropriate transitions to adjacent buildings.
- Enhanced pedestrian-oriented amenities promoting walkability.
- Transit Oriented Development concepts.
- Implements the Adams Street Activation Plan concepts.
The site was appraised at $2,730,000 in August 2017, which will be listed as the minimum purchase price in the RFP. Proposals will be evaluated by a panel that includes City staff, development and community representatives. The evaluation criteria will be:
1. Concept to Activate the Site (0-375 points).
2. Public Benefit and Financial Return to the City (0-325 points).
3. Proposer's Qualifications & Experience (0-300 points).
Staff plans to issue this RFP in late 2017. Staff will negotiate business terms with the recommended proposer. The recommended proposal and business terms will be brought to the Downtown, Aviation, Economy and Innovation Subcommittee for review and recommendation.
Concurrence/Previous Council Action
This item was heard by the Downtown, Aviation, Economy and Innovation Subcommittee on Oct. 4, 2017 and approval was recommended by a vote of 3-0.
Public Outreach
Staff presented to the Downtown Voices Coalition, provided information to the Downtown Neighborhood Association, and met with adjacent property owners and property managers to seek their input.
Location
30 N. 1st St.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Community and Economic Development Department.