Title
Request to Amend City Contract 140687 with Phoenix Ballpark Residences, LLC (Ordinance S-44031)
Description
Request to authorize the City Manager, or his designee, to amend City Contract 140687 as amended, Disposition and Redevelopment Agreement (DRA), with Phoenix Ballpark Residences, LLC (Developer) to modify the completion of construction date for the Phoenix Ballpark Residences redevelopment project to May 15, 2020. The General Fund is not impacted by this action.
Report
Summary
Phoenix Ballpark Residences is an infill redevelopment project located in the warehouse district in downtown Phoenix. The project will adaptively re-use two historic buildings (Arvizu's El Fresnal Grocery Store and Gerardo's Building) while adding approximately 276 residential rental units and 385 structured parking spaces, with an estimated capital investment of $43 million.
The City and Developer entered into the DRA on June 16, 2015, which included typical performance benchmarks such as commencement of construction and completion of construction. In December 2015, the Developer met the conditions for commencement of construction which included acquiring permits to begin the demolition and relocation of utilities. Over the past two years, many unforseen circumstances have arisen that have slowed progress and contributed to delays in the project schedule including unavoidable development team changes, complete redesign and coordination of private utilities, infrastructure design changes and other challenges. The Phoenix Ballpark Residences, LLC team is committed to building this project and is seeking approval of a 30-month extension to complete construction.
This amendment will modify Section 301.3 of the DRA to change the completion of construction benchmark from 24 months to a new completion of construction date of May 15, 2020.
All other terms and conditions of the DRA will remain unchanged.
Contract Term
The DRA was executed on June 16, 2015 and the request will provide an additional 30 months to complete construction. Upon completion of construction, the parties will enter into a 20-year lease. This action will not change the term of the lease.
Financial Impact
The General Fund is not impacted by this action.
Concurrence/Previous Council Action
This contract was authorized through Ordinance S-41345 on Dec. 17, 2014 by a 7-2 vote.
Location
The project includes several parcels within the Warehouse District and on the north and south sides of Buchanan Street, bounded by 3rd and 4th streets.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Community and Economic Development Department.