Title
Amend City Contract 151796 Disposition and Development Agreement between the City of Phoenix and RXR-KORMAN ASPIRE OWNER, LLC (Ordinance S-50673)
Description
Request to authorize the City Manager, or his designee, to amend the Disposition and Development Agreement (DDA), City Contract 151796, as amended, with RXR-KORMAN ASPIRE OWNER, LLC (Aspire), to modify certain business terms and to enter into other agreements as necessary. There is no impact to the General Fund as a result of this action. Further request to authorize the City Treasurer to accept funds associated with this request.
Report
Summary
On June 21, 2018, the Developer submitted its proposal in response to the 2017-2018 Downtown Development Request for Proposals (RFP) requesting the City's consideration of a Government Property Lease Excise Tax (GPLET) transaction for a high-rise development project on a 28,000 square-foot property located at 601 N. 3rd Ave. (Site). The Site was formerly used as a parking lot and most recently leased by Arizona State University for the downtown campus. On Feb. 6, 2019, City Council approved business terms with Aspire, which included the requirement for a minimum of 8 percent of the housing units (approximately 20) to be reserved for workforce housing during the term of the lease. This amendment will replace the workforce housing requirement of approximately 20 units with a contribution to the City's Affordable Housing Trust Fund in the amount of $1,131,000 for use with affordable housing projects.
No other terms or conditions within the DDA are proposed to be modified.
Financial Impact
There is no impact to the General Fund as a result of this action. The one-time contribution of $1,131,000 will be deposited into the Affordable Housing Trust Fund account.
Concurrence/Previous Council Action
Ordinance S-45360 authorizing the DDA was passed by the City Council on Feb. 6, 2019.
Location
601 N. 3rd Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Community and Economic Development Department.