Title
Authorization to Issue Request for Proposals for Sale and Redevelopment of City-Owned Knipe House Properties at 1009, 1016 and 1025 N. 2nd St.
Description
Request authorization for the City Manager, or his designee, to issue a Request for Proposals (RFP) for the sale and redevelopment of City-owned properties located on 2nd Street north of Roosevelt Street for a mixed-use, infill development project, and authorization to begin negotiations with the recommended proposer.
Report
Summary
The City owns 65,375 square feet (about 1.5 acres) of property on both sides of North 2nd Street between Roosevelt and Portland streets (Site). The Site includes several vacant parcels plus the historic Knipe House. Vacant portions of the Site are currently licensed to the Roosevelt Row Community Development Corporation for a community garden and to nearby businesses for surface parking. These licenses expire in December 2017. As a result of input from the neighborhood and renewed business interest, staff is seeking authorization to sell these underutilized parcels and reactivate the Knipe House.
The Knipe House, which was built by Leighton G. Knipe in 1909, entered City-ownership in 2004 and was subsequently placed on the City’s Register of Historical Properties. In 2010, the house was severely damaged in a fire. Through insurance proceeds, the roof was replaced and the structure stabilized. In 2012, an RFP to reactivate the house and sell the land was completed; however, the selected proposer was unable to initiate the proposed project. Over several months in 2015 and 2016, staff and Downtown Phoenix, Inc., sought feedback from the community on priorities for future redevelopment of the Site. After extensive outreach, the community's top priority remains the renovation and reuse of the Knipe House.
As part of their proposals, proposers may include properties adjacent to the Site for which they can demonstrate control. The zoning for the Site is Downtown Code - Evans Churchill West character area, which allows for mixed-use development with a maximum building height of 250 feet. An appraisal for the Site is currently underway and will be issued with the RFP.
Proposers will be required to:
- Preserve, rehabilitate, and adaptively reuse the Knipe House in its current location within the first phase of development.
- Provide public parking spaces for the general public's use.
- Offer a proposed purchase price and public benefit that equal or exceed the Site's appraised value.
- Provide detailed information, including investment and construction costs, operating pro forma, financing details and project schedules.
The desired project will feature:
- Urban, mixed-use, infill development.
- Ground-floor activation.
- Community gathering space, community gardens or open space.
- Compliance with all applicable regulations, guidelines, and adopted plans.
- Diverse design/character, appropriate for the Evans Churchill area, for the proposed developments on each side of 2nd Street.
- Timely construction of the proposed development.
Proposers will be encouraged to conduct community outreach and incorporate community input into their proposed developments.
Proposals will be evaluated by a panel that includes City staff as well as development and community representatives. The RFP will include standard terms, conditions and other necessary requirements and the following evaluation criteria:
1. Concept to Redevelop the Site and Adaptively Re-use the Knipe House (0-350)
- Proposed development
- Plan to preserve, rehabilitate and adaptively re-use the Knipe House in place
- Shared parking model
- Ground floor activation
- Consistency with City plans and ordinances
- Sustainability elements
- Alignment with goals of community and adjacent neighborhoods
2. Public Benefit and Financial Return to the City (0-250)
- Proposed purchase price
- Other tangible public and community benefits
- Requested City assistance, if any
3. Business Plan (0-200)
- Proposed project's feasibility
- Project budget and pro forma
- Timeline
- Construction mitigation plan
4. Qualifications, Experience and Financial Capacity of the Proposer (0-200)
- Number of years and type of experience financing, developing, completing and managing similar scaled projects
- Demonstrated financial capacity to successfully develop and complete proposed project
It is anticipated the RFP will be issued in Summer 2017. Staff will negotiate business terms with the recommended proposer. The recommended proposal and business terms will be brought to Subcommittee for review and recommendation, and then to the full City Council for approval.
Public Outreach
Staff has presented to the following community groups and organizations: Evans Churchill Community Association, Roosevelt Row Merchants Association, the Historic Preservation Commission, Central City Village Planning Committee and Downtown Voices Coalition.
Concurrence/Previous Council Action
The Downtown, Aviation, Economy and Innovation Subcommittee recommended approval of this item on May 3, 2017, by a vote of 4-0.
Location
The City-owned properties are located at 1009, 1016 and 1025 N. 2nd St.
Department
Responsible Department
This item is submitted by Deputy City Manager Paul Blue and the Community and Economic Development Department.