Title
Authorization to Enter Into a Development Agreement with JAG Development, LLC and Studio Ma, Inc. for the Sale and Development of City-Owned Property at 36 W. Holly St. and 42 W. Holly St. (Ordinance S-45580)
Description
Request to authorize City Manager, or his designee, to enter into a development agreement, and other agreements as necessary (Agreements), with JAG Development, LLC and Studio Ma, Inc., or its City-approved designee, (Developer) for the sale and development of City-owned property located at 36 W. Holly St. and 42 W. Holly St. (Site). The sale of the Site will generate a one-time $250,000 sales proceed to the City. Further request authorization for the City Treasurer to accept funds related to this item.
Report
Summary
In 2006, the Human Services Department purchased the approximately 24,000 square foot Site, located in Midtown Phoenix near the Willo Neighborhood, as part of the acquisition of the Central Avenue office building, home to the Family Advocacy Center and Childhelp, for the future development of parking. Parking is the only permitted use of the Site under the existing zoning. The need for parking has not materialized and, in April 2018, the Community and Economic Development Department (CEDD) issued the Holly Street Parcels Sale and Development Request for Proposals (RFP) seeking proposals to develop the Site.
Five proposals were received, all of which were responsive. On July 25, 2018, an evaluation panel interviewed all five proposers and selected the Developer as the recommended proposer.
The Developer has agreed to purchase the Site for $250,000, which is above the $242,000 minimum purchase price listed in the RFP, and redevelop the Site with eight, two-story, single family attached homes. This project, located on the north side of Holly Street between Central and 1st avenues, will activate a vacant lot that serves as a transition between the Historic Willo Neighborhood to the west and the intense commercial and multifamily uses along Central Avenue. The proposal will also bring new residents to Midtown and supports the goals of the Midtown Transit-Oriented Development (TOD) Policy Plan. Furthermore, this project will put the 0.55-acre Site back into private ownership, which will generate net new property tax revenues. Rezoning will be required, and the Developer has agreed to comply with the recommendations of the Midtown TOD Policy Plan to rezone the property to the Walkable Urban Code. Title for the Site will transfer upon approval of zoning that allows the use, and issuance and receipt of payment for building permits.
Two unsuccessful proposers protested the award recommendation. In both cases, the CEDD Director upheld the award recommendation.
Financial Impact
The sale of the Site will generate a one-time $250,000 sales proceed to the City.
Concurrence/Previous Council Action
This item was recommended for approval at the Planning and Economic Development Subcommittee meeting on April 2, 2019, by a vote of 4-0.
Public Outreach
Staff presented this proposal to the Willo Neighborhood Association on Jan. 10, 2019 and the Midtown Neighborhood Association on Feb. 20, 2019.
Location
36 W. Holly St. and 42 W. Holly St.
Council District: 4
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Community and Economic Development and Human Services departments.