Title
Amendment to the Intergovernmental Agreement between the City of Phoenix and Arizona State University for the Development of the Health Solutions Center at the Phoenix Biosciences Core (Ordinance S-49043)
Description
Request to authorize the City Manager, or his designee, to amend the Intergovernmental Agreement with Arizona State University (ASU), to extend and modify certain business terms. There is no impact to the General Fund as a result of this action.
Report
Summary
On May 10, 2016, City Council authorized an Intergovernmental Agreement (IGA) (City Contract No. 142599) with ASU for the development of approximately 1.5 million square feet of biomedical facilities at the Phoenix Biosciences Core (PBC). Subsequently, the City and ASU entered into a ground lease (City Contract No. 149060) for Phase 1 of the development of the Health Solutions Center, now called 850 PBC and which completed construction December 2020. Since the agreements were originally envisioned, the campus and development partnerships have grown. As a result of the growth and better understanding of changing market conditions, certain contract terms are no longer in the best interest of the parties or the PBC.
As it exists today, the IGA states that ASU shall, within 180 days of receiving the certificate of occupancy for the prior phase, issue a notification exercising their option to develop the next phase of the development and must complete the design and construction of the subsequent phase no later than thirty months following the prior phase completion. This amendment will replace the existing timeline requirements with updated timing as follows:
- No later than 180 days from prior phase completion, ASU and the City will meet to determine phasing schedule for completion of subsequent phase.
- ASU and the City shall use commercially reasonable efforts to enter into the subsequent phase lease within 24 months, but no later than 36 months from the prior phase completion.
- Completion of subsequent phase shall occur no later than 36 months from execution of subsequent phase lease.
Financial Impact
There is no impact to the General Fund as a result of this action.
Concurrence/Previous Council Action
The Economic Development and Equity Subcommittee recommended approval of this item on September 28, 2022. Ordinance S-41736 authorizing the IGA with ASU was passed by the City Council on May 19, 2015. Ordinance S-43332 authorizing the first amendment to the IGA was passed by the City Council on March 22, 2017.
Location
Approximately four blocks bounded by 4th and 6th streets and Garfield and Fillmore streets.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Community and Economic Development Department.