Title
Development Agreement with CapRock Partners for Installation of Public Infrastructure Improvements (Ordinance S-47629)
Description
Request to authorize the City Manager, or his designee, to negotiate and enter into a development agreement, and any other agreements as necessary, with CapRock Partners, LLC, dba CRP LDF 55th Avenue LLC or its City-approved designee, and Southern Cross, LLC for the installation of public infrastructure improvements located along 55th Avenue from Roosevelt to Van Buren streets. Further request to authorize future City acceptance and maintenance of the public infrastructure along this alignment.
Report
Summary
CapRock Partners, LLC, dba CRP LDF 55th Avenue LLC or its City-approved designee (Developer) has negotiated a long-term lease with the Southern Cross, LLC (Owner) of an approximately 184-acre site generally bounded by Roosevelt Street to the north, Van Buren Street to the south, Loop 202 to the west, and the 53rd Avenue alignment to the east (Site). Developer plans to develop approximately 3.3 million square feet of industrial buildings (Project). This employment-generating development could add several thousand new jobs to the Site over the next 10 years. The Project is currently under plan review in the City's Planning and Development Department with site plan approval anticipated towards the end of May 2021.
To accommodate for these new jobs and the additional traffic to the area resulting from the creation of the Project, the Street Transportation Department has required the developer to construct 55th Avenue from Van Buren Street to Roosevelt Street. The new 55th Avenue alignment will provide critical access to attract and retain new development and is listed as a future street on the City's Street Classification Map.
In order to develop 55th Avenue, an irrigation channel controlled by the U.S. Bureau of Reclamation will need to be relocated to an area outside of the future right of way (ROW). The relocation of an irrigation channel controlled by the federal government may take an excessive amount of time and is not within the City's control. In order to construct the new industrial development in a timely fashion, through a development agreement (DA), the Developer will construct the required infrastructure improvements as private improvements, but will meet all the City's public infrastructure standards. Upon completion of the infrastructure construction, relocation of the irrigation channel outside of the ROW, the City's approval of the infrastructure improvements, and the dedication of the infrastructure improvements to the City, the required infrastructure improvements may be accepted by the City as public infrastructure improvements in the future. Terms of the DA are as follows:
- Developer will construct a new street alignment along 55th Avenue, from Van Buren Street to Roosevelt Street, to the City's reasonable satisfaction, at the Developer's sole, up-front cost and expense;
- Although 55th Avenue will initially be a private street, Developer agrees to construct the street in accordance with the City's public street standards including water and wastewater infrastructure;
- City staff will review and inspect all infrastructure improvements with the understanding that 55th Avenue, including water and sewer mains along the alignment, may ultimately become public infrastructure;
- Developer shall work with the federal government, Salt River Project (SRP) and the City (collectively, the "Parties") to relocate the irrigation channel along this future 55th Avenue alignment to an area that is outside ROW and/or is acceptable to the Parties;
- Upon relocation of the irrigation channel to its approved location and the final Plat for the Site is accepted and approved by the City, and all infrastructure improvements relating to 55th Avenue are constructed and approved by the City, the Developer may request in writing that the City accept dedication of 55th Avenue as a public street;
- Transfer of the new 55th Avenue alignment to the City shall be completed solely by the Developer;
- Should the City accept dedication of the new 55th Avenue alignment after it is completed, the City will be responsible for all future repairs and maintenance according to City Standards, as with other public streets; and
- The DA, and any other agreements as necessary, will include other terms and conditions as deemed necessary by the City.
This Project is an important economic development opportunity for Phoenix and will create several thousand new jobs over time for the community, yielding significant financial and public benefits to the City of Phoenix.
Contract Term
If approved, all public infrastructure improvements, and dedication of such improvements to the City, must be completed within 10 years.
Financial Impact
There is no immediate financial impact to the City. If the public infrastructure improvements are transferred to the City, they will be maintained by the City according to City standards.
Location
Southeast of Interstate 10 and the Loop 202 South Mountain Freeway.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Managers Ginger Spencer and Mario Paniagua, and the Community and Economic Development and Street Transportation departments.