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Title:
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Authorization to Issue Request for Proposals for Disposition and Redevelopment of City-Owned Garage at 40 N. 2nd St.
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Title
Authorization to Issue Request for Proposals for Disposition and Redevelopment of City-Owned Garage at 40 N. 2nd St.
Description
Request to authorize the City Manager, or his designee, to issue a Request for Proposals (RFP) for the disposition and redevelopment of City-owned property located at 40 N. 2nd St. for an urban, mixed-use development project, and authorization to begin negotiations with the recommended proposer.
Report
Summary
The City owns the Regency Parking Garage located at 40 N. 2nd St. (Site), which is managed by the Phoenix Convention Center Department. The parking garage was built in 1972 and contains a total of 506 parking spaces, 22,753 square feet (SF) of leasable ground floor commercial space and 40,500 SF of rooftop space. A total of 8,313 SF of commercial space is currently leased by two separate tenants. One lease is on a month-to-month agreement and the other expires Dec. 31, 2020. The Site is also encumbered by four parking leases that commit a total of 363 spaces and expire between 2018 and 2022. The four parking agreements include the Hyatt Regency Hotel (237 spaces), Three E One North Investment Company (97 spaces), the Phoenix Symphony (24 spaces) and Enterprise Leasing (5 spaces).
Both the Phoenix Convention Center and Community and Economic Development departments have been contacted by several private sector parties interested in developing the Site. Staff recommends disposition of the Site as it is not necessary for Convention Center operations and can be redeveloped into a mixed-use project capitalizing on its prominent downtown location.
With approval, the Community and Economic Development Department will issue an RFP seeking offers for redevelopment of the Site. Proposers will be required to demonstrate experience successfully completing at least one vertical mixed-use development of at least seven stories within the last five years, and to provide detailed information including investment and construction costs, operating pro-forma, financing details, project schedules, and a description of public parking availability in the project. Proposers will be encouraged to incorporate community input into their proposals. The RFP will seek a proposal that:
The RFP will seek a proposal that:
Is an urban, mixed-use, infill project.
Incorporates public parking.
Includes employment generating uses.
Capitalizes on the Site's prominent downtown location and proximity to the Phoenix Convention Center.
Implements the recommendations outlined in the Adams Street Activation Study approved by the City Council.
Is consistent with the goals outlined in the Downtown Strategic Plan and Blueprint for the Future.
The Site has an appraised value of $11,450,000, which will be used to set the minimum purchase price. The return to the City may also include other considerations that provide public benefit. Proposals that include a rental residential use should include a minimum of 10 percent of the units, which must be a proportional mix of unit types, for workforce housing.
The RFP will include standard terms and conditions and other necessary requirements, and will be evaluated according to the following evaluation criteria (1,000 possible points):
Concept to Redevelop the Site and Provide Public Parking (0-375 points).
Return to the City (0-350 points).
Proposer's Qualifications and Experience (0-275 points).
Staff anticipates the RFP will be issued in Spring 2019 and be open at least 60 days. Responsive proposals will be evaluated by a panel that incudes City staff and community representatives. Following negotiations with the recommended proposer, business terms will be brought to the Planning and Economic Development Subcommittee for review and recommendation, and then to the full City Council for approval.
Financial Impact
There is no impact to the General Fund as a result of this action.
Public Outreach
Staff presented this item to the Downtown Voices Coalition on Feb. 9, 2019 and the Downtown Neighborhood Alliance on March 12, 2019.
Location
40 N. 2nd St.
Council District: 7
Concurrence/Previous Council Action
This item was recommended for approval at the Planning and Economic Development Subcommittee meeting on March 13, 2019 by a vote of 4-0.
Department
Responsible Department
This item is submitted by Assistant City Managers Milton Dohoney Jr. and Deanna Jonovich, and the Phoenix Convention Center and Community and Economic Development departments.