Title
Authorization to Enter Into an Intergovernmental Agreement for Arizona Biomedical Corridor Infrastructure Improvements and Arizona State University Health Solutions Innovation Center (Ordinance S-43737)
Description
Request to authorize the City Manager, or his designee, to enter into an Intergovernmental Agreement (IGA) and execute any agreements or other documents necessary with the Arizona Board of Regents (ABOR) for and on behalf of Arizona State University (ASU) for development of the Health Solutions Innovation Center and City’s participation in water, sewer and street infrastructure improvements. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
Authorization of this IGA will facilitate not only the current development of the ASU Health Solutions Innovation Center within the Arizona Biomedical Corridor, but also the continued growth and investment of the private sector with preparing for additional strategic infrastructure for the entire Corridor. This request is specifically for authorization to reimburse ASU in an amount of approximately $1.3 million, funded by the Strategic Economic Development Fund and construction tax revenues generated by the project, for public infrastructure including water, sewer, streets and other infrastructure.
The Arizona Biomedical Corridor (ABC) is an approximately 600-acre area in north Phoenix, extending from State Route 101 to the Central Arizona Project Canal, between State Route 51 and 64th Street. A majority of the land within this area is controlled by the Arizona State Land Department (ASLD), as part of the State Land Trust. The prime anchor within the corridor is Mayo Clinic Arizona with its 200-plus-acre hospital campus. The City, ASU and Mayo Clinic Arizona (Mayo) have been focused on investment in this area for many years.
As a result of their partnership, ASU plans to construct the $75 million Health Solutions Innovation Center (HSIC) consisting of a 150,000-square-foot building. To support this development, approximately $1.3 million of public infrastructure is required. Staff recommends that the City enter into an IGA with ASU to support the project by reimbursing approximately $1.3 million of infrastructure, including water, sewer, street and public telecommunication conduits. ASU will build the improvements and the City will reimburse ASU upon completion. ASU intends to begin HSIC facility construction in 2018, with all work to be completed in fiscal year 2019-20.
Over the next 10 - 15 years, ASU intends to build an additional 1.35 million square feet of health and bioscience facilities representing a total additional investment of $325 million. Staff will return to City Council in the fall of 2017 to discuss additional infrastructure required to support the 1.35 million square feet of development, at an estimated cost of up to $8 million.
Financial Impact
A total of approximately $1.3 million of public infrastructure improvements will be reimbursed to ASU from General Fund revenue created by construction materials sales tax generated by the project and from the Strategic Economic Development Fund.
Concurrence/Previous Council Action
This item was recommended for approval by the Downtown, Aviation, Economy and Innovation Subcommittee on June 7, 2017, by a vote of 4-0.
Location
The area extends from State Route 101 to the Central Arizona Project Canal, between 56th Street and 64th Street, along Mayo Boulevard. See attached general area overview map.
Department
Responsible Department
This item is submitted by Deputy City Managers Paul Blue, Mario Paniagua and Karen Peters; and the Community and Economic Development, Street Transportation and Water Services departments.