Title
Authorization to Issue Request for Proposals for the Lease and Redevelopment of the City-Owned Parcel at 300 N. Central Ave.
Description
Request authorization for the City Manager, or his designee, to issue a Request for Proposals (RFP) to select a development team and begin negotiations for the lease and redevelopment of the City-owned transit center parcel known as the Central Station Transit Center (Central Station) at 300 N. Central Ave.
Report
Summary
The Central Station Transit Center consists of approximately 2.6 acres with bus shelters, amenities, and a 4,960-square-foot transit building (collectively, the "Site"). Central Station was built in 1997 and renovated in 2011 using federal funds. In 2008, light rail stations were constructed adjacent to the Site on Central and First avenues. The Site was the subject of an RFP in 2014 that did not result in a disposition. Since cancellation of those negotiations, staff has received significant development interest in the Site for potential mixed use, transit-oriented development, while still serving transit uses.
The intent of this RFP is to seek proposals that complement and enhance the transit system through developing a mixed-use, transit-oriented development. This includes ensuring existing transit service is not negatively impacted and maintaining efficient circulation for all modes of traffic on adjacent and nearby streets. One area of need to be addressed in the RFP is the expansion of the Public Transit facility. This facility will be replaced with a larger commercial space to accommodate administrative functions such as ticket vending and sales, customer service, security, restrooms and storage, all of which are critical services for transit passengers. Additionally, the revenues gained resulting from this RFP will be directed to the City’s Public Transit fund for transit uses per Federal Transit Administration (FTA) guidelines.
The proposal is a collaboration between the City of Phoenix and one or more partners to build transit-oriented development, which is typically dense, walkable, mixed-use development while improving the transit system. The goals of the joint developments include:
- To enhance the transit system in the context of the multimodal transportation network.
- To generate revenue for public transit.
- To build vibrant, mixed use, economically successful transit-oriented communities.
Proposers will be required to:
- Enhance effectiveness of Public Transit operations and ridership.
- Retain the Polk Street alignment and provide a south-to-north connecting drive aisle from Van Buren Street within the site for Transit use.
- Retain bus routes on site.
- Provide pedestrian and passenger oriented amenities.
- Integrate dense, mixed-use, infill project.
- Design distinct and diverse architecture.
- Provide the City with approximately 9,000 square feet (SF) of commercial space (at least 3,000 SF on the ground floor) for transit operations.
- Offer a minimum annual return to the City of five percent of the appraised value in cash lease payments.
- Demonstrate experience successfully completing at least one vertical development of at least seven stories within the past five years.
- Retain and relocate the existing interpretive Transit history sign.
- Comply with Federal Transit Administration regulations.
The RFP will include the following evaluation criteria:
1. Concept to Activate the Site: (0-375 points) This includes continuing all existing transit functionality and routes; create a dense, infill redevelopment project; capitalizing on the unique transit-centric characteristics of the site; ground floor activation along all four sides of Site; promoting walkability with connections to bus and light rail, Civic Space Park, pedestrian links and bicycle facilities; maximizing shared use area of the Polk Street alignment and a south to north driveway from Van Buren; providing transit passenger amenities; and developing an innovative, appropriate, high quality design with distinctive and diverse architecture.
2. Return to the City: (0-325 points) This includes a proposed lease term and cash lease payment with a minimum return of $614,300 annually; economic, fiscal, employment and other tangible public benefits; and any requested City assistance.
3. Proposer's Qualifications and Experience: (0-300 points) This includes the number of years and type of experience successfully developing similar projects and financial capacity to successfully develop and complete the proposed project.
An appraisal of the Site was completed in October 2017 valuing the Site at $12,286,000 and net proceeds from the agreement resulting from this RFP will be directed to the City's transit fund per FTA requirements.
Staff plans to issue the RFP in late spring 2018 and keep it open for at least 60 days. Responsive proposals will be evaluated by a diverse panel including City staff and community representatives. Following negotiations with the recommended proposer, business terms will be presented to the DAEI Subcommittee for review and recommendation, and then to the full City Council for approval.
The RFP will ensure that existing transit is not negatively impacted and that efficient circulation for modes of transportation on adjacent and nearby streets is maintained. The RFP will also address needed expansion of the Public Transit facility, with larger space to accommodate ticket sales, customer service, security, and other needs.
Concurrence/Previous Council Action
This item was heard at the March 29, 2018 Citizens Transportation Commission (CTC) meeting and approval was recommended by a vote of 8-0. The CTC included in its motion use of the specific criteria outlined above.
This item was heard at the April 4, 2018 Downtown, Aviation, Economy and Innovation Subcommittee meeting and approval of the CTC's motion was recommended by a vote of 3-0.
An informational report on this item will be included in the April 18, 2018 Transportation and Infrastructure Subcommittee packet.
Location
300 N. Central Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Managers Deanna Jonovich and Mario Paniagua, and the Community and Economic Development and Public Transit departments.