Title
Downtown Phoenix, Inc. - Authorization to Enter into Membership Agreement (Ordinance S-51805) - Districts 4, 7 & 8
Description
Request to authorize the City Manager, or his designee, to enter into a three-year membership agreement with Downtown Phoenix, Inc. The fee for the three-year agreement is $330,000. Further request to authorize the City Controller to disburse all funds related to this item. There is no impact to the General Fund.
Report
Summary
Downtown Phoenix, Inc. (DPI) is an established nonprofit entity designed specifically to enhance the economic and cultural vitality of the broader downtown Phoenix community. DPI coordinates activities between numerous affiliate organizations including the Phoenix Community Alliance and the Downtown Phoenix Community Development Corporation, and maintains the Downtown Phoenix Enhanced Municipal Services Advisory Board. Since 2013, the City has utilized DPI to serve as a liaison to downtown neighborhood and business organizations, expand and enhance special events, facilitate the creation of net new sales tax revenues, inspire civic pride, and provide social and family entertainment opportunities to the public. In addition to these benefits, the City receives six positions on the DPI Board of Directors including the Mayor, City Manager and four additional positions nominated by the Mayor or City Manager, as part of an active membership agreement.
The City's current membership expires on June 30, 2025. The new three-year membership agreement will begin July 1, 2025 and end on June 30, 2028. The agreement fee is for $110,000 annually, not to exceed $330,000 for the term of the agreement. The City's investment is leveraged by private sector dollars and DPI has obtained outside grants that continue to yield results for the City that would otherwise not be obtainable. The cost of the annual membership has only increased one time since 2013, from $100,000 to $110,000.
Contract Term
The term of the new agreement will be from July 1, 2025 through June 30, 2028, with no extension options.
Financial Impact
There is no impact to the General Fund. Funding for the three-year term is available in the Downtown Community Reinvestment Fund.
Concurrence/Previous Council Action
This item was recommended for approval by the Economic Development and Housing Subcommittee at its March 26, 2025 meeting.
Location
Council Districts: 4, 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Community and Economic Development Department.