Title
7th Avenue and Washington Street - Authorization to Issue Disposition and Redevelopment Solicitation - District 7
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 7th Avenue and Washington Street.
Report
Summary
The City owns 4.63 acres of land located at the northwest, northeast and southwest corners of 7th Avenue and Washington Street (Site). The northeast corner, one city block of 1.76 acres, is currently occupied by the Phoenix Police Department Headquarters Building, which opened in 1974. This block is also known as Block 84 of the Original Townsite of Phoenix (Block 84). The northwest corner is also a full city block of 1.74 acres and is occupied by an employee parking lot supporting the police headquarters building. It is also known as Block 12 of the Neahr’s Subdivision (Block 12). The City owns a portion of the southwest corner, 1.13 acres of vacant land. This block is also known as Block 13 of the Neahr’s Subdivision (Block 13).
The Phoenix Police Department is scheduled to vacate Blocks 84 and 12 in 2026 when operations relocates to the 100 West Washington Building, thereby making these properties available for disposition and redevelopment. The City-owned portions of Block 13 were acquired in 2010 and 2013 to support Transit-Oriented Development and possible routing of track along the future Capitol Mall/I-10 West Valley Metro Light Rail Extension. In 2021, City Council amended the Locally Preferred Alternative routing for this extension, moving the westbound track onto Washington Street. This action has made the City-owned portion of Block 13 available for disposition and redevelopment.
In anticipation of issuing an RFP, Community and Economic Development Department (CEDD) staff pursued adequate height and density entitlements for the Site to allow proposals to meet market demand and compliment the future Valley Metro Light Rail Station adjacent to the Site. Block 84 is zoned Downtown Code, Business Core Character Area and has a maximum allowable height of 600 feet and maximum allowable density of 218 dwelling units per acre (du/ac) and did not require any zoning modifications. Blocks 12 and 13, while also being zoned Downtown Code - Business Core Character Area, had maximum allowable heights of only 30 feet and density of 14.5 du/ac. In June 2024, staff initiated a text amendment to raise the maximum allowable height on Blocks 12 and 13 to 250 feet and increase the maximum allowable density to 218 du/ac. A companion general plan amendment to change the Transit Oriented Development (TOD) Policy Plan’s designation of the future Washington Street and Jefferson Street stations at 7th Avenue from ‘Medium Urban Center’ to ‘Downtown Core’ was also requested by Planning and Development Department staff. The text amendment and general plan amendment were approved at the March 5, 2025 Formal City Council Meeting.
With approval, CEDD will issue a solicitation seeking an urban, mixed-use development. The RFP will seek competitive proposals to bring appropriately dense development to the Site, consistent with the Downtown Code Form Based Zoning Ordinance. The Site's zoning provides for reduced setbacks and requirements for active uses facing the street. The Site will also be located directly adjacent to a future Metro Light Rail station and is walking distance to major public sector employers and the Downtown Core. To capitalize on the Site’s location, staff will be seeking proposals that offer mixed-income housing, retail space and distinctive public art, noting the Site’s transition between the Capitol Mall and Downtown Phoenix.
Staff has met with property owners in the surrounding area, and will include the adjacent government agencies in informational meetings in the coming weeks.
Prior to issuance of the RFP, an appraisal of the Site will be performed. The appraisal will establish the minimum purchase price for the Site. In addition to offering at least the minimum purchase price, proposers must have successfully completed at least one mixed-use project within the last seven years. The RFP will allow proposers to submit a response to one or multiple packages. The requirements of each package are further described below:
Package 1: Block 84
Proposals should include an urban, mixed-use project.
Package 2: Block 12
Proposals should include a mixed-use project with at least 30,000 square feet of commercial retail space as well as an enhanced pedestrian connection along the 8th Avenue public right of way to connect to the future Metro Light Rail Station on Washington Street.
Package 3: Block 13
Proposals should include a mixed-use project with at least 50 percent of residential units deed restricted as affordable housing to households earning no more than 60 percent of the Area Median Income.
The RFP will include standard terms, conditions and other necessary requirements. Proposals for any single package cannot be contingent on winning any other package(s). Proposals for each package will be evaluated according to the following evaluation criteria (1,000 possible points):
- Concept to Redevelop the Site (0-375 points)
- Return to the City (0-325 points)
- Proposer's Qualifications and Experience (0-300 points)
The Concept to Redevelop the Site will also include a review of the proposed architecture for the developments, which shall be scored as part of the points given to any project.
Staff anticipates the RFP will be issued in late 2025 and be open for at least 90 days. Responsive proposals will be evaluated by a panel that includes City staff and community representatives. Following negotiations with a recommended proposer, business terms will be brought to Subcommittee for review and recommendation, and then to the full City Council for consideration.
Financial Impact
There is no impact to the General Fund as a result of this action.
Public Outreach
Information regarding the opportunity was presented to the following neighborhood groups:
- Downtown Voices Coalition - January 11, 2025
- Central City Village Planning Committee - January 13, 2025
- Madison Pioneers Coalition - January 14, 2025
Location
The Site includes seven individual parcels (APN 112-04-110A, 112-05-032B, -033A, -035A, -036A, -037A and 112-20-038B) located at 7th Avenue and Washington Street.
Council District: 7
Previous Council Action
This item was recommended for approval by the Economic Development and Housing Subcommittee at the March 26, 2025 meeting by a vote of 4-0.
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Community and Economic Development Department.