Title
Amend Ordinance S-43737 to Modify Intergovernmental Agreement Terms with Arizona State University for Arizona Biomedical Corridor Infrastructure Improvements (Ordinance S-44005)
Description
Request to amend Ordinance S-43737 (Ordinance) and to authorize the City Manager, or his designee, to modify or execute any agreements or other documents necessary with the Arizona Board of Regents (ABOR) for and on behalf of the Arizona State University (ASU) to increase the scope of infrastructure improvements eligible for reimbursement on the Arizona Biomedical Corridor (ABC) in north Phoenix; and to authorize the City Controller to disburse funds.
Report
Summary
On June 7, 2017, the City Council approved the Ordinance to authorize the City to enter into an Intergovernmental Agreement with ASU to facilitate ABC infrastructure improvements to assist with development of the first phase of ASU’s Health Solutions Innovation Center (HSIC) project and lay the groundwork for ongoing development in the ABC. The HSIC is planned to be a $75 million, 150,000-square-foot building that will serve as a catalyst for future public and private development in the Arizona Biomedical Corridor.
ASU is currently in the preliminary design and engineering stage of the HSIC project and plans to break ground in 2018. Through the preliminary design processes ASU has identified additional infrastructure improvements related to an additional 1.35 million square feet of health and bioscience facilities representing a total additional investment of approximately $325 million over the next 15 years. This amendment is to request that additional infrastructure is authorized to be included in the reimbursement schedule as the campus is built out. As detailed in the original Council action, these reimbursements would only occur after the improvements are constructed and campus facilities are developed.
The specific change is to increase the total not-to-exceed reimbursement amount from $1.3 million to $8.8 million; for various projects including a public pedestrian/bicycle bridge over the wash corridor, and public street and sidewalk improvements.
All other terms of the Ordinance S-43737 will remain in full force and effect.
Financial Impact
As amended, up to $8.8 million in public infrastructure improvements will be reimbursed to ASU from the Strategic Economic Development Fund, payed in installments based on funding availability. Based on eligibility of expenditures and funding availability, Highway User Revenue Funds, Water Revenues, Wastewater Revenues, and/or Downtown Community Reinvestment Funds may be used as alternate funding sources. Reimbursements are anticipated to begin in FY 2019/2020. Specific funding sources will be identified prior to executing development agreements. Development agreements will be reviewed for funding availability by the Budget & Research Department and funding will be budgeted in the Community and Economic Development Capital Improvement Program.
Concurrence/Previous Council Action
This item was recommended for approval by the Downtown, Aviation, Economy and Innovation Subcommittee on Oct. 4, 2017. City Council approved the original action through Ordinance S-43737 on June 28, 2017.
Location
The area extends from State Route 101 to the Central Arizona Project Canal, between 56th Street and 64th Street, along Mayo Boulevard.
Council District: 2
Department
Responsible Department
This item is submitted by Deputy City Managers Deanna Jonovich, Mario Paniagua and Karen Peters, and the Community and Economic Development, Street Transportation and Water Services departments.