Title
Amend Ordinance Authorizing Mayo Clinic Arizona Development Agreement for Installation for Public Infrastructure Improvements (Ordinance S-50275)
Description
Request to authorize the City Manager, or his designee, to amend Ordinance S-48386 to extend Transaction Privilege Tax (TPT) reimbursement period in contemplated Development Agreement with Mayo Clinic Arizona (Mayo) or its affiliates from 35 to 40 years.
Report
Summary
At its March 2, 2022, meeting, City Council approved the terms of a Development Agreement (DA) with Mayo for the construction of Discovery Oasis, including reimbursement of public infrastructure approved by the City. Discovery Oasis is planned to be a 228-acre bioscience park that will bring a significant number of high-wage jobs and capital investment in the bioscience and health care arena. The funds for reimbursement will come from the eligible General Fund share of the TPT created by the project, not to exceed $40 million.
As Mayo has conducted further research and analysis of the public infrastructure needed for development of the property immediately adjacent to its existing north Phoenix campus, it has been determined that extensive flood mitigation infrastructure is required to maximize development. To facilitate the installation of this flood control infrastructure, staff proposes extending the DA reimbursement period from 35 years to 40 years to allow Mayo more time to recover the funds to be expended up-front on the public infrastructure, which will include the flood mitigation. All other terms and conditions of the DA will remain in place.
Contract Term
The term of the Development Agreement will increase from 35 years to 40 years after the City’s acceptance of the public infrastructure improvements and drainage solutions.
Financial Impact
There is no additional financial impact to the General Fund. The maximum reimbursement from the eligible General Fund share of TPT revenue will remain at $40 million.
Concurrence/Previous Council Action
The terms of the initial Development Agreement were approved at the March 2, 2022, City Council by a vote of 9-0.
Location
Generally located on approximately 228 acres south of Loop 101; east of 56th St.; west of 64th St., and as described in the Arizona State Land Department Auction No. 53-122049
Council District: 2
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Community and Economic Development Department.