Title
Amend Redevelopment and Purchase Agreement with 3DC Partners, LLC (Ordinance S-48507)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 149707 with 3DC Partners, LLC to extend the Construction Commencement Date for 11 additional months, to April 30, 2023. There is no expense impact as a result of this action.
Report
Summary
In April 2019, a Redevelopment and Purchase Agreement (RPA), City Agreement 149707, was entered into with the 3DC Partners, LLC (Developer) for the sale and development of approximately 26,000 square feet of City-owned land located on the southeast corner of Central Avenue and Adams Street at 30 N. 1st St. (Site) as authorized by Ordinance S-44791. The RPA was amended on June 3, 2020 by the First Amendment to the RPA, Agreement 149707-1 (First Amendment), which extended the Commence Construction Date to June 3, 2021, updated the project description and modified the parking requirements. The RPA was amended again on June 3, 2021 by the Second Amendment to the RPA, Agreement 149707-002 (Second Amendment), which extended the Commence Construction Date to June 3, 2022.
The Developer intends to construct a mixed-use tower consisting of a boutique hotel with approximately 220 hotel rooms including 20 hospitality suites, approximately 50,000 gross-square-feet of commercial office space and ground floor retail. In addition, Developer will make improvements to Adams Street consistent with the City's Adams Street Activation Study. Collectively these improvements are referred to as the "Project."
The RPA included typical performance benchmarks such as commencement of construction and completion of construction. The Developer is nearing completion of the design and permitting of the Project and has spent significant funds toward the redevelopment of the site. However, the Developer has not yet commenced construction on the site. Community and Economic Development and the Phoenix Convention Center have requested use of the Project site in February of 2023 to host events related to Super Bowl LVII. Further, this site, along Adams Street, will be highly visible during the weeks of the event, and the City's Major Events Team is working diligently to ensure the area presents Phoenix well to our visitors and viewers. A construction site in this immediate vicinity would be challenging during the weeks long events here in Downtown. The Developer has agreed to postpone construction to accommodate this request and allow the City to host events on the site.
If approved, this amendment will modify Section 401.3 of the RPA to change the Commence Construction Date to April 30, 2023. All other terms and conditions of the RPA shall remain in full force and effect.
Financial Impact
There is no expense impact as a result of this action.
Concurrence/Previous City Council Action
The City Council approved the Development Agreement reflected in City Contract 149707 (Ordinance S-44791) on June 20, 2018 and an amendment to City Contract 149707 (Ordinance S-47656) on June 2, 2021.
Location
30 N. 1st St.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Managers Ginger Spencer and Inger Erickson, and the Community and Economic Development and Phoenix Convention Center departments.