Title
Authorization to Conduct Direct Negotiations for Disposition of City-Owned Land and Improvements Located at 1 S. 24th St. (Ordinance S-47329)
Description
Request to authorize the City Manager, or his designee, to identify a buyer and negotiate for the direct sale of the former First National Bank of Arizona building located at 1 S. 24th St. Further request to authorize placement of a 30-year declaration of restrictive covenants on the property prior to any sale and/or make the sale conditioned on a 30-year conservation easement. There is no impact to the General Fund with this action.
Report
Summary
The City's Aviation Department owns Assessor Parcel Number (APN) 121-62-041A, located at 1 S. 24th St. (Site). The Site is approximately 1.55 acres and includes the former First National Bank of Arizona Building (Building), currently vacant. The Building, approximately 5,460 square feet, was originally designed by Kenneth Oberg, built in 1966, and is eligible for historic designation.
On June 20, 2018, City Council authorized the Community and Economic Development Department (CEDD) to issue a Request for Proposals (RFP) for the sale and adaptive reuse of the land and improvements, and on Sept. 17, 2018, the RFP was issued.
On Dec. 16, 2018, a fire incident occurred in the Building resulting in damage to the Building’s interior and roof. This incident occurred before the RFP process could be completed. Key dates and actions that followed, include:
- January 2019 - RFP-CED18-FNB canceled with intent to reissue;
- June 2019 - Fire Damage Investigation and Final Report completed; and
- May 2020 - Building Conditions Assessment and Report completed.
On Oct. 30, 2020, RFP-CED18-FNB was canceled with no intent to reissue due to changes in the Site’s condition as a result of the fire damage. Staff now recommends conducting direct negotiations for the sale of the Site.
With City Council approval, CEDD will advertise the Site for sale at the appraised value of $480,000 and in “as-is” condition. Interested parties will also be notified of the 30-year declaration of restrictive covenants on the property and/or that the sale is subject to a 30-year conservation easement. Following negotiations with the recommended buyer, business terms will be presented to the City Council for approval prior to entering into an agreement.
Financial Impact
There is no financial impact to the General Fund with this action.
Concurrence/Previous Council Action
The Downtown, Aviation, Economy and Innovation Subcommittee recommended issuance of an RFP for the sale and adaptive reuse of the real property and improvements for approval on June 6, 2018, by a vote of 4-0.
The City Council authorized issuance of an RFP for the sale and adaptive reuse of the real property and improvements on June 20, 2018.
Public Outreach
Staff presented to the Central City Village Planning Committee on May 14, 2018 and to the Historic Preservation Commission on May 21, 2018 and Feb. 8, 2021.
Location
1 S. 24th St.
Council District: 8
Department
Responsible Department
This item is submitted by Interim Deputy City Manager John Chan, Deputy City Manager Mario Paniagua, and the Aviation and Community and Economic Development departments.