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Title:
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Amend Ordinance - Redevelopment and Purchase Agreement (City Contract No. 147086) with High Street Fillmore, LLC. and High Street Fillmore Phase 2, LLC. (Ordinance S-49222)
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Title
Amend Ordinance - Redevelopment and Purchase Agreement (City Contract No. 147086) with High Street Fillmore, LLC. and High Street Fillmore Phase 2, LLC. (Ordinance S-49222)
Description
Request to authorize the City Manager, or his designee, to amend the Redevelopment and Purchase Agreement (RPA), City Contract 147086 (Agreement) with High Street Fillmore, LLC, and High Street Fillmore Phase 2, LLC, (Developer) to modify performance benchmarks and project descriptions as needed to allow for development of city-owned parcels located between 4th and 6th Avenues, on the south side of Fillmore Street in downtown Phoenix. There is no expense impact as a result of this action.
Report
Summary
In November 2015, the Community and Economic Development Department issued a Request for Proposals (RFP) for the disposition and redevelopment of City-owned parcels located between 4th and 6th Avenues, on the south side of Fillmore Street (collectively "Fillmore Properties" or "Site") in downtown Phoenix. On July 6, 2017, the City Council authorized the City Manager to enter into the Agreement with the successful proposer for the sale and redevelopment of the Site through Ordinance S-43802 (Ordinance).
The Developer chose to develop the site in several phases: Phases 1 and 2, on the east and west side of 5th Avenue, north of Taylor Street, with approximately 659 market-rate units in a seven-story podium apartment building with ground-floor retail; Lot 4, on the west side of 5th Avenue and south of Taylor Street, with a use to be determined at a later date; and Lot 5 ("Condo Site") with "for sale" residential uses. The Developer completed construction of Phase 1, on the east side of 5th Avenue, and is working to commence Phase 2 construction, located on the west side of 5th Avenue, in the summer 2023. Development plans for the Condo Site, have been submitted to the Planning and Development Department and are currently under review. The Developer has also completed construction of Taylor Street, per the City's specifications for the Taylor Street Paseo concept, and has dedicated the street as public right-of-way.
The Developer intends to assign development rights to Lots 4 and 5 to Cardon Development Group (Cardon) which will construct six three-store townhomes on the west portion of the Condo Site (Lot 5 West), and a seven-story for-sale multifamily residential building on the east portion of the Condo Site (Lot 5 East). Cardon is the successor in interest to Metrowest Development, a partner in the RFP proposal. Cardon will work with the community and City staff to develop a development plan for Lot 4 which will be brought back before City Council at a later date. The Developer is nearing completion of the design and permitting of the Condo Site and has spent significant funds toward the redevelopment of the Site and on public right-of-way improvements. As plans are solidified for the future phases of the project, Developer has requested to amend the Agreement to better accommodate development of the Condo Site and Lot 4.
If approved, this amendment will:
Assign the Condo Site to Cardon Development Group, LLC.
Modify the project description for the Condo Site.
Modify Section 401.3 of the RPA to modify Condo Site construction commencement date.
Modify Section 401.1 of the RPA to change the Condo Site and Future Phase completion dates.
Amend Section 409.1 of the RPA to define Condo Site Completion.
Financial Impact
There is no expense impact as a result of this action.
Concurrence/Previous City Council Action
The City Council approved Ordinance S-43802 on July 6, 2017.
Location
Several properties located between 4th and 6th Avenues, south of Fillmore Street in downtown Phoenix. Parcel Nos.: 111-41-183, 111-41-184, 111-41-185, 111-41-186 and 111-41-187.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Community and Economic Development Department.