Title
1305 and 1410 W. Polk Street - Authorization for Sale and Development (Ordinance S-52106) - District 7
Description
Request to authorize the City Manager, or his designee, to separately enter into a development agreement, and other agreements as necessary, (collectively, the "Agreements") with Habitat for Humanity Central Arizona ("Developer") for the sale and development of 1305 and 1410 W. Polk Street for affordable housing projects. Further request to authorize the City Controller to disburse all funds related to this item and City Treasurer to accept funds received as program income.
Report
Summary
The Developer submitted its proposal in response to the Neighborhood Services Department (NSD) Request for Proposals (RFP) for the purchase and development of two vacant residential City-owned lots located in the Oakland Historic District at 1305 and 1410 W. Polk Street. The Developer's proposal aligns with the goals outlined in the Housing Phoenix Plan which addresses the critical need for affordable housing in the City of Phoenix.
The proposed business terms include:
- The residential lot at 1305 W. Polk Street will be developed into a three-bedroom, two-bathroom single-family detached owner-occupied home and maintain permanent affordability through land use restrictions.
- The commercial lot at 1410 W. Polk Street will be rezoned residential and developed into a two-unit owner-occupied single-family duplex and maintain permanent affordability through land use restrictions. NSD will provide up to $150,000 in city assistance from program income received from the U.S. Department of Housing and Urban Development (HUD) funded programs to assist with development and homeownership assistance costs.
- Developer will enter into a Sale and Development Agreement within six months, and each project shall have development benchmarks for construction. Estimated construction completion is approximately 30 months.
- The three residential units that the two projects create will be made available to households with income levels not to exceed 80 percent area median income, as defined annually by HUD.
- Affordability requirements will be secured through a Declaration of Affirmative Land Use Restrictive Covenant.
The development of the two lots will add affordable housing opportunities, generate jobs and economic activity, increase revenue at local businesses, increase tax revenue, and improved quality of life.
Procurement Information
NSD issued an RFP for the purchase and development of 1305 and 1410 W. Polk Street in August 2023. When this solicitation closed in October 2023, it was deemed unsuccessful due to zero proposals being submitted. In September 2024, NSD re-issued an RFP for the two subject lots and when this solicitation closed in December 2024, NSD received one proposal. Upon review, staff deemed the proposal responsive and complete. An Award Recommendation naming Habitat for Humanity Central Arizona was posted in January 2025 and staff initiated negotiations regarding the terms, design and construction of the proposed developments.
Contract Term
The contract term of the Agreements will be three-year contract terms, with two one-year options to extend, which may be exercised by the City Manager, or designee. The Agreements will include other terms and conditions deemed necessary by the City.
Financial Impact
Funding will be provided to the 1410 W. Polk Street proposed development project with the funds originating from HUD. No city financial assistance is being sought for the 1305 W. Polk Street development project. No General Funds are required.
Concurrence/Previous Council Action
On June 16, 2020, Phoenix City Council approved nine policy initiatives listed in the Housing Phoenix Plan. The two projects fall under Initiative number three.
Public Outreach
A virtual community meeting was held on June 29, 2023 with the residents and business owners located in the Oakland Historic District regarding the RFP and to solicit input on the development of these lots.
Location
1305 W. Polk Street and 1410 W. Polk Street
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Managers Alan Stephenson and Gina Montes and the Neighborhood Services and Housing departments.