Title
Authorization to Enter into Development Agreement for Public Parking (Ordinance S-44156)
Description
Request authorization for the City Manager, or his designee, to enter into a development agreement, and other agreements as necessary, (collectively, the Agreements) with Hines Interests, LP, or its City-approved designee (Developer) to purchase structured public parking spaces. This action will have no impact to the General Fund. The $500,000 is available in the Community and Economic Development Department's Capital Improvement Program budget using Downtown Community Reinvestment Funds. Further request authorization for the City Controller to disburse the necessary funds.
Report
Summary
The Developer has proposed to develop the undeveloped pad at Colliers Center with a high-rise, multi-family residential rental project. The pad is located at the southeast corner of the Colliers Center, near the corner of 3rd Street and Jefferson Street. While the Collier Center already has underground structure parking spaces for the residences, the Developer and the City have identified there is a need for additional public parking in the vicinity, and the developer has agreed to build at least 40 additional parking spaces. The Developer will then sell half of those spaces to the City and these approximately 20 spaces will be under total City ownership, which will assist in bringing new tenants into Downtown Phoenix. The proposed key business terms include:
- Developer will enter into a Development Agreement within six months.
- Developer shall commence construction within 36 months of City Council authorization.
- Developer shall have an option to extend the commencement date by no more than six months.
- City shall pay the developer the cost of constructing the City parking spaces, not to exceed $500,000, upon transfer of title.
- City and Developer shall enter into an operating and revenue sharing agreement to manage the spaces through a qualified third-party operator.
Developer will comply with Arizona Revised Statutes title 34 requirements for the construction of this new parking area in addition to other terms and conditions as required by the City. This project will provide additional public parking in Downtown Phoenix, immediately adjacent to office, retail, convention and arena uses, in an area where parking has become constrained.
Contract Term
The total term of the development agreement is four years.
Financial Impact
This action will have no impact to the General Fund. The $500,000 is available in the Community and Economic Development Department's Capital Improvement Program budget using Downtown Community Reinvestment Funds.
Concurrence/Previous Council Action
This item was recommended for approval at the Downtown, Aviation, Economy and Innovation Subcommittee meeting on Dec. 6, 2017 by a vote of 4-0.
Location
Colliers Center, 201 E. Washington St.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Community and Economic Development Department.