Title
First and McKinley Streets Parcels Lease and Redevelopment - Authorization to Issue Solicitation
Description
Request City Council to authorize the City Manager, or his designee, to issue a Request for Proposals (RFP) for the lease and redevelopment of City-owned property at First and McKinley streets and to begin negotiations with the recommended proposer.
Report
Summary
The City owns parcels located in the Downtown Phoenix Redevelopment Area, comprising approximately 65,300 square feet, or 1.49 acres, at the southwest and southeast corners of First and McKinley streets (Site). The Site is zoned West Evans Churchill within the Downtown Code. Currently, the western portion of the Site is vacant and the eastern portion is leased to Arizona State University for parking.
With approval, staff will issue an RFP seeking offers for a compatible, infill, mixed-use, dense, urban high-rise development of at least ten stories, with residential use and true ground floor activation on the Site. Proposals must allocate a minimum of ten percent of the total residential units as affordable housing and a minimum of ten percent of the total residential units to workforce housing. Proposals that include parking must offer creative and unobtrusive solutions. The RFP will encourage design considerations and programmatic elements that support and enhance the arts community along Roosevelt Row and require a project for the entire Site.
An appraisal of the Site is currently underway and will be completed prior to the RFP issuance. Each proposer must provide a return to the City equal to or greater than the appraised value and demonstrate successful completion of at least one mixed-use development within the last seven years.
The RFP will include standard terms and conditions and other necessary requirements, and will include the following evaluation criteria:
- Concept to Activate the Site (0-375 points).
- Return to the City (0-325 points).
- Proposer's Qualifications and Experience (0-300 points).
If approved, the RFP will be issued later this year and will be open for at least 60 days. Responsive proposals will be evaluated by a panel that includes City staff and community representatives. Following negotiations with the recommended proposer, business terms will be presented to the Economic Development and Equity Subcommittee for review and recommendation, then to the full City Council for approval.
Financial Impact
There is no impact to the General Fund as a result of this action.
Public Outreach
Staff presented to the Downtown Voices Coalition and Roosevelt Row Merchant Association in Dec. 2022; to the Central City Village Planning Committee, Roosevelt Action Association, and Evans Churchill Neighborhood Association Board in Jan. 2023; and to the Evans Churchill Neighborhood Association in March 2023.
Location
The Site is located at the southwest and southeast corners of First and McKinley streets and includes nine parcels (Assessor Parcel Numbers 111-43-007A, 111-43-006A, 111-43-005A, 111-43-060, 111-43-059, 111-43-058, 111-43-063, 111-43-062, 111-43-061).
Council District: 7
Previous Council Action
The item was recommended for approval by the Economic Development and Equity Subcommittee at the March 22, 2023 meeting by a vote of 4-0.
Department
Responsible Department
This item is submitted by Interim Deputy City Manager John Chan and the Community and Economic Development Department.