Title
Maricopa County Community Colleges District - Phoenix Forge Expansion (Ordinance S-52025) - District 7
Description
Request to authorize the City Manager, or his designee, to enter into an intergovernmental agreement, and other agreements as necessary, with the Maricopa County Community Colleges District (MCCCD), on behalf of Gateway Community College (Gateway), to support the expansion of the Phoenix Forge, an entrepreneur and innovation facility located at 535 W. Van Buren Street in Downtown Phoenix. Further request to authorize the City Controller to disburse funds under the terms of the agreement.
Report
Summary
The Phoenix Forge, located at 535 W. Van Buren Street in Downtown Phoenix, serves as a learning environment offering students a location to learn the practical application of coursework while providing the entrepreneur, hobbyist, inventor, and small business community with a place to access the tools and equipment needed for idea fabrication and product development. Phase one of the facility opened in 2021. Since opening, the 17,000 square foot space serves all ten MCCCD colleges, members of the public, and Arizona State University, and has grown to almost 2,000 members.
Phoenix Forge is part of a nationwide effort to create meaningful and collaborative relationships between Science, Technology, Engineering, Arts, and Math (STEAM). It serves as a cross-disciplinary learning lab for MCCCD students and is also available to the public for a nominal membership fee. The Phoenix Forge offers an academic model of credit and non-credit courses and short, one-time workshops. This model creates a rich learning environment that supports student success by encouraging critical-thinking, creativity and innovation.
MCCCD is preparing to begin a 4,000 square foot expansion of the Phoenix Forge to include:
- Dedicated Glassblowing Facility
- Advanced Manufacturing Equipment including CNC Machining and Turning Centers for Cutting Metals and Plastics
- Sanding Room
- Finishing Booths
- Rental Work Bays
Under the terms of the agreement, the City will contribute $250,000 towards the physical and programmatic startup costs of the expanded facility, including construction of tenant improvements, furniture, fixtures and equipment. The total cost for renovation of the space is estimated at more than $3 million. A third-party economic impact analysis indicated the Phoenix Forge will generate approximately $36 million in economic output over a 10-year period of time including $1.4 million in tax revenue. The expansion would generate approximately $400,000 in the tax revenue for Phoenix and the other tax jurisdictions.
Since opening, the Phoenix Convention Center Department (PCCD) has provided 100 parking spaces at the City-owned Adams Street Garage located at 310 W. Adams Street. To support the expansion of the facility, the City will provide an additional five-year term to the existing parking agreement that expires in 2026. In lieu of parking revenue, an annual parking maintenance fee of $2,000 is collected each year of the five-year term to assist in maintaining the garage. The Community and Economic Development Department (CEDD) pays this fee on behalf of MCCCD.
Financial Impact
There is no impact to the General Fund. CEDD will be charged $2,000 annually by PCCD for the parking maintenance fee, not to exceed $10,000 over the life of the five-year term. Funding is available in the Downtown Community Reinvestment Fund.
Previous Council Action
The item was recommended for approval by the Economic Development and Housing Subcommittee at the May 28, 2025 meeting.
Location
535 W. Van Buren Street.
Council District: 7
Department
Responsible Department
This item is recommended by Deputy City Manager John Chan, the Community and Economic Development and Phoenix Convention Center departments.