Title
Amend Development Agreement with PV Land SPE, LLC (Ordinance S-51125)
Description
Request to authorize the City Manager, or his designee, to amend Contract 154095 (Agreement) with PV Land SPE, LLC, or its City-approved designee (Developer), to allow for reimbursement of Developer built public infrastructure and amenities utilizing the Transportation 2050 (T2050) and Convention Center share of the City’s Transaction Privilege Tax (TPT) for eligible purposes. Furthermore, staff requests authorization to amend the Agreement to further define eligible public infrastructure.
Report
Summary
Developer entered into a Development Agreement (DA) with the City in 2021 to facilitate the demolition and redevelopment of the former Paradise Valley Mall into a mixed-use development (Project). The DA allowed for reimbursement by the City of public improvements constructed by the Developer utilizing the eligible share of Project-generated TPT.
Staff is recommending allowing the following TPT generated on-site to be reimbursable under the DA, in addition to the eligible General Fund share of TPT:
- T2050 TPT is proposed to be utilized, only to reimburse costs of constructing approved public transit and street improvements.
- Convention Center TPT is proposed to be utilized to reimburse costs of approved public infrastructure.
The amendment will also allow for reimbursement of off-site public infrastructure constructed adjacent to the Site within Cactus Road or Paradise Village Parkway. All other terms and conditions of the Agreements will remain in full force and effect.
Financial Impact
Project-generated TPT is only available for actual public infrastructure and amenities completed by the Developer and accepted by the City for a 25-year term.
Concurrence/Previous Council Action
City Council approved PV Land SPE, LLC DA (Ordinance S-47323) on Feb. 17, 2021.
Location
4500 - 4610 E. Cactus Road
Council District: 3
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Community and Economic Development Department.