Title
Phoenix Rising FC, LLC Development Agreement for Public Infrastructure Improvements (Ordinance S-49793)
Description
Request to authorize the City Manager, or his designee, to negotiate and enter into a Development Agreement (DA), and any other agreements as necessary, with Phoenix Rising FC, LLC, or its City approved designee, for the demolition and removal of certain existing improvements, and the installation of public infrastructure improvements at 3801 E. Washington Street. Further request authorization for the City Controller to disburse funds under the terms of the agreement.
Report
Summary
Phoenix Rising FC, LLC (RISING) entered into a ground lease on approximately 10 acres of City-owned land on March 27. The ground lease term is five years including five one-year options to extend the term. The land owned by Phoenix Sky Harbor International Airport was formerly the Greyhound Racing Park. The Greyhound grandstand and other structures were recently demolished by the Aviation Department and the site was left in an unimproved and partially demolished state. Upon entering the lease earlier this year, RISING constructed a temporary soccer stadium and associated facilities including offices, a concession stand, team locker rooms, portable sports book, parking lot and practice facility. RISING performed extensive public improvements, following Title 34, and completed additional excavation and demolition on the site. Some of the public improvements and additional demolition would have needed to be completed in the future as the Airport expands it operational footprint to this site, and will benefit the Airport well beyond the term of the lease. Some of the improvements to make the Aviation-owned site developable include moving public water and sewer lines, removal of over 70 caissons from the previous Greyhound structures, installation of a public sidewalk and street improvements, environmental and site remediation and several other public infrastructure related items.
Through a DA, the City will reimburse RISING up to $1,750,000 for construction of required, necessary and beneficial public improvements. All reimbursable improvements must be approved by the City. All cost must be verifiable and cannot exceed actual costs. Reimbursement shall be paid on an annual basis, in arrears, and reimbursement payments shall not exceed the term of the lease.
Contract Term
The term of the DA is for a maximum of seven years.
Financial Impact
The action will have no impact on the General Fund. The $1,750,000 is available in the Downtown Community Reinvestment Fund and will be programmed as a $250,000 annual expense from FY 2023-24 to FY 2029-30.
Location
3801 W. Washington Street
Council District: 8
Department
Responsible Department
This item is submitted by Interim Deputy City Manager John Chan and the Community and Economic Development Department.