Posted Sep 6, 2011, 2:34 AM
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Join Date: Jul 2010
Location: #dtphx
Posts: 175
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Unfortunately I can't link to this because the links on the CoP Public Notice page change every night as meetings cycle off. But below is one of the agenda items for Wednesday morning's meeting of the DT, Aviation, & Economy subcommittee:
Quote:
Downtown, Aviation and Economy Subcommittee, September 7, 2011, Item 6.
CITY COUNCIL REPORT
TO:
David Krietor
Deputy City Manager
FROM:
Paul Blue
Community & Economic Development Director
SUBJECT:
AUTHORIZATION TO ENTER INTO AGREEMENTS WITH CONCORD EASTRIDGE FOR THE TRANSIT ORIENTED DEVELOPMENT OF THE SOUTHEAST CORNER OF ROOSEVELT AND THIRD STREETS IN DOWNTOWN PHOENIX
Staff requests the Downtown, Aviation and Economy Subcommittee recommend City Council authorization to enter into Agreements with Concord Eastridge (Developer) for the transit-oriented development of the southeast corner of Roosevelt and Third streets in downtown Phoenix.
THE ISSUE
In July 2011, the Community and Economic Development Department (CEDD) issued a Request for Proposals (RFP) for the transit-oriented development of a block and a half area bounded by Third, Fourth, McKinley and Roosevelt streets in downtown Phoenix.
The proposal submitted by Concord Eastridge was deemed responsive and includes the private development of two, seven- to eight-story residential towers, a five-story parking structure and common areas/amenities, such as open space and two swimming pools. The project consists of approximately 327 market-rate rental residential units, a 433-stall parking garage and 5,000 square feet of ground-floor commercial space to open by the fall of 2013.
This project represents an approximately $52 million private investment. It will redevelop a vacant “gateway” block in downtown Phoenix, add approximately 600 residents, create about 450 construction-related jobs and generate millions of dollars in new economic activity, both through immediate public infrastructure upgrades and long-term resident spending with local businesses.
OTHER INFORMATION
CEDD intends to take ownership of the Developer’s land and improvements for a period of 25 years from completion of construction, leasing the project back to the Developer via the state Government Property Lease Excise Tax (GPLET) program. The excise tax will be abated the first eight years and the City will begin collecting lease revenues beginning the second year of $10,000 annually, increasing 5 percent per year. These funds would be deposited in the Community Reinvestment Fund to support ongoing strategic redevelopment. At the end of the term, the City will convey the property back to the Developer at no cost to the City.
The Developer will provide the City with construction documents by February 2012 and will commence construction in May 2012 in order to open the project to residents by fall of 2013. This project represents a significant private capital investment in our community. It will provide high-quality living opportunities walking distance to the Roosevelt light rail station as well as ASU and Phoenix Biomedical campuses, in addition to removing blight and generating revenues for the City.
RECOMMENDATION
Staff requests the Downtown, Aviation and Economy Subcommittee recommend City Council authorization to enter into Agreements with Concord Eastridge (Developer) for the transit-oriented development of the southeast corner of Roosevelt and Third streets in downtown Phoenix.
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My question is, what does this mean? I thought Concord Eastridge bought the land. That's how it sounded in their zoning hearing and it's what it sounded like when I was emailing with their zoning attorney and regional VP. So why/how is the City leasing it to them? I'm so confused.
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