Workforce and Economic Development Subcommittee Agenda Meeting Location: City Council Chambers 200 W. Jefferson St. Phoenix, Arizona 85003 phoenix.gov 10:00 AM Wednesday, May 26, 2021 OPTIONS TO ACCESS THIS MEETING Request to speak at a meeting: - Register online by visiting the City Council Meetings page on phoenix.gov at least 1 hour prior to the start of this meeting. Then, click on this link at the time of the meeting and join the Webex to speak: https://phoenixcitycouncil.webex.com/phoenixcitycouncil/onstage/g.php? MTID=ed8656083d255e40cd32cbb9837b84722 - Register via telephone at 602-262-6001 at least 1 hour prior to the start of this meeting, noting the item number. Then, use the Call-in phone number and Meeting ID listed below at the time of the meeting to call-in and speak. At the time of the meeting: - Watch the meeting live streamed on phoenix.gov or Phoenix Channel 11 on Cox Cable, or using the Webex link provided above. - Call-in to listen to the meeting. Dial 602-666-0783 and Enter Meeting ID 182 097 2555# (for English) or 182 413 7338# (for Spanish). Press # again when prompted for attendee ID. Para nuestros residentes de habla hispana: - Para registrarse para hablar en español, llame al 602-262-6001 al menos 1 hora antes del inicio de esta reunión e indique el número del tema. El día de la reunión, llame al 602-666-0783 e ingrese el número de identificación de la reunión 182 413 7338#. El intérprete le indicará cuando sea su turno de hablar. - Para solamente escuchar la reunión en español, llame a este mismo número el día de la reunión (602-666-0783; ingrese el número de identificación de la reunión 182 413 7338 #). Se proporciona interpretación simultánea para nuestros residentes durante todas las reuniones. City of Phoenix Printed on 5/19/2021 1
Transcript
Workforce and Economic Development
Subcommittee
Agenda Meeting Location:
City Council Chambers
200 W. Jefferson St.
Phoenix, Arizona 85003
phoenix.gov10:00 AMWednesday, May 26, 2021
OPTIONS TO ACCESS THIS MEETING
Request to speak at a meeting:
- Register online by visiting the City Council Meetings page on phoenix.gov at least 1 hour prior to the start of this meeting. Then, click on this link at the time of the meeting
- Register via telephone at 602-262-6001 at least 1 hour prior to the start of this meeting, noting the item number. Then, use the Call-in phone number and Meeting ID listed below at the time of the meeting to call-in and speak.
At the time of the meeting:
- Watch the meeting live streamed on phoenix.gov or Phoenix Channel 11 on Cox Cable,
or using the Webex link provided above.
- Call-in to listen to the meeting. Dial 602-666-0783 and Enter Meeting ID 182 097 2555#(for English) or 182 413 7338# (for Spanish). Press # again when prompted for attendeeID.
Para nuestros residentes de habla hispana:
- Para registrarse para hablar en español, llame al 602-262-6001 al menos 1 hora
antes del inicio de esta reunión e indique el número del tema. El día de la reunión,
llame al 602-666-0783 e ingrese el número de identificación de la reunión 182 413
7338#. El intérprete le indicará cuando sea su turno de hablar.
- Para solamente escuchar la reunión en español, llame a este mismo número el día
de la reunión (602-666-0783; ingrese el número de identificación de la reunión 182 413
7338 #). Se proporciona interpretación simultánea para nuestros residentes durante
This report transmits the third quarter report on Key Phoenix Economic
Indicators for fiscal year 2020-21 to the Workforce and Economic
Development Subcommittee.
THIS ITEM IS FOR INFORMATION ONLY.
Responsible Department
City of Phoenix Printed on 5/19/2021
2
Page 6
Page 12
May 26, 2021Workforce and Economic
Development Subcommittee
Agenda
This item is submitted by Assistant City Manager Jeff Barton and the
Budget and Research Department.
3 Development Agreement with Metrowest Development, LLC for the
Sale and Development of 814 N. 5th Ave.
This report provides the Workforce and Economic Development
Subcommittee with information regarding the request to enter into a
development agreement and any other agreements as necessary
(Agreements) with Metrowest Development, LLC, or its City-approved
designee (Developer), for the sale and development of a City-owned
property located at 814 N. 5th Ave. in downtown Phoenix. The sale of the
property will generate a one-time revenue of $350,000 in sales proceeds
to the City.
THIS ITEM IS FOR INFORMATION ONLY.
Responsible Department
This item is submitted by Deputy City Managers Gina Montes and Ginger
Spencer, and the Neighborhood Services and Community and Economic
Development departments.
INFORMATION AND DISCUSSION (ITEM 4)
4 Vacant Commercial Storefront Properties
This report provides the Workforce and Economic Development
Subcommittee with information regarding vacant commercial properties
and opportunities for repurposing these sites.
THIS ITEM IS FOR INFORMATION AND DISCUSSION.
Responsible Department
City of Phoenix Printed on 5/19/2021
3
Page 25
Page 27
May 26, 2021Workforce and Economic
Development Subcommittee
Agenda
This item is submitted by Deputy City Managers Ginger Spencer and Gina
Montes, and the Community and Economic Development, Neighborhood
Services, and Planning and Development departments.
DISCUSSION AND POSSIBLE ACTION (ITEM 5)
5 Discussion of the Government Property Lease Excise Tax
Program
This report provides the Workforce and Economic Development
Subcommittee with information regarding the City’s use of the Arizona
Government Property Lease Excise Tax (GPLET) in addition to the
results of a recent Downtown Residential and Commercial Absorption
study.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the
Community and Economic Development Department.
000 CALL TO THE PUBLIC
FUTURE AGENDA ITEMS
ADJOURN
City of Phoenix Printed on 5/19/2021
4
Page 32
May 26, 2021Workforce and Economic
Development Subcommittee
Agenda
For further information or reasonable accommodations, please call Corey Williams, Management Assistant II, City Manager's Office at 602-261-8875. 7-1-1 Friendly.
Persons paid to lobby on behalf of persons or organizations other than themselves must register with the City Clerk prior to lobbying or within five business days thereafter, and must register annually to continue lobbying. If you have any questions about registration or whether or not you must register, please contact the City Clerk's Office at 602-534-0490.
Members:
Councilwoman Laura Pastor, ChairCouncilwoman Debra Stark
Councilman Jim Waring
City of Phoenix Printed on 5/19/2021
5
Workforce and Economic Development Subcommittee
Report
Agenda Date: 5/26/2021, Item No. 1
Minutes of the Workforce and Economic Development Subcommittee Meeting
This item transmits the minutes of the Workforce and Economic DevelopmentSubcommittee Meeting on April 28, 2021, for review, correction or approval by theWorkforce and Economic Development Subcommittee.
THIS ITEM IS FOR POSSIBLE ACTION.
The minutes are included for review as Attachment A.
Responsible DepartmentThis item is submitted by Deputy City Manager Ginger Spencer and the CityManager's Office.
6
Phoenix City Council Workforce and Economic Development Subcommittee
Summary Minutes Wednesday, Apr. 28, 2021
City Council Chambers 200 W. Jefferson St. Phoenix, Ariz.
Subcommittee Members Present Subcommittee Members Absent Councilwoman Laura Pastor, Chair Councilwoman Debra Stark Councilman Jim Waring
CALL TO ORDER Chairwoman Pastor called the Workforce and Economic Development Subcommittee to order at 10:07 a.m. with Councilwoman Stark and Councilman Waring present.
CALL TO THE PUBLIC None.
MINUTES OF MEETINGS
1. Minutes of the Workforce and Economic Development Subcommittee MeetingCouncilwoman Stark made a motion to approve the minutes of the March 24, 2021Workforce and Economic Development Subcommittee meeting. Councilman Waringseconded the motion, which passed unanimously, 3-0.
CONSENT ACTION (ITEMS 2-3)
Items 2-3 were for consent action. No presentations were planned but staff was available to answer questions.
Councilwoman Stark made a motion to approve consent items 2-3. Councilman Waring seconded the motion, which passed unanimously, 3-0.
2. Three-Year Agreement with Phoenix Sister Cities, Inc.
3. Greater Phoenix Economic Council Annual Contract
DISCUSSION AND POSSIBLE ACTION (ITEMS 4-6)
4. Phoenix Convention Center Service Provider Relief - Consideration of ContractTerm Extensions
ATTACHMENT A
7
Interim Deputy City Manager John Chan introduced Interim Convention Center Director Jerry Harper and Deputy Convention Center Director Robby Ashton to present on the item.
Mr. Harper began by providing an overview of COVID-19 impacts on the Phoenix Convention Center (PCC), including the cancellation of 79 citywide conventions and 168 non-convention and theater events. He explained there had been significant losses of $13 million in facility rentals and parking revenue and $22.6 million in service partner commissions for catering, audio visual services, utilities and event security, totaling $35.6 million in top-line revenue lost from March 2020 through June 2021.
Mr. Harper provided an overview of the service partners contracted for events and serving as an extension of the PCC, including Aventura Catering, Smart City Networks, Commonwealth Electric, AV Concepts, and Contemporary Services Corporation. He explained clients would expect to receive the same level of service from staff as well as these service providers.
Mr. Harper explained the service provider contracts required the companies to invest approximately $16.2 million into the center. He provided examples of these investments, such as rebranded concessions, the construction of Huss Brewpub on Monroe Street, and upgrades to the PCC distributed antenna system to provide visitors with enhanced 5G connectivity.
Mr. Ashton reiterated the significant loss in revenue experienced by these service partners. He explained the partnerships with contracted service providers were commission-based, with generated revenue belonging to the provider and commission paid to the Convention Center.
Mr. Ashton requested subcommittee approval of a two-year extension to five PCC service provider contracts to allow them additional time to realize return on their capital investments at no additional cost to the city.
Chairwoman Pastor opened the floor for public comment.
Danielle Lazor, representing food and beverage provider Aventura, expressed support for the item. She described the company’s commitment to the Convention Center and discussed their $6.5 million investment to improve the facility and construct Huss Brewpub. She added that the proposed action would allow additional time to recoup a minimum return on their investment.
Dan Shannon, representing utility services provider Commonwealth Electric, expressed support for the item. He discussed the impacts of the COVID-19 pandemic, including significant revenue losses, and expressed gratitude for the subcommittee’s consideration.
8
Councilwoman Stark expressed her support for the service provider partnerships and excitement for the development of Huss Brewpub.
Chairwoman Pastor requested details on the contractors’ plans to bring employees back to the Phoenix Convention Center.
Mr. Chan indicated Aventura had the largest number of employees and requested Ms. Lazor respond to the Chairwoman’s question.
Ms. Lazor explained that employees would be recalled to the workplace in order of seniority once scheduled events began in June 2021. She added that Unite Here Local 11 established a long-term agreement to represent these employees and stated the company maintained frequent contact with employees throughout the pandemic.
Councilwoman Stark made a motion to approve staff’s recommendation. Councilman Waring seconded the motion, which passed unanimously, 3-0.
5. Development Agreement with Laveen Baseline LLC for Installation of PublicInfrastructure ImprovementsInterim Deputy City Manager John Chan introduced Community and EconomicDevelopment (CED) Director Christine Mackay to present on the item.
Ms. Mackay began by describing the need for commercial development in the Laveen area and introduced CED Project Manager Karla Scott to assist with the presentation.
Ms. Scott provided an overview of the Laveen Park Place lifestyle center, owned by Laveen Baseline LLC, which would be developed across 65 acres on the southeast corner of the Loop 202 Ed Pastor Freeway and Baseline Road. She described the phased approach to the development, which included a 50,000-square foot lifestyle center in the initial phase, and an entertainment complex in the next phase, anchored by Harkins Theatres.
Ms. Scott outlined the public infrastructure improvements required for the development, specifically half street construction of 59th Avenue from Baseline Road to north of South Mountain Avenue.
Ms. Scott discussed the proposed terms of the development agreement, including construction of the half street of 59th Avenue, compliance with Arizona Revised Statute (A.R.S.) Title 34 on Public Buildings and Improvements, and completion of the lifestyle center. She explained the maximum reimbursement would be $2.5 million, with an annual reimbursement of $250,000. She added that reimbursement would not commence until infrastructure improvements were completed.
Ms. Mackay noted that 59th Avenue had been represented on the City of Phoenix Street Classification Map. She requested the subcommittee recommend City Council approval to negotiate and enter into a development agreement, and any other agreements as necessary, with Laveen Baseline LLC, or its City-approved designee, for
9
the installation of public infrastructure improvements located along 59th Avenue from Baseline Road to north of the future South Mountain Avenue alignment.
Councilwoman Stark asked if the developer would be going above and beyond their typical services by doing construction along 59th Avenue.
Ms. Mackay confirmed that this project would require them to go above and beyond to making improvements to 59th Avenue.
Councilman Waring asked if it would be fair to say the developer would be paid to accelerate improvements the city would have done on its own. He noted the project would be a public benefit and would not subsidize the developer.
Ms. Mackay affirmed his characterization of the project and explained that the developer would comply with A.R.S Title 34.
Chairwoman Pastor emphasized the benefit of the project for residents and asked if the project would take the full 10 years.
Ms. Mackay stated the developer’s intention was to accelerate the project, with a cost of $250,000 each year.
Councilwoman Stark made a motion to approve staff’s recommendation. Councilman Waring seconded the motion, which passed unanimously, 3-0.
6. One-Stop Operator Services Request for Proposals Contract AwardInterim Deputy City Manager John Chan introduced Community and EconomicDevelopment (CED) Director Christine Mackay to present on the item.
Ms. Mackay began by sharing the history of one-stop operator services in Phoenix and introduced CED Workforce Program Manager LaSetta Hogans and CED Procurement Manager Gretchen Wolfe to assist with the presentation.
Ms. Hogans provided an overview of one-stop operator services, including direct services at three comprehensive job centers throughout the city and affiliate locations in public housing sites.
Ms. Wolfe discussed the procurement timeline, marketing efforts, and the proposal evaluation criteria that had previously been approved by the subcommittee and City Council. She explained that five proposals had been submitted, of which four proposals were deemed responsive, and stated the recommended proposer was Equus Workforce Solutions.
Ms. Hogans shared that Equus Workforce Solutions had an extensive background in workforce development, including administration of one-stop operator services across 15 states, youth services for Maricopa County, and their current function as the one-stop operator for Yuma County.
10
Ms. Mackay explained the contract would have a term of 13 months, with three one-year options, which represented $3.1 million if all options were exercised. She emphasized that this agreement would be completely funded by the department’s Workforce Innovation and Opportunity Act (WIOA) grant from the U.S. Department of Labor.
Ms. Mackay requested the subcommittee recommend City Council approval to award a contract to Arbor E&T, LLC doing business as Equus Workforce Solutions to provide One-Stop Operator Services.
Chairwoman Pastor asked if WIOA funding could be used for this service.
Ms. Mackay confirmed that one-stop operator services represented one of the intended uses of WIOA funds.
Councilwoman Stark recalled a tour of the Sunnyslope facility and commended the work of staff at that location. She expressed her appreciation for one-stop operator services in her district.
Councilwoman Stark made a motion to approve staff’s recommendation. Councilman Waring seconded the motion, which passed unanimously, 3-0.
CALL TO THE PUBLIC None.
FUTURE AGENDA ITEMS Chairwoman Pastor requested an update on theme park legislation and the impacts of the gaming compact on the City of Phoenix.
Mr. Chan stated a presentation on those items could be added and mentioned the planned tax discussion for the next meeting.
Chairwoman Pastor asked Councilwoman Stark if she wanted to hear an update on commercial properties, specifically regarding the Teapot. Councilwoman Stark stated she would like to have this discussion during an upcoming meeting, but that she would be happy to defer the item to a later date.
ADJOURNMENT Chairwoman Stark adjourned the meeting at 10:44 a.m.
Respectfully submitted,
Adeoffer-Marie Rabusa Management Intern
11
Workforce and Economic Development Subcommittee
Report
Agenda Date: 5/26/2021, Item No. 2
Key Phoenix Economic Indicators Quarterly Report
This report transmits the third quarter report on Key Phoenix Economic Indicators forfiscal year 2020-21 to the Workforce and Economic Development Subcommittee.
THIS ITEM IS FOR INFORMATION ONLY.
SummaryAs part of efforts to continuously improve budget forecasting and reporting, the Budgetand Research Department compiles 18 key Phoenix economic indicators into theattached quarterly report. The data is collected with the assistance of the Aviation,Budget and Research, Planning and Development, Public Works and Water ServicesDepartments. The attached report provides insightful data that, when reviewedcollectively, can reveal a helpful overall picture of recent economic activity trendsspecifically within Phoenix. Although outside sources of economic data are alsoavailable, most of that information covers the entire Greater Phoenix region or theState of Arizona. However, with the exception of two statewide measures, theindicators in the attached report relate to data specifically within City of Phoenixboundaries, which may differ from the region or state. The indicators attached to thisreport (Attachment A) are for review by this Subcommittee.
The 18 Phoenix data measures include:
Sky Harbor International Airport Passengers: This measure indicates regional tourismand business activity.
Phoenix Water Service Accounts: This measure may indicate changes in Phoenixpopulation and commercial and residential property development.
New Phoenix Single Family Home Construction Permits Issued: This measure mayindicate Phoenix population growth and shifts in housing preferences ordemographics, as well as spill over benefits to other economic sectors such asconstruction, retail, manufacturing, and utilities.
New Phoenix Multifamily Units Permitted: Like single family permits, this measure
12
Agenda Date: 5/26/2021, Item No. 2
may indicate Phoenix population growth and shifts in housing preferences ordemographics, as well as spill over benefits to other economic sectors such asconstruction, retail, manufacturing, and utilities.
Total Value of Permitted Phoenix Activity: Along with other factors, this measure mayprovide an indication of Phoenix property market values and development, as well asoverall strength for commercial and residential markets.
Phoenix Solid Waste Residential Customer Growth: This measure may indicatechanges in Phoenix revenue generated through services provided by the Public WorksDepartment.
City of Phoenix Overall Sales Tax: This measure indicates overall economic activityrelated to all categories of taxable sales within Phoenix.
City of Phoenix Retail Sales Tax: This measure indicates economic activity related totaxable retail sales and consumer spending levels within Phoenix.
City of Phoenix Hotel/Motel Sales Tax: This measure indicates economic activityrelated to tourism within Phoenix.
City of Phoenix Restaurants/Bars Sales Tax: This measure indicates economicstrength, population changes, and tourism activity within Phoenix.
City of Phoenix Contracting Sales Tax: This measure indicates economic activityrelated to taxable commercial and residential construction in Phoenix.
State Overall Sales Tax: This measure indicates economic activity related to allcategories of taxable sales within the state of Arizona.
State Vehicle License Tax: This measure indicates vehicle sales activity within thestate of Arizona.
Phoenix Assessed Property Valuation: This measure is based on the Primary NetAssessed Valuation, which provides the basis for City of Phoenix property tax revenue.
Phoenix Full Cash Property Value: This measure indicates the market value ofresidential and commercial property within Phoenix and is an important economicindicator relating to the overall commercial and residential property markets.
Phoenix Median Household Income: This annually updated measure provides the mid
13
Agenda Date: 5/26/2021, Item No. 2
-level household income within Phoenix, an important indicator of job and wage activitylevels.
Phoenix Unemployment Rate: This annually updated measure shows the percentageof the active labor force currently unemployed within Phoenix, an important indicator ofoverall economic health.
Phoenix Labor Force Participation: Another measure of employment levels, thisannually updated measure shows the percentage of the population aged 16 and oldercurrently in the Phoenix labor force, which can help account for "discouraged workers"not captured in the unemployment rate.
Each measure provides the year-to-date totals and year-to-date growth ratescompared to the prior year; prior three-year average, and peak year (when the peakyear differs from the current year).
Responsible DepartmentThis item is submitted by Assistant City Manager Jeff Barton and the Budget andResearch Department.
14
Phoenix Economic Indicators Report
Third Quarter FY20 20-21
Table of Contents
Phoenix Sky Harbor Airport Total Passengers …. 1 City Sales Tax - Restaurants/Bars ….………………… 5
Water Service Accounts ……………………………..….. 1 City Sales Tax - Contracting …….………………………. 6
New Home Construction Permits Issued ………... 2 State Sales Tax - Total ………………………………….. 6
New Multifamily Units Permitted …………………..... 2 State Vehicle License Tax ………………………………. 7
Total Valued of Permitted Activity …………………... 3 Phoenix Primary Net Assessed Value …….….….. 7
Solid Waste –Residential Customer Growth … ..3 Phoenix Full Cash Value …………………….…………… 8
City Sales Tax - Total .…..………………………………… 4 Phoenix Median Household Income ……………… 8
City Sales Tax - Hotel/Motel ……………………………. 5 Phoenix Labor Force Participation …….……….….. 9
Executive Summary
Economic indicators, such as those included in this report, provide measurements for
evaluating the health of our economy, the latest business cycles, and how consumers are
spending and generally faring. Included in this report are aviation, utility, new develop-
ment, state and local sales tax, vehicle sales, property values, and employment statistics.
Each statistic is shown through a graph presenting current year-to-date data (for data
available on a monthly basis), prior year-to-date, prior three year average of year-to-date
data, and peak year data (if current year is not the peak year) for a quarter of the current
fiscal year (July 1 - June 30). Each indicator has its own peak year where performance
was at its highest since 2000. Each graph is accompanied by a description of the signifi-
cance of the measure as an economic indicator, and a statement about the current year
data in relation to prior years. Many of the statistics are measures on a monthly basis, but
a few are only available quarterly or annually.
15
Phoenix Sky Harbor Airport Total Passengers
Current YTD Compared to:Prior Year -49.9%
3 Year Avg. -50.4%Peak Year (FY
2018-19)-51.3%
TotalsCYTD 16,424,000PYTD 32,757,000
3YRAVG 33,105,000Peak Year (FY
2018-19)33,751,000
Current YTD Compared to:Prior Year 0.8%
3 Year Avg. 1.7%Peak Year (FY
2019-20)1.7%
TotalsCYTD 436,763PYTD 433,140
3YRAVG 429,379Peak Year (FY
2019-20)433,140
Significance: The number of passengers utilizing the Phoenix Sky Harbor airport can be an indicator for regional tourism and business activity.
Current Year: Passenger activity has been significantly negatively impacted due to COVID-19. Passenger Traffic for the month of March decreased 49.9% as compared with March of the previous year and is 50.4% lower than the three year average. Industry data lags two months.
Total Single-Family Water Service AccountsSignificance: Single-family water services account growth is a measurement indicating revenue generated through services provided by the Public Works Department. The number of water service accounts can be an indicator of changes in population and development.
Current Year: Water service accounts reflect a consistent upward trend in residential customers.
425,000
427,000
429,000
431,000
433,000
435,000
437,000
439,000
JUL AUG SEP OCT NOV DEC JAN FEB MAR
Current YTD Prior YTD 3YR AVG YTD
JUL AUG SEP OCT NOV DEC JAN FEB MAR0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
Current YTD Prior YTD 3YR AVG YTD Peak Year (FY2018-19)
16
Total New Home Construction Permits Issued
Current YTD Compared to:Prior Year 13.1%
3 Year Avg. 11.2%Peak Year (FY
2004-05)-62.4%
TotalsCYTD 3,419PYTD 3,024
3YRAVG 3,076Peak Year (FY
2004-05)9,100
New Multifamily Units Permitted
Current YTD Compared to:Prior Year -16.1%
3 Year Avg. 7.9%Peak Year (FY
2019-20)-0.7%
TotalsCYTD 5,030PYTD 5,997
3YRAVG 4,661Peak Year (FY
2019-20)5,997
Significance: New single family homes are a key economic indicator, reflecting local population growth as well as spill over benefits to other sectors of the economy such as demand for construction labor/materials, retail, manufacturing and utilities.
Current Year: Planning and Development experienced a 3.7% growth in residential construction permits in 2019-20 over the prior year and 7.2% over the 3 year average. They are projecting continued growth into the next fiscal year based on recent population growth in Maricopa County.
Significance: New multi-family construction is a key economic indicator of local population growth or shifts in housing preferences and its spill over benefits to other sectors of the economy such as demand for construction labor/materials, retail, manufacturing and utilities.
Current Year: Planning and Development experienced a 41.9% growth in multi-family residential permits in 2019-20 over the prior year and 33.1% over the 3 year average. They are projecting irregular growth due to the number of large projects currently being built by out of state developers and local developers not wanting to saturate the market within the infill area. Plans under review will continue to add units as local developers move forward with projects that attract a different market than the infill projects.
01,0002,0003,0004,0005,0006,0007,0008,0009,000
10,000
JUL AUG SEP OCT NOV DEC JAN FEB MAR
Current YTD Prior YTD 3YR AVG YTD Peak Year (FY2004-05)
400
1,400
2,400
3,400
4,400
5,400
6,400
JUL AUG SEP OCT NOV DEC JAN FEB MAR
Current YTD Prior YTD 3YR AVG YTD
17
Total Value of Permitted Activity
Current YTD Compared to:Prior Year 10.7%
3 Year Avg. 15.3%Peak Year (FY
2019-20)42.9%
TotalsCYTD $4,864,885,378PYTD $4,394,594,244
3YRAVG $4,221,153,426Peak Year (FY
2019-20)$4,394,594,244
Solid Waste - Residential Customer Growth
Current YTD Compared to:Prior Year 0.9%
3 Year Avg. 1.7%Peak Year (FY
2019-20)1.7%
TotalsCYTD 409,087PYTD 405,587
3YRAVG 402,307Peak Year (FY
2019-20)405,587
Significance: The valuation of new construction is an indicator of one facet of Phoenix's economic strength because it reflects the permit value of new construction projects.
Current Year: Planning and Development experienced a 19.7% increase in permit valuation in 2019-20 over the prior year and a 16.9% increase over the 3 year average. They are projecting slightly increasing permit valuation for 2020-21 versus the prior year due to state projections of population growth in Maricopa County.
Significance: Residential customer growth is an indicator of one facet of Phoenix's economic strength because it reflects the growth in households. The graph shows a consistent upward trend in the count of Solid Waste residential customers.
Current Year: The number of residential living units being serviced by the Public Works Department Solid Waste Division is consistently trending upwards. This is a new measure being tracked. Solid Waste staff recently updated their methodology used to track this measure, resulting in a retroactive udpate for the numbers for November and December 2020.
$400,000,000
$1,400,000,000
$2,400,000,000
$3,400,000,000
$4,400,000,000
$5,400,000,000
JUL AUG SEP OCT NOV DEC JAN FEB MAR
Current YTD Prior YTD 3YR AVG YTD
398,000
400,000
402,000
404,000
406,000
408,000
410,000
JUL AUG SEP OCT NOV DEC JAN FEB MARCurrent YTD Prior YTD 3YR AVG YTD
18
City Sales Tax - Total
Current YTD Compared to:Prior Year 3.3%
3 Year Avg. 11.1%Peak Year (FY
2019-20)10.9%
TotalsCYTD $781,771,000PYTD $756,437,000
3YRAVG $703,836,000Peak Year (FY
2019-20)$756,437,000
City Sales Tax - RetailSignificance: Retail sales tax represents retail sales, not including the sales tax on food.
Current YTD Compared to:Prior Year 15.2%
3 Year Avg. 25.9%Peak Year (FY
2019-20)27.8%
TotalsCYTD $358,027,000PYTD $310,831,000
3YRAVG $284,312,333Peak Year (FY
2019-20)$310,831,000
Current Year: City sales tax collections have been negatively impacted by COVID-19 primarily in the hotel/motel, restaurants/bars, and amusement sales tax categories. However, current year growth accounts for additional retail sales tax collected from online retailers which became effective October 2019. Prior year values have not been adjusted for inflation.
Current Year: City sales tax have been negatively impacted by COVID-19 however, current year growth accounts for additional retail sales tax collected from online retailers which became effective October 2019. Prior year values have not been adjusted for inflation.
Significance: City sales tax (all funds including: General Fund, T2050, Public Safety, 3PI, Convention Center, Sports Facilities, and Capital Construction) represents overall local economic activity related to taxable sales.
JUL AUG SEP OCT NOV DEC JAN FEB MAR$50,000,000
$150,000,000
$250,000,000
$350,000,000
$450,000,000
$550,000,000
$650,000,000
$750,000,000
$850,000,000
Current YTD Prior YTD 3YR AVG YTD
JUL AUG SEP OCT NOV DEC JAN FEB MAR$22,000,000
$72,000,000
$122,000,000
$172,000,000
$222,000,000
$272,000,000
$322,000,000
$372,000,000
$422,000,000
Current YTD Prior YTD 3YR AVG YTD
19
City Sales Tax - Hotel/Motel
Current YTD Compared to:Prior Year -49.8%
3 Year Avg. -45.4%Peak Year (FY
2018-19)-45.5%
TotalsCYTD $18,804,000PYTD $37,452,000
3YRAVG $34,414,667Peak Year (FY
2018-19)$34,504,000
City Sales Tax - Restaurants/Bars
Current YTD Compared to:Prior Year -17.8%
3 Year Avg. -13.5%Peak Year (FY
2018-19)-13.6%
TotalsCYTD $55,734,000PYTD $67,770,000
3YRAVG $64,396,000Peak Year (FY
2018-19)$64,491,000
Significance: Hotel/Motel sales tax revenue represents taxable sales for these businesses and is an indicator of tourism activity.
Current Year: Hotel/motel sales tax collections has been negatively impacted by COVID-19. Prior year values have not been adjusted for inflation.
Significance: Restaurants/Bars sales tax revenue represents taxable sales for these businesses and is an indicator of economic strength, population growth, and tourism.
Current Year: Restaurants/bars sales tax collections has been negatively impacted by COVID-19. Prior year values have not been adjusted for inflation.
JUL AUG SEP OCT NOV DEC JAN FEB MAR$1,000,000
$6,000,000
$11,000,000
$16,000,000
$21,000,000
$26,000,000
$31,000,000
$36,000,000
$41,000,000
Current YTD Prior YTD 3YR AVG YTD Peak Year (FY2018-19)
JUL AUG SEP OCT NOV DEC JAN FEB MAR$4,500,000
$14,500,000
$24,500,000
$34,500,000
$44,500,000
$54,500,000
$64,500,000
$74,500,000
Current YTD Prior YTD 3YR AVG YTD Peak Year (FY2018-19)
20
City Sales Tax - Contracting
Current YTD Compared to:Prior Year 5.2%
3 Year Avg. 27.5%Peak Year (FY
2006-07)-4.4%
TotalsCYTD $70,189,000PYTD $66,735,000
3YRAVG $55,065,333Peak Year (FY
2006-07)$73,425,000
State Sales Tax - Total
Current YTD Compared to:Prior Year 9.3%
3 Year Avg. 17.4%Peak Year (FY
2019-20)18.9%
TotalsCYTD $142,472,000PYTD $130,398,000
3YRAVG $121,359,333Peak Year (FY
2019-20)$130,398,000
Significance: Contracting sales tax revenue presents activity in the commercial, retail and residential construction markets.
Current Year: Prior year values have not been adjusted for inflation.
Significance: State sales tax accounts for approximately 37.6% of total state shared revenues based on the FY 2019-20 actuals. Total state shared revenue is approximately 35.0% of total general fund revenue. State shared sales tax revenues are distributed to cities and towns based on relative population share in Arizona. The population share in FY 2000-01 was 33.7%. The current population share is 29.03% as of June 2020.
Current Year: State sales tax collections have been negatively impacted by COVID-19 primarily in the hotel/motel, restaurants/bars, and amusement sales tax categories. However, current year growth accounts for additional retail sales tax collected from online retailers which became effective October 2019. Prior year values have not been adjusted for inflation.
JUL AUG SEP OCT NOV DEC JAN FEB MAR$5,000,000
$15,000,000
$25,000,000
$35,000,000
$45,000,000
$55,000,000
$65,000,000
$75,000,000
$85,000,000
Current YTD Prior YTD 3YR AVG YTD Peak Year (FY2006-07)
Current Year: Year-to-Date vehicle license tax collections reflect adjustments made by the Arizona Department of Transportation due to a new system implementation, and reflect prior year collections in the current year, causing revenue collections to be artificially inflated. Prior year values have not been adjusted for inflation.
Current Year: Tax year 2021 (FY 2021-22) Primary NAV grew by 6.3% over the prior year; 2.3% is attributable to new property and 4.0% is attributable to appreciation in previously-taxed property. Prior-year values have not been adjusted for inflation.
Significance: Phoenix's assessed valuation is based on the Primary Net Assessed Value (Primary NAV), which beginning in FY 2015-16, is the single value used for calculating both Primary Property Taxes and Secondary Property Taxes. The assessed valuation provides an indicator of the basis for City property tax revenue. This statistic is updated once per year, in February.
Significance: State vehicle license tax accounts for approximately 15.4% of total state shared revenues based on the FY 2019-20 actuals. Total state shared revenue is approximately 35.0% of total general fund revenue in Phoenix. State shared vehicle license tax revenues are distributed to cities and towns in Maricopa County based on their relative population share of Maricopa County. The City of Phoenix's population share in FY 2000-01 was 48.51%, and the current population share is 40.41%, as of June 2020.
$0
$4,000,000,000
$8,000,000,000
$12,000,000,000
$16,000,000,000
$20,000,000,000
3YR AVG TY 2019 TY 2020 TY 2021 Peak Year(TY 2010)
Series1TY = Tax Year
JUL AUG SEP OCT NOV DEC JAN FEB MAR$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
Current YTD Prior YTD 3YR AVG YTD
22
Phoenix Full Cash Value
Calendar Year Compared to:Prior Year 10.4%
3 Year Avg. 9.7% Peak Year (TY
2019)N/A
Totals2020 $198,012,408,5782019 $179,418,109,860
3YRAVG $180,568,569,804 Peak Year (TY
2020)N/A
Phoenix Median Household Income
Calendar Year Compared to:Prior Year 5.2%
3 Year Avg. 0.0%Peak Year (CY
2008)-9.4%
Totals2018 $54,7652017 $52,080
3YRAVG $52,058Peak Year (CY
2008)$57,507
Significance: This measure includes the income of the householder and all other individuals 16 years of age and older in the household. Median income is the amount that divides the income distribution into two equal groups, half at income levels above that amount, and half at income levels below that amount.
Current Year: The increase in 2018 over prior years is an indication of moderate recovery from the 2008 recession. Data is from the U.S. Census Bureau American Community Survey Five-Year Estimates. Peak year reflects the highest since 2005 (the oldest readily available data set). The most recent ACS Five-Yar Estimate data is from 2018.
Significance: Full cash value is an indicator of both commercial and residential property values, an important indicator of one facet of economic health. This statistic is updated once per year, in February, and lags market conditions by approximately one year. Due to assessed valuation growth limits and statutory changes in assessment ratios, however, trends in full cash value do not correlate to trends in the tax base for property taxes.
Current Year: Tax year 2020 (FY 2020-21) full cash value grew by 10.4% over the prior year. Growth rates were consistent across agricultural, commercial and residential property types. Prior year values have not been adjusted for inflation.
Significance: This measures the percentage of the population (16 years of age and older) that is in the labor force. The labor force is defined as the total population of employed and unemployed people (16 years of age and older). People are classified as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work.
Current Year: The labor force participation rate slightly increased from 2017 to 2018 indicating an increase in the percentage of the population that is either employed or unemployed and actively looking for work. Data is from the U.S. Census Bureau American Community Survey Five-Year Estimates. Peak year reflects the highest since 2005 (the oldest readily available data set). The most recent ACS Five-Yar Estimate data is from 2018.
Significance: This measures the percentage of the labor force that are unemployed. Those individuals (16 years of age and older) who do not have a job but are available for work, except in the case of temporary illness, and actively seeking work during the week including the 12th of the month. The only exceptions to these criteria are individuals who are waiting to be recalled from a layoff and individuals waiting to report to a new job within 30 days—these, too, are considered unemployed. This statistic is updated once per year, in April.
Current Year: The unemployment rate in 2020 reflects nationwide impacts of COVID-19. Data is from the United States Department of Labor, Bureau of Labor Statistics. Peak year reflects the highest since 1990 (the oldest readily available data set).
Development Agreement with Metrowest Development, LLC for the Sale andDevelopment of 814 N. 5th Ave.
This report provides the Workforce and Economic Development Subcommittee withinformation regarding the request to enter into a development agreement and anyother agreements as necessary (Agreements) with Metrowest Development, LLC, orits City-approved designee (Developer), for the sale and development of a City-ownedproperty located at 814 N. 5th Ave. in downtown Phoenix. The sale of the property willgenerate a one-time revenue of $350,000 in sales proceeds to the City.
THIS ITEM IS FOR INFORMATION ONLY.
SummaryThe Developer submitted its proposal in response to the City's Request for Proposals(RFP) for the disposition and redevelopment of an approximately 7,000-square-foot,City-owned vacant lot located at 814 N. 5th Ave in downtown Phoenix (Site). The Sitewas previously developed with a small multi-family building, which was purchased withU.S. Department of Housing and Urban Development Community Development BlockGrant (CDBG) funds by the Neighborhood Services Department (NSD) in the early2000’s to facilitate revitalization through blight elimination in the RooseveltNeighborhood. In November 2005, the structure suffered severe fire damage and wassubsequently demolished.
The Developer proposes to relocate and rehabilitate the historic home known as theSeargeant-Oldaker House to the Site. The Seargeant-Oldaker House is currentlylocated at 649 N. 3rd Ave. However, if relocation of the historic home is unsuccessful,the Developer will build a home on the Site that is consistent with the character ofarea. The Developer has agreed to purchase the Site for $350,000, which is theappraised value and the minimum purchase price listed in the RFP.
This project will preserve a threatened historic building, resolving a significantcommunity concern. In addition, an unproductive vacant lot in the Historic RooseveltNeighborhood will be activated and an opportunity for new residents downtown will becreated, which are outcomes supported by the Council-adopted Downtown StrategicPlan. Furthermore, this project will put a vacant City property back into private and
25
Agenda Date: 5/26/2021, Item No. 3
taxable use. The City will only transfer title of the Site when permits to relocate andrenovate the home are paid for and approved. The City intends to enter into anagreement to allow the Developer to complete some utility work and site preparationprior to the closing of the transaction.
Procurement InformationThe City received two proposals for the North Fifth Avenue Parcel Sale andRedevelopment Request for Proposal (RFP-CED20-NFA), which was issued on Sept.29, 2020. The proposals were evaluated by a panel comprised of representatives fromthe development community and City staff from the Community and EconomicDevelopment, Planning and Development, and Neighborhood Services departments.On Jan. 8, 2021, the panel recommended the City begin negotiations with MetrowestDevelopment, LLC, the top-ranked proposer.
Financial ImpactThe sale of the Site will generate a one-time $350,000 sales proceed to the City, andwill put the 0.16-acre property back into private ownership, which will generate net newproperty tax revenues. The proceeds will be returned to the CDBG program managedby NSD. There is no impact to the General Fund.
Public OutreachStaff presented this proposal to the Downtown Voices Coalition on April 10, 2021, theRoosevelt Action Association on April 20, 2021, and the City's Central City VillagePlanning Committee on April 12, 2021.
Concurrence/Previous Council ActionThis item was recommended for approval by the Land Use and LivabilitySubcommittee at the May 19, 2021 meeting by a vote of 3-0.
Location814 N. 5th Ave.Council District: 7
Responsible DepartmentThis item is submitted by Deputy City Managers Gina Montes and Ginger Spencer,and the Neighborhood Services and Community and Economic Developmentdepartments.
26
Workforce and Economic Development Subcommittee
Report
Agenda Date: 5/26/2021, Item No. 4
Vacant Commercial Storefront Properties
This report provides the Workforce and Economic Development Subcommittee withinformation regarding vacant commercial properties and opportunities for repurposingthese sites.
THIS ITEM IS FOR INFORMATION AND DISCUSSION.
SummaryAt the direction of the Workforce and Economic Development Subcommittee at itsMarch 24, 2021 meeting, City staff have collaborated to provide an overview of vacantcommercial properties and opportunities for repurposing these sites.
Over the past several years, there has been a downward shift in commercial propertiesthat has resulted in rising vacancies. Prior to the COVID-19 pandemic (pandemic), theretail market was undergoing dramatic changes that were already leaving manycommercial properties vacant. Changes such as advances in shopping technology,retailers/brands that have become irrelevant, and general shifts in consumer shoppingbehavior and preferences. Examples include the rise of the bargain retailer; consumerconscientiousness of environmentally friendly brands; a shift of focus to health andwellness and minimalist lifestyles; cult following of brands, and the need for“Instagrammable” and experiential spaces have all affected the retail market. Retailersunable to accommodate these changes began to struggle and fell behind.
The pandemic exacerbated the issues struggling spaces were already experiencing.Retailers were forced to close and further change how they do business. Forcedadvances in technology from e-commerce competitors greatly affected businesses thatdid not have the technological advances nor funding to pivot and compete with onlineretailers. Restrictions placed on in-person shopping and services further placedconstraints on retailers that depended on their brick and mortar space. Issues such asthese ultimately forced the permanent closure of many businesses.
The average U.S. retail square footage is 28 square feet (SF) per capita; however, inPhoenix, the average is 40.5 SF per capita. Maricopa County zoning patternsestablished a 300-foot swath of commercial zoning along arterial streets, thus Phoenix
27
Agenda Date: 5/26/2021, Item No. 4
was built on the premise that each neighborhood should include four corners of retailresulting in the City becoming over-retailed. This has further hindered strugglingproperties making them irrelevant over the past decade as too much retail on oneintersection cannot be supported financially. It should be acknowledged that someproperties built just for retail, will never be suitable for retail again. As neighborhoodneeds change, there are redevelopment opportunities that have presented themselvesin the form of conversions to affordable housing, mixed use projects and schools.
ConsiderationsMany older buildings are good spaces but cannot be used due to infrastructurerequirements that are not cost effective as well as site and building issues such as nocertificate of occupancy, asbestos mitigation and lack of sprinkler systems, which are arequirement when repurposing older un-sprinklered retail buildings. For example, thework that accompanies a fire sprinkler system includes an underground fire line, firebackflow preventer and a street tap. These are costly items and often deterredevelopment efforts, causing spaces to remain vacant for long periods of time.However, updates and improvements such as these can open up possibilities, as theyincrease the allowable area of an occupancy without changing the building’sconstruction.
Properties with large contiguous space otherwise known as "big box" properties arerecognized by the Community and Economic Development Department (CEDD) asbuildings that are 20,000 SF and larger. Phoenix's big box inventory includes 38properties totaling 4.8 million SF. Of these big box properties,19 buildings are currentlyvacant. It should be noted that some of these spaces are currently underredevelopment and are acknowledged and actively marketed by landlords. Uses suchas funtertainment concepts, fitness/health and wellness, e-commerce/fulfillment,temporary (seasonal) tenants, store within a store concepts, and niche retail haveoccupied big box spaces.
Big box retail buildings are an "M" occupancy classification and are designed underthe unlimited building area provisions of the building code. Often, many proposedreuses of big box buildings are for a new Assembly use "A" occupancy. Unlike theretail use, allowances for an assembly use in an unlimited area building are veryrestricted in the City's building code. This may require retrofit of fire walls orimprovement of the building’s type of construction which can also be very costly.Change of use also triggers sprinkler requirements and other potential modifications tomeet City code standards.
Furthermore, some retail properties are so distressed they need to be partially orcompletely demolished and/or rezoned to make development feasible. Failed malls are
28
Agenda Date: 5/26/2021, Item No. 4
a testament to this as properties such as Metrocenter Mall at approximately 1.4 millionSF, add to vacancy numbers. Successful mall redevelopments, such as Park CentralMall are an example of the potential uses that can go into underutilized mall spaces.
State of the Phoenix MarketPhoenix's retail inventory is approximately 69 million SF. Current retail vacancy sits at8.3 percent compared to six percent pre-pandemic. According to Statista, a leadingprovider of market and consumer data, the national retail vacancy rate is 20 percent, acombined average that includes malls and strip centers.
Aged shopping centers that were already experiencing high vacancy rates, known as“struggling centers,” are recognized by CEDD as shopping centers which contain atleast 25,000 SF of total retail space and are more than 25 percent vacant. The City'scurrent shopping center inventory is 409, totaling almost 34 million SF. Of these, 28shopping centers are considered “struggling centers.” There are instances of overlapwith big box vacancies in which a single center could have two big box retailersequaling a high vacancy rate. The large square footage of vacant malls further adds tovacancy numbers as they are considered shopping centers as well.
Filling vacant spaces is a high priority for CEDD as they actively capture, market andassist vacant property owners when marketing Phoenix to investors, site selectors andbrokers. Additional efforts include:
· Mapping of vacant big box/shopping centers.
· Vacancy monitoring of overall retail inventory.
· Conducting regular market research to stay on top of retail trends and learn aboutinnovative retail tenant concepts and redevelopment projects.
· Marketing materials for up-and-coming and struggling areas.
· Regularly attending community business meetings to understand community wantsand needs.
· Working closely with the City's Planning and Development (PDD) andNeighborhood Services departments (NSD) to support small businesses and largeretailers when vacating a space or locating to Phoenix.
· Working with the Phoenix Police Department, PDD, and NSD to revitalize neglectedareas of the City.
City Assistance and Legal ConsiderationsLegal rulings such as CityNorth and Schires v. Carlat have placed limitations onassistance the City can offer for private development. However, developers haveaccess to the following City programs that can assist to support redevelopment:
29
Agenda Date: 5/26/2021, Item No. 4
· PDD's Office of Customer Advocacy (Adaptive Reuse Program).
· PDD's Permit by Inspection Program.
· PDD's Self-Certification Program for large buildings. A noted example includes,Chompie’s, a full-service restaurant in business since 1979. The owners are in theprocess of relocating one of their restaurants to a former vacant big box center atthe northeast corner 32nd Street and Cactus Road. This Chompie's location will beopen within one year of beginning the Self-Certification Program process, evenduring the pandemic.
· Other NSD Community Development Block Grant (CDBG) funds.
· Historic Preservation Conservation Easements. Notable projects include: MADE ArtBoutique; The Van Buren; and Welnick Marketplace.
· CEDD Development Agreements to assist with public infrastructure and openspace.
Ideas Moving Forward and Next StepsAlthough legalities limiting City assistance exist, the following proposed ideas canassist to provide opportunities for repurposing of vacant space:
· Expanding the Adaptive Reuse Program.
· Expanding federal CDBG programs, where feasible, to help with revitalizingstruggling properties.
· Exploring options to create an economic incentive program utilizing federalAmerican Rescue Plan Act funding, or other sources to facilitate redevelopment ofparcels/buildings that cannot meet City building code requirements.
· Working with community groups to help them understand that there is too muchretail land use; and provide education on viable alternatives to revitalize theseproperties.
· Continuing Business Attraction efforts with investors, site selectors, brokers andretailers.
· Exploring General Fund/Bond support for replacing aged infrastructure to supportrevitalization.
· Exploring text amendment(s) to create opportunities for additional mixed-useopportunities above what is allowed with current zoning.
· Analyzing potential updates to the zoning ordinance to address changes in marketdemand for newer service models such as cloud kitchens and retail fulfillmentcenters, for instance.
30
Agenda Date: 5/26/2021, Item No. 4
Concurrence/Previous Council ActionOn March 24, 2021, the Workforce and Economic Development Subcommitteerequested this topic be discussed at a future meeting.
Responsible DepartmentThis item is submitted by Deputy City Managers Ginger Spencer and Gina Montes,and the Community and Economic Development, Neighborhood Services, andPlanning and Development departments.
31
Workforce and Economic Development Subcommittee
Report
Agenda Date: 5/26/2021, Item No. 5
Discussion of the Government Property Lease Excise Tax Program
This report provides the Workforce and Economic Development Subcommittee withinformation regarding the City’s use of the Arizona Government Property Lease ExciseTax (GPLET) in addition to the results of a recent Downtown Residential andCommercial Absorption study.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
SummaryCreated as an economic development tool by the Arizona State Legislature in 1996 viaARS Title 42, Chapter 6, Article 5, as a successor to the state's possessory interest taxprogram, GPLET provides for an excise tax option, in lieu of property tax, based on theuse and square footage of a building rather than its value. Depending on the type andlocation of a development, the current GPLET excise tax rates can be reduced orabated for a specific period of time, which can help to close a funding gap that wouldotherwise make a development project unfinanceable. In Phoenix, the use of GPLEThas resulted in 22 projects which have created:
· Approximately 3,700 new multi-family and student housing units
· 5.2 million square feet of office space
· 900,000 square feet of retail and restaurant space
· 1,201 hotel rooms
· 679,000 square feet of higher education space
· 8,200 structured parking spaces
The GPLET program has had a significant development and economic impact onDowntown Phoenix. Approximately 17,800 new jobs with an approximately $995.5million in payroll have been created as a result of utilizing the GPLET program. Inaddition, $3.03 billion in construction capital investment with construction sales taxrevenue to Phoenix of $35.3 million, and an increased annual tax impact of $17 million.Other taxing jurisdictions have participated as well, with Maricopa County and localSchool Districts realizing a $99.2 million total tax impact, and the State of Arizonaseeing a $250.3 million impact. At the City Council's direction, GPLET has created
32
Agenda Date: 5/26/2021, Item No. 5
other community benefits such as the inclusion of workforce housing units inresidential projects, contributed to the Phoenix Affordable Housing Trust Fund, newpublic infrastructure, public open space, public parking, and the incorporation of publicart.
At the Feb. 24, 2021 Workforce and Economic Development Subcommittee meeting,the Subcommittee instructed staff to explore options to conduct a Residential andCommercial Absorption study to better understand the Downtown market’s ability toabsorb the significant amounts of new construction that has taken place over the pastfew years. On April 7, 2021, staff received City Council approval to work with RoundsConsulting Group Inc., through an existing contract with the City's HousingDepartment, as one method to analyze available data gathered. Staff also utilized anumber of other data resources to understand the market, its viability, affordability andgrowth projections. Staff will present the results of the study's findings and will seekSubcommittee's input and direction on next steps of the use of the GPLET program,including the consideration of additional public benefits associated with its use.
Concurrence/Previous Council ActionOn April 7, 2021, City Council approved to extend and allow additional expendituresunder City Contract No. 149681 with Rounds Consulting Group Inc. for a DowntownResidential and Commercial Absorption Rate study for the Community and EconomicDevelopment Department through Ordinance S-47462. The City's Workforce andEconomic Development Subcommittee provided direction for staff to move forwardwith the study at its Feb. 24, 2021 meeting.
LocationDowntown PhoenixCouncil Districts: 4, 7 and 8
Responsible DepartmentThis item is submitted by Deputy City Manager Ginger Spencer and the Communityand Economic Development Department.
