Attachment A - Nov. 1, 2022 EDE minutes.pdf

ATTACHMENT A 
Phoenix City Council 
Economic Development and Equity (EDE) Subcommittee 
Summary Minutes 
Tuesday, November 1, 2022 
City Council Chambers 
200 W. Jefferson St. 
Phoenix, Ariz. 
Subcommittee Members Present  
  Subcommittee Members Absent 
Vice Mayor Laura Pastor, Chair 
Councilwoman Ann O’Brien 
Councilwoman Debra Stark 
Councilwoman Yassamin Ansari 
CALL TO ORDER 
Councilwoman Stark called the Economic Development and Equity (EDE) 
Subcommittee to order at 10:08 a.m. with Councilwoman Ann O’Brien and 
Councilwoman Yassamin Ansari present.  
Vice Mayor Pastor joined the meeting at 10:09 a.m. 
CALL TO THE PUBLIC 
None. 
Discussion and Possible Action (ITEMS 1-2) 
1. Government Property Lease Excise Tax Policy
This item was heard out of order. 
Deputy City Manager Ginger Spencer introduced Community and Economic 
Development (CED) Director Christine Mackay and Deputy CED Director Xandon 
Keating.  
Vice Mayor Pastor opened the meeting for public comment.  
Ryan Boyd spoke in support of the Government Property Lease Excise Tax (GPLET) 
policy and affordable housing. 
Mr. Keating gave an overview of the GPLET tool.

Vice Mayor Pastor asked for clarification regarding the Central Business District (CBD) 
and Redevelopment Areas (RDA). 
Mr. Keating discussed CBD boundaries and the City’s 19 existing RDA.      
Vice Mayor Pastor asked for clarification on the Government Mall’s location. 
Mr. Keating replied the Government Mall was within the 19 RDA and the CBD.  
Vice Mayor Pastor asked if a developer within the Government Mall could apply for the 
GPLET and asked if there was a choice between doing the 25-year excise tax lease or 
eight-year abatement. 
Mr. Keating confirmed the developer would have a choice because they were located 
within the 19 RDA and the CBD. He clarified a property located in a redevelopment area 
but not the CBD would only be eligible for the 25-year excise tax lease, not the eight-
year abatement. 
Vice Mayor Pastor asked what the benefit was of being in the CBD.  
Mr. Keating replied a developer in the CBD would get to choose whether the eight-year 
abetment or 25-year excise tax lease would be more beneficial.   
Ms. Mackay added some developers may prefer to get the benefit upfront during the 
start-up phase.  
Councilwoman O’Brien asked who made the determination for CBD to have more 
options than RDA. 
Ms. Mackay responded the determination was made by State statute and voted on by 
the State Legislature.   
Councilwoman Stark asked for clarification on RDA, such as Sky Harbor, that have a 
portion in the CBD.   
Mr. Keating responded the Sky Harbor RDA was not part of the CBD and a more 
accurate map could be provided in the future.  
Ms. Spencer asked staff to clarify what the shaded, striped areas on the map 
represented.  
Mr. Keating responded the shaded, striped areas were the new boundaries of the non-
CBD downtown RDA.   
Vice Mayor Pastor asked if the Government Mall was part of the CBD. 
Mr. Keating confirmed the Government Mall was part of the CBD.

Vice Mayor Pastor asked how many miles was the CBD.  
Ms. Mackay replied the CBD was 1.6 square miles.   
Vice Mayor Pastor asked if the CBD could be expanded up to 12 miles.  
Ms. Mackay responded by State statute, 10 percent of the City could be within the CBD, 
which would be equal to 12 square miles for Phoenix.  
Vice Mayor Pastor asked if the City could expand the CBD. 
Mr. Keating replied the CBD boundaries could be modified at the direction of the 
Council. 
Vice Mayor Pastor asked how and where Phoenix could expand the CBD.  
Ms. Mackay responded a report could be prepared to explore expanding the CBD and 
commented on requirements for declaring a RDA according to Federal law.  
Vice Mayor Pastor asked what direction the CBD could be expanded.    
Ms. Mackay replied there could be potential to the West, South and East and noted a 
map could be brought back to the EDE Subcommittee for consideration.  
Vice Mayor Pastor said it would be helpful to consider a CBD expansion. 
Councilwoman Stark expressed support for discussing CBD expansion.   
Ms. Mackay responded in addition to CBD expansion, CED staff could also research 
opportunities for expansion of RDA.  
Councilwoman O’Brien expressed support for the CBD and RDA expansions. 
Ms. Mackay gave a presentation on the GPLET policy direction including types of 
projects and public benefits related to the CBD and RDA.  
 
Vice Mayor Pastor asked what pedestrian-friendly meant.  
 
Ms. Mackay described characteristics of pedestrian-friendly spaces including 
walkability, protection from major arterial streets and wider sidewalks.  
Vice Mayor Pastor expressed concern about pedestrian-friendly zoning codes and 
ordinances. 
 
Ms. Mackay responded from a GPLET development agreement standpoint, the Council 
could define what they wanted and that would be incorporated as part of the 
development agreement.

Ms. Mackay continued her presentation on the GPLET policy direction from Council 
interviews.  
 
Vice Mayor Pastor asked how the Council could be informed about and involved with 
developments early on.    
 
Ms. Mackay replied as part of the GPLET policy, staff could be required to meet 
internally with the Council before an initial meeting was held with the developer. 
 
Ms. Mackay continued her presentation with a discussion on preferred projects based 
on direction from the EDE Subcommittee.  
 
Vice Mayor Pastor asked if the 20 percent minimum requirement for affordable or 
workforce housing could also include a maximum.   
 
Mr. Mackay replied putting a cap of on the percentage of affordable or workforce 
housing would not be recommended.  
 
Ms. Spencer added the 20 percent minimum requirement would allow for flexibility to go 
higher. 
 
Vice Mayor Pastor asked for an update on industry standards and if it would make 
sense to increase the minimum 20 percent affordable or workforce housing 
requirement.  
 
Ms. Mackay replied staff could be supportive of a 25 percent minimum. 
 
Ms. Spencer asked for clarification on the average minimum standard. 
 
Ms. Mackay responded the minimum standard differed across the City but the average 
across the industry was 10 percent workforce housing.  
  
Councilwoman O’Brien asked if increasing the minimum percentage would discourage 
development.   
 
Ms. Mackay recommended a 20 percent policy with an adjustment every year based on 
industry standards for a gradual increase.  
 
Councilwoman O’Brien expressed support for Ms. Mackay’s proposed recommendation.  
 
Ms. Mackay continued her presentation on preferred projects, including a discussion on 
affordable and workforce housing. 
 
Vice Mayor Pastor asked about federal government housing categories.

Ms. Mackay responded with an overview of housing categories based on area median 
income.  
 
Vice Mayor Pastor emphasized the need for true affordable housing in addition to 
workforce housing. 
 
Housing Director Titus Mathew replied the City focused on affordable housing because 
workforce housing occurred naturally in the marketplace and federal resources were not 
available to build workforce housing.  
 
Ms. Mackay asked if Vice Mayor Pastor would like the GPLET policy to be updated so 
developers could accept Section 8 Housing Vouchers as part of the program.  
 
Vice Mayor Pastor expressed support for mixed-use development including affordable, 
workforce and marketplace housing with an understanding that some areas have a 
greater need for affordable housing.  
 
Mr. Mathew suggested the Councilmembers could help direct if the GPLET funds would 
be used for affordable or workforce housing in their district.  
 
Councilwoman O’Brien asked if there would ever be a scenario where marketplace, 
workforce and affordable housing existed in the same building.  
 
Mr. Mathew discussed the City’s Soluna property which includes market rate, Section 8 
and low-income housing tax credit units.  
 
Councilwoman O’Brien asked if the GPLET policy language would allow Council to work 
with developers to achieve diverse housing. 
 
Ms. Mackay replied the GPLET policy language would allow Council to work with 
developers to increase diversity in housing.  
 
Councilwoman Ansari asked for clarification on the GPLET funds and if they had to be 
used in a specific district or anywhere in the City.  
 
Ms. Mackay responded Councilwoman Ansari’s question would be for the EDE 
Subcommittee to determine and suggested a citywide fund. 
 
Ms. Mackay continued her presentation on preferred projects including a discussion on 
the activated ground-floor experience.  
 
Councilwoman Stark expressed support for the GPLET policy. 
 
Councilwoman O’Brien expressed support for the GPLET policy.

Vice Mayor Pastor expressed concern about losing the rental tax fee in the future.   
 
Ms. Mackay responded there could be more revenue coming to the City than before 
with the redeveloped properties.  
 
Councilwoman O’Brien asked for clarification. 
 
Ms. Mackay replied property taxes were determined by the valuation of the property and 
redeveloped properties would have a higher valuation. Those developments would 
immediately start paying the excise tax updated by the producer price index on an 
annual basis.   
 
Vice Mayor Pastor asked what kind of motion was needed. 
 
Ms. Mackay recommended the EDE Subcommittee move the GPLET policy to the fall 
City Council for consideration.  
 
Vice Mayor Pastor made a motion to approve the item. Councilwoman O’Brien 
seconded the motion which passed unanimously, 4-0. 
2. Fiscal Year 2022-23 Bioscience Healthcare Strategic Initiative  
 
This item was heard out of order. 
Bioscience and Healthcare Program Manager Claudia Whitehead gave a presentation 
recommending the Council approve to implement the Fiscal Year (FY) 2022-23 
Bioscience Healthcare Strategic Initiative, including authorization of an Arizona 
Bioindustry Association (AZBio) membership and participation at the annual 
Biotechnology Innovation Organization (BIO) International Convention in 2023.  
Ms. Mackay requested the EDE Subcommittee recommend approval to accept funds 
from the City's BIO International Convention partners to offset convention expenses. 
She stated funding for the AZBio membership and convention efforts would not exceed 
$105,000 with no impact to the General Fund. 
Vice Mayor Pastor said she would like to see more diversity of the Council voice at the 
conferences. 
Ms. Mackay agreed and replied staff would incorporate extending the Council invitation 
moving forward.  
Councilwoman O’Brien asked about potential prospects from the convention and if one 
of the prospects chose Phoenix, how that would impact the City’s economy.

Ms. Whitehead responded if a prospect chose Phoenix, it would help establish Phoenix 
as a leading City in the biosciences, advance treatments for the public, create quality 
jobs and attract other companies.  
Ms. Mackay added the Bristol Meyers Squibb expansion had a capital investment of 
$550 million, showcasing the significant capital investment bioscience companies make 
in the market.  
Councilwoman O’Brien made a motion to approve the item. Councilwoman Stark 
seconded the motion which passed unanimously, 4-0. 
CALL TO THE PUBLIC  
None. 
 
FUTURE AGENDA ITEMS 
Councilwoman Stark requested a briefing after the Super Bowl. 
 
Vice Mayor Pastor asked to invite Valley Metro staff to the December EDE meeting 
regarding Super Bowl security and transportation.   
 
ADJOURNMENT 
Vice Mayor Pastor adjourned the meeting at 11:36 a.m.  
 
Respectfully submitted, 
 
Danielle Vermeer 
Management Intern