Attachment A - Oct. 26, 2022 EDE minutes.pdf

ATTACHMENT A 
 
Phoenix City Council 
Economic Development and Equity (EDE) Subcommittee 
Summary Minutes 
Wednesday, Oct. 26, 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 
Vice Mayor Pastor called the Economic Development and Equity Subcommittee to order 
at 10:05 a.m. with Councilwoman Ann O’Brien, Councilwoman Debra Stark and 
Councilwoman Yassamin Ansari present.  
CALL TO THE PUBLIC 
None. 
MINUTES OF MEETINGS 
1. Minutes of the Economic Development and Equity Subcommittee Meeting 
Councilwoman Stark made a motion to approve the minutes of the Sept. 28, 2022, 
Economic Development and Equity Subcommittee meeting. Councilwoman Ansari 
seconded the motion which passed unanimously, 4-0. 
CONSENT ACTION (ITEMS 2-3)  
Items 2-3 were for consent action. No presentations were planned, but staff were 
available to answer questions. 
2. Authorization to Enter into an Agreement for FY 2022-23 Tourism and 
Hospitality Advisory Board (THAB) Funds 
3. Request to Pay Annual Membership Fee for The Connective, a Smart Cities 
Initiative of the Partnership for Economic Innovation (PEI) 
Councilwoman Stark made a motion to approve Consent Action Items 2-3. 
Councilwoman Ansari seconded the motion which passed unanimously, 4-0.

INFORMATION ONLY (ITEM 4)  
4. HOME-ARP Allocation Plan and 2020-24 Consolidated Plan's 2021-22 Annual 
Action Plan Substantial Amendment 
Item number 4 was for information only. No Councilmember requested additional 
information. 
Vice Mayor Pastor requested the presentation on Government Property Lease Excise 
Tax be heard as the sixth item and the Phoenix Convention Center Market Feasibility 
Study Update as the fifth item. 
INFORMATION AND DISCUSSION (ITEMS 5-6)  
5. Discussion of the Government Property Lease Excise Tax (GPLET) 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.  
 
Mr. Keating gave a report on the proposed GPLET program which would provide an 
excise tax option, in lieu of property tax, based on the use and square footage of a 
building rather than its value. 
 
Vice Mayor Pastor asked how many redevelopment areas could there be.  
 
Mr. Keating replied the number of redevelopment areas was unlimited by State law but 
depended on qualifications such as percentage of properties with blight elements.  
 
Ms. Mackay added a city could only have one Central Business District (CBD) and it 
must be in the redevelopment area to receive the property tax abatement. 
 
Vice Mayor Pastor asked where the CBD was located.  
 
Ms. Mackay clarified the location of the CBD in downtown Phoenix. 
   
Vice Mayor Pastor asked how to change the CBD.  
 
Ms. Mackay replied changing the CBD would involve a study with Council participation.  
 
Mr. Keating continued the presentation and commented on requirements to qualify for a 
GPLET. 
 
Ms. Mackay discussed the CBD, non-CBD and Council direction to determine areas of 
importance for the GPLET tool.

Vice Mayor Pastor and Councilwoman Stark asked for clarification regarding the CBD 
financial contributions.  
 
Ms. Mackay explained various scenarios and how financial contributions may differ 
between CBD, non-CBD, types of development and potential use.  
 
Vice Mayor Pastor voiced concerns about the GPLET logistics and the need for 
immediate affordable and workforce housing.  
 
Ms. Mackay suggested a proposal could be brought back for future consideration such 
as allowing developers to choose between contributing to the Affordable Housing Trust 
or providing 20% affordable or workforce housing.   
 
Ms. Mackay presented considerations for development such as historic preservation, 
climate and heat readiness, public open space, public parking, affordable and workforce 
housing, urban retail, density, office space and the entertainment district.  
 
Vice Mayor Pastor asked for clarification on what constitutes as office space. 
 
Ms. Mackay responded because of the pandemic there was about 13 million square feet 
of office market in downtown and the current vacancy rate was 12 to 13 percent.  
 
Vice Mayor Pastor asked how bottom floor urban retail could be developed as activated 
public space, not exclusive spaces such as residential gyms.    
 
Ms. Mackay replied if the Council moved forward with the GPLET policy, one of the 
items in the policy could use intentional language to describe activated open spaces 
such as commercial retail and restaurants that must follow public park hours of 
operation.   
 
Vice Mayor Pastor asked if Ms. Mackay was referring to parks when talking about public 
open space.  
 
Ms. Mackay used Patriot Park, located in Cityscape and owned by the City, as an 
example. Even though Patriot Park is managed by Red Development, changes must be 
approved by the Parks and Recreation Board. Ms. Mackay said a similar approach 
could be applied to GPLET where changes would need to be approved by the Council.  
 
Vice Mayor Pastor expressed concerns about not everyone benefiting from open space.  
 
Ms. Mackay replied the policy could go further to ensure developments market their 
spaces as open space and said she could return with policy language for consideration.

Councilwoman Stark asked if a definition of open space could be refined for working 
with the development community and discussed positive comments about a private park 
maintained by several developments in Houston, Texas.  
 
Ms. Mackay discussed potential for public access easements.   
 
Ms. Mackay presented on alternative public benefit options such as a financial 
contribution to the Affordable Housing Trust Fund and creation of a new fund for 
additional public benefits.  
 
Councilwoman Stark expressed support for immediate affordable and workforce 
housing need.  
 
Ms. Mackay responded a policy could be brought back ensuring there would be two 
options to either make a financial contribution or provide 20 percent or greater 
workforce or affordable housing. 
 
Vice Mayor Pastor expressed concern that developers may choose the financial 
contribution option rather than ensuring affordable or workforce housing if given two 
choices. She noted the item would be brought back after research on the options has 
been conducted. 
 
Vice Mayor Pastor opened the meeting for public comment.  
 
Nick Wood expressed support for workforce and affordable housing. 
DISCUSSION AND POSSIBLE ACTION (ITEM 6)  
6. Phoenix Convention Center Market Feasibility Study Update 
This item was heard out of order. 
 
Phoenix Convention Center (PCC) Director John Chan, Deputy Convention Center 
Director Jerry Harper and Convention, Sports & Leisure Partner John Kaatz gave an 
update on the Market Feasibility Study for the PCC and surrounding hospitality assets. 
The presentation included a discussion on COVID-19 impacts, post-COVID convention 
industry trends, competitive landscape and guiding principles for Phoenix convention 
industry future.  
 
Councilwoman Stark asked how close hotels should be from the convention center.   
 
Mr. Kaatz replied there should be a large hotel across the street from the convention 
center with at least 800 rooms and smaller hotels sprinkled within a half mile. 
 
Councilwoman Stark asked about potential partnerships with the Arizona 
Diamondbacks and Phoenix Suns teams to attract larger conventions.

Mr. Kaatz responded the arena spaces could be used for events with large attendance 
and discussed a vision for a district encompassing many venues and restaurants.  
 
Vice Mayor Pastor asked about different structures such as public-private partnerships.  
 
Mr. Chan replied different structures such as public-private partnerships could be looked 
into for the future.  
 
Mr. Kaatz added public-private partnerships were on target for the PCC. 
 
Vice Mayor Pastor highlighted Nashville, Tennessee for its incorporation of historic and 
modern buildings. She also commented on Nashville’s diversity of food and 
entertainment and discussed connectivity in Washington, D.C.  
 
Mr. Kaatz responded with support for unique, authentic and diverse markets. 
 
Vice Mayor Pastor praised Roosevelt Row and suggested it could be a model for the 
downtown entertainment district.    
 
Councilwoman Ansari commented on 24/7 walkability and echoed positive comments 
for Roosevelt Row. She also asked how to fund a downtown circulator bus to connect 
vibrant areas such as Roosevelt Row to the convention center and requested 
information on large-scale hotels.  
 
President and Chief Executive Officer (CEO) of Visit Phoenix Ron Price replied with a 
discussion on how to move people around downtown and spoke about hotel updates 
including support for another large hotel with at least 800,000 rooms.  
 
Vice Mayor Pastor commented on research regarding a downtown circulator bus, 
funding challenges and potential creative solutions to run the circulator for one year.  
 
Mr. Chan replied factors such as downtown walkability and heat mitigation should also 
be considered. 
 
Vice Mayor Pastor clarified the agenda item’s recommendation.  
 
Mr. Chan replied the item was for discussion and possible action and provided a 
summary of recommendations from the presentation.  
 
Vice Mayor Pastor asked Mr. Chan if a motion to proceed with the entertainment district 
planning effort was appropriate.  
 
Mr. Chan responded with support for the motion and summarized details to select a 
consulting firm.

Vice Mayor asked for guidance ranking the proposed recommendations. 
 
Mr. Chan suggested to prioritize the entertainment district planning effort and proposed 
the other two recommendations regarding PCC facilities and increasing convention 
hotel room inventory be used as benchmarks for future planning.  
 
Councilwoman Ansari made a motion to approve the item and Councilwoman Stark 
seconded the motion, which passed unanimously, 4-0. 
CALL TO THE PUBLIC  
None. 
 
FUTURE AGENDA ITEMS 
None. 
 
ADJOURNMENT 
Vice Mayor Pastor adjourned the meeting at 11:23 a.m. 
 
Respectfully submitted, 
 
Danielle Vermeer 
Management Intern