EDE Minutes Final.pdf

Phoenix City Council 
Economic Development and Equity Subcommittee 
Summary Minutes 
Wednesday, May 25, 2022 
City Council Chambers 
200 W. Jefferson St. 
Phoenix, Ariz. 
Subcommittee Members Present 
 Subcommittee Members Absent 
Vice Mayor Laura Pastor, Chair 
Councilwoman Yassamin Ansari    
Councilwoman Ann O’Brien 
Councilwoman Debra Stark 
CALL TO ORDER 
Vice Mayor Pastor called the Economic Development and Equity Subcommittee to order 
at 9:04 a.m. with Councilwoman Ansari, Councilwoman O’Brien, and Councilwoman 
Stark present. 
CALL TO THE PUBLIC 
MINUTES OF MEETINGS 
1. Minutes of the Economic Development and Equity Subcommittee Meeting
Councilwoman Stark made a motion to approve the minutes of April 27, 2022 Economic
Development and Equity Subcommittee meeting. Councilwoman O’Brien seconded the
motion, which passed unanimously 4-0.
CONSENT ACTION (ITEM 2) 
2. Authorization to Enter into a Development Agreement with IDM Companies for
Reimbursement of Public Infrastructure Improvements
Councilwoman Ansari made a motion to approve all consent items. Councilwoman
Stark seconded the motion, which passed unanimously 4-0.
INFORMATION ONLY (ITEM 3) 
3. Key Phoenix Economic Indicators Quarterly Report
Attachment A

DISCUSSION AND POSSIBLE ACTION (ITEM 4-5)  
4. Amendment to the Intergovernmental Agreement and Master Lease between 
the City of Phoenix and Arizona State University 
Community and Economic Development Director Christine Mackay and Deputy Director 
Xandon Keating gave a staff presentation regarding an amendment to the 
intergovernmental agreement (IGA) and master lease between the City of Phoenix and 
Arizona State University (ASU).  
Mr. Keating provided background of the 2005 IGA and 2006 lease agreement between 
the City and ASU. He discussed several ASU-owned buildings such as Taylor Place, 
the University Center, and the Cronkite School of Journalism and stated this agreement 
helped bring over 18,000 students to the Downtown ASU campus. Mr. Keating 
highlighted the ASU-owned Mercado Property at 541 E. Van Buren St. and spoke about 
the importance this property had to the biomedical campus in the Downtown Phoenix 
area. He noted the 2005 IGA stipulated the property would be designated to the City in 
2014. Mr. Keating also spoke about the 2005 operating agreement between the City 
and the Valley Youth Theatre building and how the 2006 master lease impacted the 
building. He discussed the proposed business terms, which include allowing ASU to 
continue to operate the Mercado site, to remove the McKinley lots from the ASU lease, 
and to extend the development deadline for the ASU Valley Youth Theatre to January 5, 
2030. 
Ms. Mackay requested the Economic Development and Equity Subcommittee 
recommend City Council authorization to amend the Intergovernmental Agreement and 
Master Lease between the City and Arizona State University.  
Councilwoman Ansari asked how quickly staff would be able to release a request for 
proposal (RFP) for affordable housing development of the McKinley parking lots. She 
asked what staff needed from Council to create an affordable housing option for the 
parking lot site.  
Ms. Mackay replied staff could work through the summer and return to Council in the fall 
to make a recommendation and to issue a RFP. 
Vice Mayor Pastor asked staff why they would issue an RFP rather than lease the 
property. 
Ms. Mackay replied staff could present a long-term land lease option, so the City could 
retain the land site as a land partner and allow a developer to develop the land.  
Vice Mayor Pastor asked staff to explain the removal of the McKinley lot site plan from 
the IGA master lease agreement.

Ms. Mackay replied staff would recommend the separation of the McKinley lots from the 
2005 and 2006 master lease agreement. She noted ASU would no longer have rights to 
the property, and the Council could decide how to develop the land. 
Vice Mayor Pastor reiterated that the McKinley property would be removed from the 
master lease and the Council could decide how to develop the land.  
Ms. Mackay replied that was correct.  
Vice Mayor Pastor asked why the Mercado site wasn’t being transferred.  
Ms. Mackay replied that the property was independently-owned by ASU and noted staff 
would allow ASU to continue to grow on that property and become more of the 
healthcare core in Phoenix. She stated ASU would retain the development rights to the 
Mercado property indefinitely, whereas the McKinley site could be developed by the 
City.  
Vice Mayor Pastor stated she thought the Mercado site would be worth more than the 
McKinley property due to the square footage. She asked staff to discuss why the 
agreement was for the McKinley lots and not the Mercado site.  
Ms. Mackay noted the Mercado site was larger than the McKinley site, but the McKinley 
site was unencumbered and the City could develop the land in a number of ways. She 
said the Mercado buildings land could only be developed for specific purposes related 
to education and healthcare.  
Councilwoman Ansari moved to approve staff recommendation. Councilwoman O’Brien 
seconded the motion, which passed unanimously 4-0. 
5. Downtown Redevelopment Tools Update 
Community and Economic Development Director Christine Mackay, Deputy Director 
Xandon Keating, Government Relations Manager Lauren Armour, and Assistant City 
Attorney Thomas Stack gave a staff presentation regarding Downtown Phoenix 
economic development tools.    
Ms. Armour gave a brief overview of a theme park district, which includes recreational 
entertainment like sports facilities and buildings, or improvements used for lodging for 
theme park patrons. She noted the State Legislature passed theme park district 
legislation to authorize new districts and authorizes the districts to issue up to $2 billion 
in bonds. Ms. Armour stated the theme park district would have to be an agreement 
between the Phoenix City Council and the Maricopa County Board of Supervisors 
(BOS). She stated the theme park district governing board would include members from 
the Phoenix Council, Maricopa County BOS, and members of the general public from 
two rural counties.

Councilwoman Stark asked if the theme park district was specific to Maricopa County. 
Ms. Armour replied the Councilwoman was correct, and the City would need to partner 
with Maricopa County to form a district.  
Councilwoman Stark asked if the theme park rules would apply to any other county.  
Ms. Armour replied no.  
Councilwoman Stark noted this legislation would apply to the Arizona Diamondbacks 
sports facility. She asked why other county representatives would sit on the theme park 
district governing board.  
Ms. Armour replied the Legislature kept the prior legislation language from 2005 related 
to theme park districts in the current legislation. She noted the Legislature focused on 
having rural input in more developed areas.  
Vice Mayor Pastor asked Councilwoman Stark to clarify how this legislation would 
impact the Arizona Diamondbacks sports facility. 
Ms. Armour stated there had been discussions among legislators to utilize this 
legislation for the Arizona Diamondbacks sports facility. 
Councilwoman Stark discussed her time on the theme parks district and how it related 
to creating a district for the Arizona Diamondbacks facility.  
Vice Mayor Pastor asked if the theme park district could only apply to the Arizona 
Diamondbacks sports facility. 
Ms. Armour replied the legislation could apply to any sports facility and was not limited 
to the Arizona Diamondbacks.  
Mr. Keating continued with presentation describing an entertainment district as 
containing a number of entertainment venues which can be officially designated by local 
governments. He spoke about the Jackson Street entertainment district created by the 
City in 2009, the 2011 Legends entertainment district, and the 2016 Downtown Phoenix 
entertainment district. Mr. Keating discussed other entertainment districts in other states 
such as the Gaslamp Quarter in San Diego, California. 
Vice Mayor Pastor asked if the entertainment district had a tax.  
Ms. Mackay stated there was no tax for the entertainment districts. She noted 
entertainment districts were a marketing tool that connects an area. She stated hotels 
pay an enhanced tax, which already exists in the Downtown Phoenix area.  
Vice Mayor Pastor asked staff to describe the additional hotel tax.

Ms. Mackay replied hotels in other areas had a visitor tax and noted the Downtown 
Phoenix hotel tax was related to Proposition 301, a tax that utilized funds for 
entertainment district marketing efforts. She stated hotels in the Downtown Phoenix 
area would not have any additional tax related to the entertainment district. 
Vice Mayor Pastor asked if the theme park district had an additional tax. 
Ms. Mackay replied the board of a theme park district had the option to sell up to $2 
billion in bonds to create a theme park. She noted the theme district board could also 
impose a 9% tax within that district to satisfy the bonds.  
Vice Mayor Pastor asked staff if the theme park legislation language had a physical 
boundary of the district.  
Ms. Mackay replied the Council could set a physical boundary for the theme park district 
at a Formal Council meeting. 
Vice Mayor Pastor asked if the entertainment district could be overlayed with the theme 
park district.  
Ms. Mackay replied that was correct.  
Councilwoman Ansari asked if the staff recommendation was to expand a boundary of 
an entertainment district boundary created by the City in 2016. 
Ms. Mackay replied the entertainment district created in 2016 was in response to a 
request by Roosevelt Row business owners asking to create the district for liquor 
license purposes. Staff would ensure the proposed entertainment district would overlap 
with the entertainment district created in 2016. 
Councilwoman Ansari asked staff to clarify the marketing process for the new 
entertainment district. 
Ms. Mackay replied this would be an overall effort for the Downtown Phoenix area. She 
stated staff would conduct outreach to stakeholders to create a linear entertainment 
district connecting Downtown Phoenix.  
Vice Mayor Pastor stated community members, staff, and the Council would develop 
the process over the next several months to determine the look and feel of the 
entertainment district.  
CALL TO THE PUBLIC  
No call to the public 
 
FUTURE AGENDA ITEMS 
Diversity, Equity, and Inclusion Update, Downtown Phoenix Economic Tools, and the 
Convention Sports and Leisure Market Study.

ADJOURNMENT 
Vice Mayor Pastor adjourned the meeting at 11:28 a.m. 
 
Respectfully submitted, 
 
Cooper Payne 
Management Intern