Summary Sheet- RFCA SUMMARY

CITY OF TEMPE
Meeting Date: 1/4/2024  
REQUEST FOR COUNCIL ACTION
Agenda Item: 8B1
ACTION:  PUBLIC HEARING ITEM Introduce and hold the first public hearing to adopt an ordinance 
to authorize the conveyance of approximately 3.146 acres of City-owned property within Danelle Plaza, 
located on the southwest corner of Southern Avenue and Mill Avenue.  The second and final public 
hearing is scheduled for January 18, 2024. (Ordinance No. O2024.03)
FISCAL IMPACT:  The purchase price of the City-owned property is Two Million Seven Hundred Fifty 
Thousand Dollars ($2,750,000) which is the fair market value for the City property based on appraisal.  
The purchase price shall be paid by Developers in accordance with the terms of the Master Development 
and Disposition Agreement between the parties (C2023-327).
RECOMMENDATION:  Adopt Ordinance No. O2024.03.
 
BACKGROUND INFORMATION:  On August 24, 2022, the City issued a Request for Qualifications 
(RFQ) for the development and disposition of City-owned property at Danelle Plaza. On September 22, 
2022, Council awarded the RFQ to Guina Affiliated Developers, LLC and Desert Viking-Danelle Plaza 
(collectively, “Developers”) and authorized staff to negotiate terms of a development agreement with 
Developers.  Collectively, the City and Developers own the majority of parcels within Danelle Plaza, 
which is currently governed by a declaration of easements, covenants, restrictions, liens, and charges 
under the Arizona Condominium Act (A.R.S. § 33-1201, et seq.) (the “Declaration”).  
On September 7, 2023, Council passed a Resolution authorizing the City Manager to sign a 
development agreement with Developers.  The parties subsequently agreed to and executed a Master 
Development and Disposition Agreement (the “Development Agreement”) on November 29, 2023.  The 
Development Agreement laid out a phased approach for addressing certain challenges with 
redeveloping the site and also required the parties to establish a purchase price for the City property 
based on appraisal.  
The first phase of the project is the assembly phase, wherein the parties have agreed to joint efforts to 
assemble properties within Danelle Plaza and to address hurdles to redevelopment of the site created 
by the Declaration.  Following the completion of the first phase, the parties will enter the second phase 
of the project, which is the transfer of the City property to Developers.  The Development Agreement 
sets certain conditions precedent to the conveyance of the City property to the Developers, including 
passage of an Ordinance authorizing the conveyance by the City Council. 
If passed, Ordinance No. O2024.03 would approve conveyance of the City property for the purchase 
price of Two Million Seven Hundred Fifty Thousand Dollars ($2,750,000), which is the fair market value 
of the property according to an appraisal obtained by the City.  Further, it would authorize the City 
Manager to sign all documents necessary to complete the conveyance if she, in her reasonable 
discretion, determines that the conditions precedent to the conveyance contained in the Development 
Agreement have been met.  Should the conditions precedent not be met, or the Development Agreement 
be terminated prior to the conveyance, the Ordinance will be null and void and the property transfer will 
not occur.

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ATTACHMENTS:  DANELLE PLAZA ORDINANCE DRAFT FINAL.DOCX
STAFF CONTACT(S):  Joshua Rutherford, Economic Develop Special Project Admin, 480-350-8813
Department Director:  Mike DiDomenico, Economic Development Director  
Legal review by:  Sam Arrowsmith, Assistant City Attorney
Prepared by:  Joshua Rutherford, Economic Develop Special Project Admin