Summary Sheet- RFCA SUMMARY

CITY OF TEMPE
Meeting Date: 6/4/2026  
REQUEST FOR COUNCIL ACTION
Agenda Item: 8B3
ACTION:  PUBLIC HEARING ITEM Introduce and hold the first public hearing to adopt an ordinance 
authorizing the transfer and/or abandonment of various property interests and authorizing the City 
Manager to execute an amended Development Agreement and additional documents associated with 
1st & Farmer, LLC and the project located at 1st Street and Farmer Avenue, and authorizing the waiver 
of any reversionary considerations with respect to Zoning and Development Case No. DS230661 / 
PL230127 / ZON230008 / PAD230010. The second and final public hearing is scheduled for June 11, 
2026. (Ordinance No. O2026.30)
FISCAL IMPACT:  No fiscal impact.
RECOMMENDATION:  Adopt Ordinance No. O2026.30.
 
BACKGROUND INFORMATION:  On July 28, 2023, the City and 1st & Farmer, LLC (the 
“Developer”) entered into a Development and Disposition Agreement (“DDA”) related to the disposition 
of a combination of City and Developer-owned real property and development of up to eight parcels 
located at 1st Street and Farmer Avenue. As described in the DDA, Developer intends to redevelop the 
property as a mixed-use project (the “Project”), which will also include the construction of a new 
pedestrian pathway, as well as the rehabilitation and historic preservation of the Gonzales-Martinez 
House. 
Developer states that it has incurred $109,590 to perform some of the work toward stabilization of the 
Gonzales-Martinez House, including deconstructing outlying buildings, mothballing, and demolishing 
non-historic elements. Despite the work already completed, the Gonzales-Martinez House remains in 
poor, neglected and dilapidated condition. As such, City and Developer desire to amend and update the 
DDA in order to move forward with the immediate actions needed to address the condition and 
stabilization of the Gonzales-Martinez House and to work toward a preservation plan. 
The original DDA entered between the parties left a number of items to future discussion and 
contemplates that further amendments would be necessary. Appraisals of various property interests 
have been obtained and the parties have been able to refine a new Schedule 2.10 which reflects a fair 
exchange of value for the property interests and the commitments of the DDA. Therefore, in order to 
accelerate needed stabilization and preservation of the Gonzales-Martinez House, the amended DDA 
is proposed for Council consideration.  
After the City’s conveyance of Parcel 1, Developer has agreed to complete the improvements to the 
Gonzales-Martinez House, as set forth in the Stabilization Plans and as approved by the Community 
Development Department. Due to the significance of the Gonzales-Martinez House, the City’s Historic 
Preservation Office has agreed to initially contribute up to $207,000 towards the Stabilization of the 
Gonzales-Martinez House. Any additional costs incurred by the Developer to perform the Stabilization 
shall be credited against the Purchase Price as part of the Rehabilitation Credit. Developer agrees to 
submit for permits for the construction of the Stabilization on or before 30 days after City’s conveyance 
of Parcel 1, and construction of the Stabilization must commence on or before 150 days following the 
City’s issuance of such permits. Following completion of the initial stabilization by the Developer,

2
Developer agrees to perform the remaining rehabilitation to the Gonzales-Martinez House, as described 
in the DDA, including the preparation of Rehabilitation Plans in accordance with the Secretary of the 
Interior’s Standards for Rehabilitation and as approved by the Community Development Department. 
The rehabilitation phase of the Project must commence following the City’s conveyance of Parcel 1, and 
City’s approval of the Development Plan Review for the Project and upon issuance of all applicable 
permits for the rehabilitation. 
This Request for Council Action also includes a request to authorize the waiver of any reversionary 
considerations with respect to the previously approved zoning for the Project (DS230661 / PL230127 / 
ZON230008 / PAD230010). On September 28, 2023, City Council approved a Zoning Map Amendment 
to change the zoning designation of the property from “General Industrial District” (GID) to “Mixed-Use 
High Density” (MU-4) with a “Planned Area Overlay” (PAD) (O2023.44). Due to changing market 
conditions and the complexity associated with the redevelopment of the property, the timeframe to 
complete the Project is unknown. City staff support Council granting this waiver as they believe that the 
current zoning designation of mixed-use is appropriate and it would not be in the City’s best interest to 
have the zoning reverted.
ATTACHMENTS:    
1. ORDINANCE O2026.30.DOCX
STAFF CONTACT(S):  Taylor Moran, Economic Development Program Manager, 480-973-4871; Lisa 
Hausz, Interim Deputy Economic Development Director, 602-539-0259
Department Director:  Jeff Tamulevich, Community Development Director  
Legal review by:  Eric Anderson, City Attorney
Prepared by:  Taylor Moran, Economic Development Program Manager