Attachment A - Sept. 23, 2020 WED Minutes

Attachment A 
Phoenix City Council 
Workforce and Economic Development Subcommittee 
Summary Minutes 
Wednesday, September 23, 2020 
City Council Chambers  
200 West Washington Street 
Phoenix, Arizona 
Subcommittee Members Present                    Subcommittee Members Absent 
Councilwoman Pastor, Chair 
Councilman Waring          
Councilwoman Stark 
Councilman Nowakowski 
 
Call to Order 
Chairwoman Pastor called the Workforce and Economic Development Subcommittee 
meeting to order at 10:00 a.m. with Councilman Waring, Councilwoman Stark and 
Councilman Nowakowski present. 
Call to the Public 
None. 
1. For Approval or Correction, the Minutes of the Workforce and Economic 
Development Subcommittee meeting on Jan. 22, 2020 
Councilwoman Stark made a motion to approve the minutes of the Jan. 22, 2020 
Workforce and Economic Development Subcommittee. Councilman Nowakowski 
seconded the motion which passed unanimously, 4-0.  
Items 2-3 were for consent action. No presentations were planned but staff was 
available to answer questions. Councilman Nowakowski made a motion to approve 
consent items 2-3. Councilwoman Stark seconded the motion which passed, 3-1. 
 
2. WESTMARC Membership Dues 
 
3. 2021 Downtown Enhanced Municipal Services District Work Plan and Budget 
 
4. Key Phoenix Economic Indicators Quarterly Report  
This item was for information only. No councilmembers had questions. 
 
5. Fiscal Year 2020-2021 Bioscience Healthcare Strategic Initiative 
Community and Economic Development Director Chris Mackay provided an overview of 
the item and introduced fellow presenter Program Manager Claudia Whitehead.

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Ms. Mackay stated the Bioscience Healthcare Strategic Initiative focused on research, 
the creation of 7,000 jobs, precision medicine, healthcare delivery, education and 
branding. She stated the 2020 BIO International Conference resulted in over 225,000 
email and web interactions, over 200 meetings with delegates, 62 delegation 
opportunities for investors and four new prospects for Phoenix. 
 
Ms. Mackay shared that the City of Phoenix’s participation in the conference focused on 
the Phoenix Bioscience Story and was recently featured in the Arizona Business 
Magazine. Ms. Mackay then shared that companies are investing billions in Phoenix’s 
bioscience and healthcare industries. This investment includes 4.5 million square feet of 
development, over $3 billion in capital investment and the creation of over 7,000 new 
jobs. 
 
Ms. Mackay requested approval of $90,000 to attend BIO International Convention in 
June 2021. She stated this allocation would fund the City’s participation in the 
Convention Ms. Mackay also requested approval of $15,500 to support participation 
with the Arizona Bioindustry Association. 
 
Ms. Mackay concluded her presentation by requesting the Subcommittee recommend 
City Council approval to implement the Bioscience Healthcare Initiative, including 
authorization of an Arizona Bioindustry Association membership and participation at the 
BIO International Convention in 2021, for a total allocation of $115,000. 
 
Councilman Nowakowski made a motion to approve staff’s recommendation. 
Councilwoman Stark seconded the motion which passed, 3-0. 
 
 
6. Agreements with Hubbard Street Group for Development of Property Located 
at 6th and Garfield Streets in Downtown Phoenix 
Community and Economic Development Director Chris Mackay provided an overview of 
the Hubbard Street Group proposed development and introduced fellow presenter 
Deputy Community and Economic Development Director Xandon Keating  
 
Mr. Keating provided an overview of the project site located at the southeast corner of 
6th and Garfield Streets comprised of 18,000 square feet of vacant land. 
 
Mr. Keating stated the developer is Hubbard Street Group who is specialized in urban 
infill sites and have done developments across seven states. He shared that Hubbard’s 
portfolio includes a variety of mixed-use, transit-oriented development projects with 
almost 1,000 units and multiple retail developments. 
 
Mr. Keating stated the proposal is a 26-story multifamily development with 309 rental 
units and 10 percent for workforce housing. He also shared the proposed development 
would include 201 parking spaces, nearly 7,000 square feet of retail and restaurant

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space and 2,800 square feet of co-working space. Mr. Keating stated the request is for 
an eight year abatement of government excise tax. 
 
Mr. Keating shared the benefits of the proposed development include $87 million 
investment of a new co-work development, infill of vacant land, new workforce housing, 
increased construction and permanent jobs as well as increased tax revenues. He also 
shared the developers would provide a $100,000 contribution to the City‘s Housing 
Department for low incomes housing initiatives. 
 
Councilman Nowakowski asked if the offer includes the Government Property Lease 
Excise Tax (GPLET) with the addition of 10 percent for workforce housing. Mr. Keating 
confirmed this is correct.   
 
Councilwoman Pastor asked how the $100,000 donation to the Housing Department 
was determined. Ms. Mackay stated the attorney for the developer was available to 
answer questions. Nicholas Wood, representing Hubbard, stated the developers came 
forward with the concept of the $100,000 contribution to the Housing Department to 
support the affordable housing plan that was recently approved by the City Council. 
 
Councilman Nowakowski stated that the contribution is a good trend to continue as  the 
City evaluates future developments throughout the City. 
 
Councilwoman Stark expressed support for the proposal. 
 
Councilwoman Pastor asked what the $100,000 donation would be contributing to in the 
Housing Department. Ms. Mackay stated that a more comprehensive plan for the 
$100,000 would be provided to the full City Council during the next Formal meeting. 
 
Councilman Nowakowski asked if it was possible to create a new fund dedicated to 
affordable and workforce housing. Mr. Wood stated this was one of the goals of the 
developers for the additional contribution after conversations with numerous members 
of the City Council. 
 
Mr. Keating concluded his presentation by requesting the Subcommittee recommend 
City Council approval to enter into a development agreement, lease agreement, 
easements and other agreements as necessary, with Hubbard Street Group, its City-
approved designee, for the development of a 26-story multi-family rental and 
commercial project located at the southeast corner of 6th and Garfield Streets in 
downtown Phoenix. 
 
Councilman Nowakowski made a motion to approve staff’s recommendation. 
Councilwoman Stark seconded the motion, which passed 3-1.   
 
7. Contracts with Arizona Fresh Holdings, LLC for the Redevelopment of the Del 
Rio Former Landfill at 1150 E. Elwood St.

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Community and Economic Development Director Chris Mackay introduced fellow 
presenters Interim Parks and Recreation Director Tracee Hall and Assistant Public 
Works Director Joe Judice. 
 
Ms. Mackay provided an overview of the proposed Del Rio Development site. She 
stated the proposal includes a total site of 156 acres with current zoning of heavy and 
light industrial. Ms. Mackay also shared the proposed site was a landfill and previous 
city park. 
 
Ms. Mackay shared background on previous community input pertaining to the site 
including the 2003 Rio Solado Beyond the Banks Area Plan, 2012 Del Rio Brownfields 
Plan and the 2012 Del Rio Park Conceptual Master Plan. She stated that in 2012 the 
City was unable to fund the Parks and Recreation Board approved master plan. 
 
Ms. Mackay also shared background on previously issued Requests For Proposals 
(RFP) to redevelop the site. These previous RFP were issued in 1995, 2005 and 2018. 
The two submissions in 2018 were disqualified because they failed to meet the RFP 
requirements.  
 
Ms. Mackay then shared the City released another RFP in January 2020 with a focus on 
developing a mixed-used project, shared use path along the northern border, trail and 
recreational elements for public use and adherence to environmental regulations. She 
stated the five offers received included a golf concept, an office research park, soccer 
fields and academy concept, as well as, solar testing and research facilities. Staff 
selected the Arizona Fresh proposal based on the unique offer to provide solutions in all 
areas of community interest. 
 
Ms. Mackay provided an overview of the four phases associated with the proposed 
development for Arizona Fresh. She stated that phase one includes a wholesale 
produce market, educational programs and pedestrian friendly park. Ms. Mackay shared 
the later phases included an agri-food research center, test fields, start-up incubator 
and conference center as well as a multi-tenant office park for strategic partners.  
 
Ms. Mackay stated the wholesale produce market includes a 210,000 square foot “cross 
dock” distribution center with 66 individual units of 3,200 square feet each. She also 
shared the space is for “zero waste” activities and will be a source of fresh produce for 
an adjacent farmers market. Ms. Mackay stated the first phase will provide benefits 
including access to fresh produce year-round with dozens of local producers.  
 
Ms. Mackay shared that phase one benefits also include education and research 
resources with on-site university research, 20 acres of parkland, spaces for events and 
outdoor entertainment venues. She also stated the proposed development includes 
1,460 construction-related jobs and 1,500 operational jobs.

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Ms. Mackay shared that a study by Geotech is ongoing and have taken 10 core soil 
samples from the site already. She stated that no chemicals or hazardous materials 
have been identified during the study to date.  
 
Ms. Mackay provided information on the community outreach efforts associated with the 
proposed development. She stated the property owners and residents that are 1,200 
feet from the site and 45 neighborhood associations one mile from the site were notified 
of the proposal. Ms. Mackay shared that numerous community meetings were held, 
including one in Spanish, and that the proposal was approved by the Parks and 
Recreation Board in August 2020.  
 
Ms. Mackay stated the proposed business terms include the developer shall construct a 
phased, mixed-use project that includes an Agri-Food Innovation Center and fund, and 
then construct a 20-acre City-operated public park. She stated the proposal includes a 
100-year ground lease for an annual rent of $1 and that the Parks and Recreation 
Department will operate and maintain the park. Ms. Mackay also stated the City will 
provide access to the new park from 7th street.  
 
Ms. Mackay concluded her presentation by stating the recommendation for the proposal 
was recently approved by the Land Use and Livability Subcommittee and will be before 
the full City Council for consideration during the next Formal meeting. 
Councilwoman Stark expressed her support for the project. 
 
Councilwoman Pastor asked for further information on access to the site and other 
infrastructure requirements for the development. Ms. Mackay stated the developer 
would be responsible for utilities and other infrastructure to the site. 
 
Todd Hardy expressed support for the project. 
 
Councilwoman Pastor expressed support for the project as a continuation of 
Congressman Pastor’s vision for the Rio Salado.  
 
Call to the Public  
None. 
Future Agenda Items 
None. 
Adjournment 
Chairwoman Pastor adjourned the meeting at 11:00 a.m. 
 
Respectfully submitted, 
Zack Wallace