Attachment A - Jan. 22, 2020 WED Minutes.pdf

Phoenix City Council 
Workforce and Economic Development Subcommittee 
Summary Minutes 
Wednesday, January 22, 2020 
City Council Subcommittee Room 
Phoenix City Hall, Assembly Rooms A, B, and C 
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 10:02 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 Dec. 3, 2019
Councilwoman Stark made a motion to approve the minutes of the Dec. 3, 2019
Workforce and Economic Development Subcommittee. Councilman Waring seconded
the motion which passed unanimously, 4-0.
Item 2 was for consent action. No presentations were planned but staff was available to 
answer questions. 
2. Authorization to Enter into an Agreement for FY 2019-2020 Tourism and
Hospitality Advisory Board (THAB) Funds
Councilwoman Stark made a motion to approve consent item 2. Councilman Waring
seconded the motion which passed unanimously, 4-0.
3. Key Phoenix Economic Indicators Quarterly Report
Information only. No councilmember requested additional information.
4. Authorization to Issue a Request for Proposals for the Lease and
Redevelopment of City-Owned Property Located at 1414 E. Jefferson St.
Community and Economic Development Director Chris Mackay provided an overview of
the request for proposal (RFP) of a mixed-used, mixed-income project at 1414 E.
Attachment A

Jefferson St. Ms. Mackay introduced fellow presenters Deputy Community and 
Economic Director Xandon Keating, Community and Economic Development 
Procurement Manager Gretchen Wolfe and Community and Economic Development 
Program Manager Jeff Stapleton. 
 
Mr. Stapleton shared information about the site location for the proposed development 
along Jefferson Street between 14th and 15th Streets. He then discussed the planning 
efforts that informed the ReInventPHX RFP. Mr. Stapleton stated ReInventPHX 
encourages smart growth, including density and transit-oriented development along the 
light-rail.   
 
Mr. Stapleton provided information on the redevelopment opportunity at the site. He 
stated the desired projects include a mixed-use development that offers mixed-income 
housing and conforms to transit-oriented development principles. Mr. Stapleton 
specified the appraisal of the site is $400,000 for the sale or $24,000 for an annual 
lease.   
 
Councilman Waring asked if the site could be sold or leased. Ms. Mackay stated the 
lease value is calculated through the property sale and confirmed that the site is for 
lease only. 
 
Ms. Wolfe provided an overview of the minimum qualifications in the RFP. She stated 
the proposer must have experience in completing at least one vertical mixed-use 
development of at least three stories in the last five years. Ms. Wolfe also shared that 
the proposed development must be a mixed-use, mixed-income residential project with 
25 to 50 percent of units designated as affordable or workforce. She then clarified that 
no offers for fee-title sale will be allowed.  
 
Chairwoman Pastor asked for further information on how staff determines the 
percentage range of affordable and workforce housing units. Ms. Mackay stated staff 
utilizes a variety of market indicators, but the Subcommittee could recommend setting a 
specific percentage as well.  
 
Ms. Wolfe shared the evaluation criteria for the RFP includes the concept to activate the 
site, the return to the City of Phoenix as well as the proposer’s qualifications and 
experiences. 
 
Councilman Waring asked for further information on the ability to sell the property.  
Ms. Mackay sated the property was purchased with federal dollars for Sky Harbor 
International Airport and the Federal Aviation Administration (FAA) provide guidance to 
not sell the property. 
 
Mr. Stapleton provided information on the timeline of the RFP process which included 
numerous community engagement efforts and will be bringing the result to the City 
Council on Feb. 5, 2020. He said the construction is scheduled to begin early 2021.

Councilman Nowakowski asked if the City of Phoenix owns the vacant property near the 
proposed site. Ms. Mackay stated that Pilgrim Rest Baptist Church owns the property on 
the south side of Jefferson and that the Public Transit Department owns the property to 
the west.  
 
Chairwoman Pastor asked if the property would be returned to FAA if the City were to 
sell the property. Ms. Mackay stated FAA would need to be monetarily compensated to 
release the property. 
 
Councilman Nowakowski asked for further details on affordability housing qualifications. 
Mr. Stapleton stated workforce housing qualifications include 80 to 120 percent of the 
area median household income. He then stated affordable housing includes housing 
vouchers at 60 percent area median income. Councilman Nowakowski then asked if the 
RFP could include 100 percent workforce and affordable housing. Ms. Mackay stated 
the Subcommittee could recommend that adjustment. 
 
Chairwoman Pastor asked why there was a focus on mixed-use. Mr. Stapleton stated 
Housing staff provided information on best-practices for transit-oriented development 
which included the importance of incorporating mixed-used to activate the space along 
the street. Ms. Mackay added that the mixed-use is included to assist in meeting the 
needs of the surrounding community. 
 
Councilman Nowakowski asked if the proposed development could reach 56 feet in 
height. Mr. Stapleton stated the 56-foot height was a policy direction from the Eastlake 
Park community.  
 
Councilwoman Stark asked if there have been developers expressing interested in the 
site and if the affordable and workforce housing requirements could be achieved. Ms. 
Mackay stated staff is in communication with possible developers and have determined 
that the 25 to 50 percent range is achievable.  
 
Councilman Waring requested staff consider selling the property and asked if a wider 
range of the percentage for affordable and workforce housing could be used. Ms. 
Mackay stated that the RFP could be written with a minimum percentage with additional 
points for greater percentages of affordable or workforce housing.  
 
Chairwoman Pastor asked for clarification on the criteria for return to the city. Ms. Wolfe 
clarified that the return to the city traditionally includes monetary returns and public 
infrastructure.  
 
Councilman Nowakowski asked for further information on tax relief for affordable and 
workforce housing developments. Ms. Mackay stated taxes are applied to the 
improvements but the City does not have to pay tax on its own property.

Councilwoman Stark made a motion to approve the request for proposal as amended to 
include a minimum of 50 percent of units dedicated to workforce and affordable 
housing.  
 
Councilwoman Stark made a motion to approve item 4. Councilman Nowakowski 
seconded the motion which passed 3-1, with Councilman Waring voting no. 
 
Councilwoman Stark asked for staff to include selling of city-owned property for a future 
agenda item. 
 
Chairwoman Pastor asked for staff to provide historical information on the Aviation 
Department’s acquisition of land around the airport and for information on the process to 
sell property that was acquired by the Aviation Department. 
 
5. Parking Consulting Services Request for Proposals Contract Award (RFP-
CED19-PCS). 
Community and Economic Development Director Chris Mackay provided an overview of 
the Parking Consulting Services Contract Award process and introduced fellow 
presenters Deputy Community and Economic Director Xandon Keating, Community and 
Economic Development Procurement Manager Gretchen Wolfe and Community and 
Economic Development Program Manager Jeff Stapleton. 
 
Mr. Stapleton shared additional background on need for a parking management 
strategy and plan as a result of limited land supply with increased demand. He stated 
the City Council authorized an RFP in June 2019 for parking consultant services to 
develop a parking study and prepare a 10-year parking master plan.  
 
Mr. Stapleton stated the recommended proposer was Kimley-Horn. He shared that 
Kimley Horn specializes in planning and design, has offices across the U.S. and has 
completed parking studies in Dallas, Columbus, Boise, Tempe and other cities.  
 
Mr. Stapleton detailed that the parking study will focus on the downtown core and 
provide recommendations to address parking demand for business and sport 
attractions, ASU downtown campus, Phoenix Biomedical campus, Roosevelt Row, the 
Warehouse District and in surrounding neighborhoods. He then stated the study will be 
provided to the City Council in Fall 2020 and will include information on how to optimize 
parking rates and spaces as well as encourage more efficient use of existing parking 
resources. 
 
Mr. Stapleton stated the agreement includes an initial term of one year and will not 
exceed $384,000 in aggregate with funds from the City and Downtown Phoenix Inc. Mr. 
Stapleton concluded the presentation by requesting the Workforce and Economic 
Development Subcommittee recommend City Council approval to award a contract with 
Kimley-Horn and Associates, Inc. to provide consulting services for the development of 
a parking study and master plan for the Downtown Redevelopment Area.

Chairwoman Pastor asked for further information on the geographic boundaries of the 
downtown core. Mr. Keating stated the geographic region for the study is focused on the 
redevelopment area which includes facilities north of McDowell Road to Grant Street 
between 7th Avenue and 7th Street. 
 
Councilwoman Stark asked if staff is coordinating with Downtown Phoenix Inc. (DPI). 
Ms. Mackay confirmed staff is coordinating with DPI on the curbside study, which 
includes other uses beyond parking.  
 
Mr. Dan Klocke of Downton Phoenix Partnership stated DPI and the City are 
coordinating on the curbside study and the parking study. He also stated Downtown 
Phoenix Partnership will begin a pilot shuttle program to address the parking issues in 
February 2020. 
 
Councilman Nowakowski made a motion to approve item 5. Councilwoman Stark 
seconded the motion which passed 3-1, with Councilman Waring voting no. 
 
6. Market Feasibility Study for the Phoenix Convention Center 
Assistant City Manager Milton Dohoney, Jr. provided a background of the Market 
Feasibility Study for the Phoenix Convention Center then introduced Phoenix 
Convention Center Director John Chan. 
 
Councilman Nowakowski joined the meeting telephonically. 
 
Mr. Chan shared an overview on the Market Feasibility Study and introduced Mr. John 
Kaatz of Conventions Sports and Leisure (CSL). 
 
Mr. Kaatz provided information on the Convention Center’s space utilized history. He 
stated the Convention Center has not reached 70 percent space utilization which 
indicates expansion is not necessary but that there are seasonal opportunities to 
increase capacity. He also shared that additional expansion is limited to increasing hotel 
capacity.  
 
Mr. Kaatz then provide information on destination amenity benchmarks which include 
the number of dinning places within a half mile of the Convention Center and the 
number of positive TripAdvisor Attractive Reviews within a half mile of the Convention 
Center. 
 
Councilman Waring asked what factors contribute to a positive impression by 
convention planners. Mr. Kaatz stated Phoenix has an attractive brand for conventions 
which results in positive feedback, but the study indicates amenities can be improved. 
 
Mr. Kaatz stated the near-term priories over the next five years include developing a 
large hotel near the Convention Center, maximizing outdoor space, re-inventing the

concourse and incorporating new technology trends. He then shared the long-term 
priorities for the next six to ten years include an expansion of the north building’s upper 
levels to the south building which expands the center’s continuous space.  
 
Chairwoman Pastor asked Mr. Chan to provide next steps now that the study is 
concluded. Mr. Chan stated the next steps include engaging with stakeholders and 
returning to City Council with addition information on the market study.  
Call to the Public  
None. 
Future Agenda Items 
None. 
Adjournment 
Chairwoman Pastor adjourned the meeting at 11:42 a.m. 
 
Respectfully submitted, 
Zack Wallace  
Management Intern