These two agreements govern the operation of the new Civic Square at GSQ Parking Garage currently being constructed in conjunction with the new Goodyear City Hall and Globe Class A Office Building.

ADOPT RESOLUTION NO. 2021-2194 APPROVING THE CIVIC SQUARE PARKING RIGHTS AGREEMENT AND THE NON-DISTURBANCE AGREEMENT, PROVIDING AUTHORIZATION AND DIRECTION FOR EXECUTION AND PROVIDING AN EFFECTIVE DATE. (Roric Massey, City Attorney)
 

The Parking Rights Agreement will formalize the $5 million contribution towards the cost of the parking garage previously agreed to in the Development Agreement for the Civic Square at GSQ project. 

Initial estimates for the annual operations costs for the parking garage range from approximately $34,000 to $68,000 depending on the final staffing levels selected for the garage.  Under the terms of the Parking Rights Agreement, the City would pay for half of those costs. 

The full year operating costs of the building and the garage have been programmed into public works - facilities operational budget.
 

On August 19, 2019, Council previously approved a Development Agreement between the City of Goodyear and Globe Corporation, under which Globe Corp. would develop the Civic Square at GSQ project, which included the new Goodyear City Hall, Civic Square Park, Globe’s Class A Office building, and a shared Parking structure for the development.  Under the terms of the Development Agreement, the City would fund $5 million toward the cost of the Parking Garage and receive allocated parking in the structure, on a pro-rata share, based on the final cost of the structure.   The original Development Agreement contemplated that the parties would subsequently enter into this Parking Rights Agreement to govern the operations of the parking structure.

Under the terms of the proposed Parking Rights Agreement, Globe Corporation through its subsidiary, GSQ Goodyear Parking Garage, LLC (collectively “Globe”), will be responsible for the construction and operation of an approximate 912 stall parking garage adjacent to the new City Hall and Globe Class A Office Building.   Through the proposed Parking Rights Agreement, the parties have agreed to the following general terms regarding the operation of the Parking Garage:

• Globe will own and be responsible for operating the Garage
• The City will be granted a perpetual easement in the Garage for its allocated parking stalls.
• The parties will administratively enter into an annual operations plan for the general operation of the Garage.
• The City shall have 24-hour exclusive use of its 327 allocated parking stalls, and the remainder of the Garage shall generally be available for general public use on nights and weekends (although Globe shall have the right to reserve certain spots for dedicated tenant use).
• The Garage shall initially be operated in a non-gated manner, but Globe, with City input, shall have the right to convert the garage to a gated parking garage with any reduction of spaces being proportionally allocated between the parties.
• The parties shall share the annual operations and maintenance costs on an equal basis with any parking revenues generated to be applied to the operations and maintenance budget to equally benefit both parties.

In addition to the Parking Rights Agreement and due to the financing Globe has in place for the construction of the Parking Garage, Enterprise Bank & Trust has requested the City enter into a Non-Disturbance Agreement (attached as Exhibit B to the Resolution).  The Non-Disturbance Agreement recognizes that Enterprise Bank & Trust has certain secured rights on the Parking Garage related to the financing they have provided.  The Agreement states that the bank recognizes the easements and rights the City has in the Garage and the Bank will honor the Parking Rights Agreement and the City’s right to the use the Garage under that Agreement, should the bank ever become a successor owner of the garage.