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ITEM 2 |
City Council Memorandum Cultural Development Memo No.
CD 23-011
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Date: |
November 7, 2022 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Tadd Wille, Assistant City Manager Kim Moyers, Cultural Development Director |
From: |
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Subject: |
Final Adoption of Ordinance No. 5036, adopting the provisions of a development agreement and purchase agreement with One Chandler Owner, LLC, for the sale and redevelopment of City-owned real property located at the northeast corner of Arizona Avenue and Buffalo Street, known as “Site 7” in Chandler. |
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Proposed Motion: |
Move City Council adopt Ordinance No. 5036, adopting the provisions of a development agreement and purchase agreement between One Chandler Owner, LLC, and the City of Chandler for the sale and redevelopment of City-owned real property located at the northeast corner of Arizona Avenue and Buffalo Street, known as “Site 7” in Chandler, Arizona, and authorizing the City Manager to sign all related documents as approved by the City Attorney. |
Background: |
Site 7 is comprised of 1.686 acres located at the northeast corner of Arizona Avenue and Buffalo Street. The site is vacant and owned by the City. It is currently utilized for parking but otherwise unimproved. In May 2017, a Request for Proposal (RFP) was issued for Site 7. The RFP outlined preferred specifications including an urban, mixed-use development that would include retail, restaurant, office/services, and parking. On April 25, 2019, City Council approved a Development Agreement between the City of Chandler and LGE Design Group, LLC. On August 25, 2021, the City and LGE Development Group, LLC, mutually terminated the Site 7 Development Agreement (A) due to the developer being unable to meet the construction timelines specified in the Development Agreeent. In December 2021, Jackson Dearborn Partners, now known as One Chandler Owner, LLC, acquired the parcels immediately north and adjacent to Site 7. The City of Chandler and One Chandler Owner, LLC, began negotiation of a development agreement which would assemble Site 7 and the parcels immediately north, allowing for a more robust, higher-density project. |
Discussion: |
The Development Agreement between One Chandler Owner, LLC, and the City of Chandler includes a proposed mixed-use project consisting of 290 units of housing, 13,000 square feet of office space, 16,000 square feet of retail space, and a self-contained parking structure. Per the agreement, the City will sell Site 7 to One Chandler Owner, LLC, for its appraised value of $2.94 million. Should One Chandler Owner, LLC, not fulfill the obligations of the agreement, the City has the right to reacquire Site 7. Deadlines within the Development Agreement include the commencement of construction no later than 24 months from the effective date of the agreement and completion of construction no later than 54 months after the effective date. One Chandler Owner, LLC, has also agreed to improve the alleys between the project and Jack in the Box. The project is within the boundaries of the Enhanced Municipal Services District and will contribute accordingly. This Ordinance was introduced and tentatively adopted on October 27, 2022. |
Financial Implications: |
Per the Purchase Agreement, the City of Chandler will sell Site 7 to One Chandler Owner, LLC, for its appraised value of $2.94 million. |
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