Phoenix Economic Development and Housing Subcommittee Meeting - June 12, 2024

The Economic Development and Housing Subcommittee of the Phoenix City Council met on June 12, 2024, to discuss and vote on items including the city's homelessness strategy, a major biosciences project, a historic firehouse lease, a development agreement in Laveen, and the creation of a Sports and Events Commission. The subcommittee unanimously approved all action items.

Note: The raw transcript repeatedly identifies the meeting date as January 12, 2024, which conflicts with the provided date of June 12, 2024.

Consent Calendar

• The subcommittee approved the minutes from May 8, 2024, unanimously.
• Consent agenda items 2 through 7 were approved unanimously without questions.

Public Comments & Testimony

• Take Back Our Homes campaign speakers (Avalon/Evelyn Castillo, Andrea Luna, and Sebastian del Portillo) urged the subcommittee to fund and implement a right-to-counsel program for renters facing eviction. They cited successful models in Tucson and Cleveland, noting improved outcomes for tenants and cost savings for cities, and requested a cost-benefit analysis for Phoenix. They also called for eviction prevention funding in the next budget cycle.
• Rick Naymark, president of the Hance Park Conservancy, expressed support for the proposed restaurant lease at the former firehouse, saying the city's investment would make the adaptive reuse possible.
• Linda Abeg, chair of the Laveen Village Planning Committee, spoke in favor of the Gila Foothills Development Agreement, highlighting the balance of housing, employment, and infrastructure needs.

Discussion Items

• Homelessness Strategy Update (Item 11): Deputy City Manager Gina Montez, Homeless Solutions Director Rachel Milney, Housing Director Titus Matthew, and Neighborhood Services Director Spencer Self presented progress under the 2020 Strategies to Address Homelessness plan. Key data included: HMIS quarterly data showing 12,472 unduplicated people served (8,854 single adults and 3,618 in family units), and 31,071 people served over the last year. During encampment closures around the Key Campus, 718 people were engaged and 590 (82%) accepted indoor shelter or alternative placement; of those, 17% were in housing by late March. New shelters include the 280-bed navigation center at 71st Avenue and Bamburen, DePaul Manor (100 beds for seniors/disabled), North Mountain Healing Center (100 beds), and CASS Haven (170 senior beds). Housing programs preserved over 5,200 affordable units, received over 43,000 Section 8 waitlist applications, and made over 4,500 landlord incentive payments. Councilmembers asked about hotspot response, shelter safety and oversight, and the navigation center's referral process and safeguards.
• CAMI Biosciences Project (Item 12): Community and Economic Development Director Chris Mackey and Deputy Director Zandon Keating presented the University of Arizona's Center for Advanced Molecular Immunological Therapies (CAMI) on the Phoenix Bioscience Core. The project is a two-phase, approximately 450,000-square-foot research and education hub. Phase one is about 200,000 square feet with an estimated 500 jobs and a $290 million capital investment. The city's proposed contribution includes a 30-year ground lease with rent abatement, $1.5 million from the Downtown Reinvestment Fund at construction completion, and $1.5 million annually for 10 years beginning in FY2029. Councilmembers voiced strong support.
• Former Firehouse at Hance Park (Item 13): Staff presented a proposal to lease the 4,700-square-foot former Fire Station No. 4 at 1130 N. First Street to Pool House Group for a full-service restaurant. The 2022 RFP received one proposal. Lease terms include an annual rent of approximately $129,000 with a 3% annual escalator, and city reimbursement for core building infrastructure. The Parks Board approved the terms on May 23. Councilmembers praised the project's community engagement and historic preservation.
• Gila Foothills Development Agreement (Item 14): Staff presented a development agreement for a 290-acre PUD near South Mountain, including streets, water/wastewater lines, a future fire/police station site, and a trailhead for South Mountain Park. The developer agreed to donate $500,000 from a billboard installation to fund a Laveen park. The city will reimburse infrastructure costs through TPT sales tax and impact fees over a term of not more than 25 years. Councilmember Hodge Washington and the Laveen Village Planning Committee chair praised the collaborative process.
• Phoenix Sports and Events Commission (Item 15): Jerry Harper, Ron Price (Visit Phoenix), and Mike Hopper (Bloomberg Associates) proposed creating a commission under Visit Phoenix to attract youth/amateur sports and major events. They cited $52 billion in direct sports-related travel spending and $128 billion in economic impact nationally, and noted Phoenix is the only major city without such a commission. The city's requested commitment was $80,000 per year for three years ($50,000 from non-general funds and $30,000 from the tourism hospitality fund), with Visit Phoenix contributing $250,000. The commission would hire an executive director and aim to host at least two major events by year three.

Key Outcomes

• The subcommittee unanimously approved the May 8, 2024 minutes and the consent agenda.
• The subcommittee unanimously approved the CAMI IGA modifications, forwarding them to the full city council.
• The subcommittee unanimously approved the Hance Park firehouse lease and infrastructure agreement with Pool House Group.
• The subcommittee unanimously approved the Gila Foothills Development Agreement.
• The subcommittee unanimously approved the Phoenix Sports and Events Commission funding commitment.
• Councilmember Hodge Washington requested continued exploration of a right-to-counsel cost-benefit analysis, including county and legislative involvement and attention to linguistic and cultural accessibility. The chair acknowledged the request for future agenda items.