Housing Subcommittee Meeting – December 11, 2024

The Housing Subcommittee of the Phoenix City Council met on December 11, 2024, at 10 a.m. to discuss a workforce update from the Bloomberg Philanthropies partnership and a development agreement for the Halo Vista (Biscuit Flats) project. The meeting was chaired by the Vice Mayor. No public comments were received.

Consent Calendar

• Approval of Minutes: The minutes of the previous meeting were approved unanimously.
• Items 2 and 3 (Consent): Approved unanimously.

Discussion Items

• Bloomberg Workforce Update (Item 6):

  • Presented by Christine Mackey (Director, Community and Economic Development), Lisetta Hogans (Deputy Director and Executive Director of Workforce), and Gordon Ains (Bloomberg Philanthropies).
  • Labor Market Overview: The Phoenix MSA jobs grew nearly 3% year-over-year by mid-2024, significantly outperforming the U.S. Unemployment remains low, and the ratio of job openings to unemployed residents is well above the national average. Employers face skill mismatches, especially in IT and manufacturing (e.g., soft skills, AI, supply chain management).
  • Workforce Challenges: Approximately 162,000 vacancies in Phoenix businesses; 45% of small business owners report difficulty filling positions.
  • Bloomberg Partnership Achievements: The city has established three registered apprenticeship programs (including the nation’s first semiconductor technician apprenticeship), hosted over 210 hiring events, and served over 2,000 participants through Arizona Works locations.
  • Strategic Plan: A three-year plan focusing on employer-led, data-driven decisions, developing a community of practice, identifying additional funding sources, and creating a single digital front door for job seekers and employers.
  • Funding Gap: Compared to Los Angeles (total workforce budget ~$150M, only one-third from federal WIOA) and Portland (similar federal funding but only 20-25% of total budget), Phoenix relies heavily on decreasing WIOA allocations and lacks a structured fundraising function. The Cognizant Foundation allocated $6M to workforce training in other cities but not Phoenix. The team proposed hiring a fundraiser to draw down more philanthropic and corporate funding.
  • Next Steps: Continue employer engagement, focus on emerging industries (advanced manufacturing, semiconductor), expand funding opportunities, and utilize the mobile career unit. Bloomberg funding ends June 2025; a fundraising strategy will be presented in early 2025 (calendar year).

• Halo Vista (Biscuit Flats) Development Agreement (Item 7):

  • Presented by Christy Mackey and Nathan Wright (Deputy Director, Community and Economic Development).
  • Project Overview: Halo Vista is a 2,300-acre tech park in northwest Phoenix, adjacent to TSMC’s campus. It includes 12 million sq ft of industrial (The Forge), 3.5 million sq ft of research/tech office (Sonoran Oasis Research and Technology Park), over 500,000 sq ft of retail, an auto mall (up to 10 dealers), and space for residential, medical, and educational uses. Total build-out estimated at 30 million sq ft, with 62,000 jobs (conservative estimate; others suggest up to 80,000).
  • Proposed Development Agreement Terms:
    • MAC (developer) will design and construct all public infrastructure (streets, water, wastewater, flood mitigation, etc.).
    • Developer must obtain first building permits within 24 months (extendable by 24 months if delays are not their fault).
    • Convey rights-of-way at no cost to the city.
    • Reimbursement from the eligible general fund portion of sales tax generated solely by the project (no other taxes, restricted funds not included). Reimbursement term up to 25 years; if infrastructure is completed earlier, term ends at year 17.
    • Estimated infrastructure cost between $1-2 billion, but reimbursement will be a fraction of that.
    • Reserve 400,000 gallons of wastewater capacity for the first phase; a companion item for the North Gateway wastewater treatment facility will come to council in early 2025.
  • Discussion: Councilmembers thanked staff for the comprehensive planning. Vice Mayor clarified the 24-month permit timeline and the extension provision. Councilman Robinson noted the project’s scale compared to previous master-planned communities (e.g., Ahwatukee, Desert Ridge).

Key Outcomes

• Bloomberg Workforce Update: Received as information; no vote required. Staff will return in early 2025 with a fundraising strategy.
• Halo Vista Development Agreement: The subcommittee voted unanimously to recommend the agreement to the full City Council (motion and second; all ayes). The item will be heard at a future council meeting.
• Meeting Adjourned: The meeting was adjourned shortly after the Halo Vista vote. No other agenda items were raised.