Phoenix Economic Development & Housing Subcommittee Meeting - February 12, 2025

This meeting of the City of Phoenix Economic Development and Housing Subcommittee covered updates on the chilled drinking water initiative, the downtown parking master plan, convention center bookings, and a proposal to issue a request for proposals (RFP) for redevelopment of the Regency Garage site. All agenda items were approved or received as information.

Consent Calendar

• Minutes Approval: The subcommittee unanimously approved the minutes of the previous meeting.
• Consent Items (2–5): Approved unanimously without discussion.

Public Comments & Testimony

• Margaret Schultz (representing Worker Power, a nonprofit focused on developer accountability) commented on the Regency Garage RFP item. She recommended that the city explore leasing the site rather than selling it outright, arguing that leasing would allow long-term community benefit, ongoing revenue, and greater city control over the property’s future. She cited past development delays at other city-owned sites as a caution.

Discussion Items

• Chilled Drinking Water Initiative Update (presented by Michael Hammett and Danielle Vermeer): The city launched a pilot with three custom-designed chilled water units in partnership with Downtown Phoenix Inc. and Hands on Greater Phoenix. Key outcomes: 14,000 gallons of water dispensed over one year (equivalent to 106,000 single-use plastic bottles); water temperatures of 65–73°F (vs. 103°F without chilling); surface temperature reduced by 6°F using cooling paint. A community survey has received over 200 responses. Six additional units are in development, funded by grants ($154,000 from Gila River Indian Community, Arizona Community Foundation support, and council district funds). Future expansion includes integration with transit, parks, and cool corridor projects. No formal action was taken.

• Downtown Phoenix Parking Master Plan (presented by Jeff Stapleton, April Truncelito, Brianna Villas): Staff outlined seven recommendations for a 10-year master plan: updating on-street parking rate authority and zones; improving wayfinding signage with consistent branding; launching a web-based ParkPHX (parkphx.com) platform with three tiers of information; piloting dynamic curb spaces and contactless payments; investing 15% of annual meter revenue into system management; updating the Sunburst plan for event ingress/egress; and creating a parking facility investment scorecard for evaluating private partnership proposals. Councilmember Robinson raised concerns about QR code scams; staff committed to working with police on security. Councilmember Stark asked about enforcement by police aides vs. sworn officers. No vote was taken; staff will bring individual components for future council approval.

• Phoenix Convention Center Booking Update (presented by Jerry Harper, Sarah Field, Ron Price, Lauren Edwards): 2024 results: 62 conventions with an estimated $488 million economic impact. 2025 already has 64 conventions booked, on par with pre-pandemic levels. Notable future bookings include Semicon West (first time outside San Francisco), NBA All-Star events (2027), and National League of Cities (2030). Meeting planner sentiment studies (400+ planners) ranked Phoenix high for safety (#6) and convention center quality (#8), but low for convention-quality hotel rooms (#19). Staff updated on three recommendations from the 2022 Convention Sports & Leisure study: continue exploring an entertainment district (report expected April 2025); increase convention hotel rooms (800–1,200 needed); and expand the convention center (South Building redevelopment). Competitive cities (Denver, Austin, Dallas, Fort Lauderdale) are expanding; Phoenix risks losing market share without similar investments. Discussion included marketing outdoor lifestyle alongside downtown amenities. No vote was taken.

• Request for Authorization to Issue RFP for Regency Garage (presented by Christine Mackey, Eric Kerr, Eric Prachnow, Gretchen Wolf): The site at 2nd Street and Adams (currently a parking garage with ground-floor commercial tenant Arizona Latino Arts and Cultural Center) would be offered for redevelopment as a mixed-use project with a full-service hotel of at least 400 guest rooms. The RFP would follow standard city process with multiple community meetings; staff expects to return to council with a recommended proposer in fall 2026. Staff emphasized safeguards: the city does not transfer property until a developer has secured permits. Councilmembers supported the timeline and transparency. Public comment from Margaret Schultz earlier urged leasing instead of sale; staff noted that lease or sale terms would be evaluated in the RFP process.

Key Outcomes

• Approval of Minutes and Consent Items: Passed unanimously.
• Motion to Issue RFP for Regency Garage: Moved and seconded; passed unanimously. The item will go to the full City Council on March 5, 2025.
• Information Only items (6, 7): Received without action.
• No formal votes were taken on the chilled water update, parking master plan, or convention center update.