Good morning and welcome to the January 26, 2026 Economic Development and the Arts Subcommittee.

I'd like to call the meeting to order and then turn to our city attorney to explain public comment.

Morning, Madam Chair, members of the subcommittee.

During citizen comment, members of the public may speak to the subcommittee for up to three minutes on issues of concern to them, however, matters addressed within must be within the jurisdiction of the committee and the council.

The citizen comment period is limited to 30 minutes.

Open meeting law allows the subcommittee to listen to the comments but prohibits uh subcommittee members from discussing or acting on issues presented.

However, subcommittee members may respond to criticisms.

Thank you, Madam Chair.

Thank you so much, sir, sir.

And then I'd like to allow our interpreter Elsie Duarte to introduce herself.

Elsie.

Yes, thank you, Madam Chair O'Brien.

My name is Elsie Duarte, and I will be providing Spanish interpretation during today's economic development and arts subcommittee session.

I will now take a moment to address our Spanish speaking audience.

Buenos días, my name is El C Duarte.

Presencialmente, Babor de Passar Boronos Audífonos Ubicados Alentrada de la Sala de Camaras.

Las personas registradas para ser un comentario publico sepan que podran hablar libremente sin interrupciones durante el tiempo disponible.

Sous commentarios serán interpretados al momento que usted termine de hablar.

Gracias.

Thank you, Madam Chair O'Brien.

Thank you so much, Elsie.

Um we have nobody for the general call to public, so um, and joined by Councilman Stark and Councilman Robinson online.

We'll go to item number one, which is approval of the minutes.

Do I have a motion?

Madam Chair, I am we have a second second.

Okay.

Councilman Robinson with a motion, Councilman Stark with a second.

All those in favor, please say aye.

Aye.

Aye.

Aye.

Any opposed.

Hearing none of the motion passes unanimously.

So now I would like to welcome to the table, our community and economic development director, Ryan Tohill, and Thomas Sawyer, our economic development program manager to talk about aviation land reuse.

Oh, you're already there.

Sorry.

I should pay a little bit more attention.

Our aviation land reuse strategy land disposal located on Madison Street.

There are three parcels within area A, and this is an item for discussion of possible action, and we do have a member of the public here to speak once you're done with your presentation.

Go ahead, gentlemen.

Thank you.

Good morning, Madam Chair and members of the subcommittee.

My name's Ryan Tuhill.

I recently joined the City of Phoenix as a community economic development director.

I want to thank you for the opportunity to be here today.

And within this area, the aviation department owns 782 parcels of noise land scattered throughout, as shown by the colored boxes here on the screen.

In December 2022, aviation received approval from the FAA to dispose or redevelop 427 parcels of aviation noise land.

This was the greatest and largest 163 determination in FAA history.

These parcels are specifically identified within blocks A through J, shown here on the screen.

The determination also provided guidance on sale conditions for disposal of the aviation noise land.

And in close coordination with the aviation department, CED is charged with leading the execution of the land reuse strategy to ensure land disposal efforts align with community goals while ensuring compliance and compatibility with airport operations.

Also ensuring that all disposals require acknowledgement of the site's proximity to Sky Harbor International Airport and agree to execute a navigations easement with the city, acknowledging any in operational impacts such as noise from aircraft and a deed restriction prohibiting residential use.

Before today's item, I would like to share some background information on the um other land offerings that have been conducted in the area A of the 163 determination.

On June 2021, CED issued a request for proposal for the lease and redevelopment of city-owned parcels near 1414 East Jefferson Street, consisting of seven parcels or 1.1 acres, shown here outlined in purple for a mixed-use mixed income residential project.

Due to lack of developer responses, the RFP was canceled in August of 2021.

And subsequently, in 2022, aviation requested the FAA complete its review under the Part 163, which allowed for more flexibility for airports to redevelop Aviation Noise Land.

And in 2023, staff sought authorization to conduct direct negotiations for the disposition and redevelopment of the site.

And the city has been unsuccessful finding a developer at this time.

Switch to the next one.

In June of 2024, CED sought authorization to offer a second site through competitive process.

This two parcel or 1.74 acres site shown here and outlined in yellow.

The site includes a.37 acre of neighborhood services department property located on Washington Street.

This property contains a vacant commercial structure and surface parking that has recently been demoed.

The site was rezoned to walkable urban code 5 to 7 in 2023.

And due to this package's location north of Jefferson Street, residential mixed use is allowed under the 163 determination.

Therefore, staff sought authorization to issue an RFP for this site.

An RFP has not yet been issued.

However, when we get to it this later this year, each proposer will be required to demonstrate successful completion of at least one vertical mixed use development project of at least three stories in the last seven years, and then offer to return to the city equal or greater than the appraised value of the site.

An appraisal will be ordered immediately prior to the issuance of the RFP.

And the RFP will include standard terms and conditions and other necessary requirements.

Responsive proposals will be evaluated by a panel that includes city staff and community representatives, and then following negotiations, the recommendation of the successful proposer, proposer or offer, and business terms will be presented to the subcommittee for review and recommendation.

And we plan to issue this RFP sometime later this year.

Now on sorry, give it hold one second.

Councilwoman Pastor.

So my hearing correctly, um, the yellow um lines.

It doesn't say A, but it's it's so the yes, those.

Am I hearing correctly?

You are putting together an RFP to take those out.

Yes.

Okay.

And I just want to understand on A, the other previous lines.

I heard that uh an RFP was sent out, but then uh no one applied for it.

Correct, madam chair to uh council member pastor, you are correct.

Um, for these two groups kind of up in the north uh that we showed in purple and yellow.

Purple, we had issued uh an RFP in the past and it was canceled due to lack of response.

Okay.

And I guess my question to that is are you gonna put another RFP out?

Because I didn't hear.

Yeah.

Um right now we do have council's authority for direct negotiations.

However, um, if it showed interest, we would issue another RFP in the future, yes.

We haven't fully decided yet what we're gonna do.

But you have the authority to do it.

Is that what I'm hearing?

We do for both of them, yes, we have authority to issue RFPs.

And what would make you not want to do another RFP for the ones in the blue or purple or whatever it is?

I think correct me if I'm wrong.

If we got a direct negotiation of developer for the property to the east at 1414, the first grouping, we could also continue those discussions.

Chairwoman O'Brien and Councilman Pastor and subcommittee members, from my understanding, what's been explained to me by economic development is basically when they issue an RFP.

If there is no interest in the department, has the um uh I guess the authority to do a direct negotiation as well to see if there's interest and if they can develop that property.

But that's my understanding is they would do that once they've done an RFP and if there were no submittals, or if the other submittal did not happen.

So I think that's to Ginger's point.

Uh you know, we um issued one RFP, it was canceled for lack of response.

We have direct negotiations.

The second grouping of yellow, we have not yet issued that RFP, so we would have to get responses or non-responses before we could enter direct negotiations.

So big okay, so because the um group that is in the northeast corner has had the RFP issued and then canceled because of lack of interest.

You now have the authority to do direct negotiation should somebody show interest in that area.

The property in what is the northwest corner of this um shape here.

You've not done the RFP.

You will do that.

I heard you say later this year, but because we're in the beginning of the year, that's a long 11 months.

So, do we have a mid-year third quarter, a guesstimate that I promise not to like write in cement or anything, but madam chair, members of the subcommittee are are we're tentatively very tentatively looking at kind of late summer for this site.

Um, we're in the process of back.

So sorry about that.

Okay.

We're in the process of hiring a few positions on the team that works on these types of RFPs, so we need to get our staff capacity uh back up, and then we're in the process of also looking at a number of other RFPs outside of um these projects that we're just need to prioritize.

So we we hope to have that prioritization done uh in the next few weeks, and once we have a better sense of when we'll have our staff positions filled.

Okay, excellent.

Does that help, Councilwoman Pastor?

I think I understand that.

Wonderful.

Okay, please continue, Thomas.

Thank you.

Um and now on to uh today's item.

Uh the properties to be disposed of are located on Madison Street outlined here in blue.

The groupings consist of three separate and non-contiguous parcels, which impact their development potential.

The parcels are currently zoned R5 residential, and the properties are surrounded by homes or vacant land.

And the parcels were appraised at 386,000 as of April 2024.

The groupings um was offered for sale from August 1st to August 30th, 2024 for 30 days through the city's website and then add in the Arizona Republic.

The city received one offer for the groupings on August uh 2024.

Staff reviewed the offer and recommends selling to Pilgrim's Rest Foundation, Inc.

Um, Pilgrims Rest is the majority adjacent landowner owning most of the block north of Madison Street and the adjacent parcels east of the city-owned parcels on the south side of Madison, shown here in the yellow boxes.

So the city-owned property are in green and pilgrim's rest is yellow.

Pilgrims Rest submitted an offer for 450,000 for all three parcels.

The offer exceeds the appraised value, generating additional revenue to aviation.

And this is a straightforward compliant fiscally responsible disposal to an adjacent landowner.

So why Pilgrims Rest Foundation?

Um Pilgrims Rest has made substantial and sustainable investments in the East Lake Park neighborhood, most notably through the Pilgrim's Rest Sanctuary and a surrounding campus at 1401 East Jefferson Street.

They've referred to this site as the campus.

The campus functions as a community hub that includes a major worship facility serving more than 4,000 congregants and Arizona State University Charter School Partnership, a wellness center, and administrative operations that deliver essential social service programs to individuals and families living in and throughout the city.

The campus is therefore not a standalone property.

It is a mission-driven institutional anchor whose long-term longevity directly affects the stability, safety, and economic health of the surrounding neighborhood and into the rest of the city.

For that reason, the future character, quality, and uses of the properties being assembled immediately west of the campus.

Their assembled lots are of strategic importance to Pilgrim's Rest in the East Lake neighborhood as a whole.

The sale of these city parcels will only strengthen the campus's ability to operate, expand, and fulfill its comput community mission into the future.

Therefore, the leadership of Pilgrim's Rest has determined that any future use of the assembled lots must be compatible with and preferably advance the mission and activities already occurring on the campus.

Over the years, years Pilgrims Rest has received consistent interest from investors, developers, and mission-aligned partners seeking to participate in this long-term vision.

At present, Pilgrim's Rest has not committed to a specific development program, partner our schedule, and intentionally retains full reflexibility in order to pursue the highest and best outcome for its mission and for the city of Phoenix.

Pilgrims Rest approached this land assembly as a patient long-term community center for steward, not a short-term transactional developer.

And the future development will be guided by their principles.

And with that, we request the economic development and uh the arts subcommittee recommends city council approval to sell city-owned property identified by the aviation department as excess noise land inventory in area block A.

I'm happy to answer any additional questions.

Madam Chair.

Yes, Councilwoman Stark.

And this is just by way of a comment.

I I think this is a good plan.

I I do think that we've had a wonderful relationship over the years with Pilgrim Rest.

And so I certainly would be supportive of this recommendation.

Thank you, Madam Chair.

Thank you, Councilwoman Stark.

Um, Councilwoman Pastor.

So I would like to make a motion.

Okay, to uh move the recommendation, the request uh that economic development and arts subcommittee recommend to city council approval to sell the city-owned property identified by the aviation department as excess aviation land reuse strategy land inventory at a price negotiated on the open market based on the city's appraisal to Pilgrim Rest Foundation Inc.

I will second.

Thank you.

Councilman Robinson, do you have any questions?

No, none at all.

I the only thing I would add, but Councilwoman Stark stated it already.

Our relationship with Pilgrim's Rest that all that they are doing in that area is substantial and I think this is a great deal.

Wonderful.

Um, I have one question.

Can this I know that depend it sounded like we couldn't do residential in some of the land, but then you made some comments on different parcels that you could that residential could be mixed use residential could be done in some areas.

Can these parcels have residential?

Madam Chair, no, these cannot.

These will are are included in the 163 as parcels that cannot.

The only ones that we were uh authorized to do, like a multifamily mixed-use low-income housing were the ones north of Jefferson and block A.

Okay, wonderful.

Sorry, go ahead.

Um, and then I have a public speaker on this item.

So like to hear from Gerald Good.

Thank you, sir, for joining us.

Thank you for having me.

Um, my name is Gerald Good.

I am the middle son of uh former city councilman Calvin C.

Good.

And I thank you for allowing me to be here today.

Uh uh my question is not directed to the parcels of land we are our families landowners in the area, and we certainly support Pilgrim Rest and what in their efforts to what they're doing.

Um what I wanted to speak on was what you touched on was the 14, 14 uh East Jefferson land.

Um if you allow me just a few minutes to share of of where we are with that and what we what we have done as a family.

Tomorrow would be my dad's 99th birthday.

So I, you know, I think of this meeting as well.

This coming up at that time.

Um as a family, my dad always wanted to have affordable housing in the East Lake neighborhood, and he fought for that for many years.

It was an unrealized vision.

And we've had the opportunity over the last couple of years to try to bring that to fruition.

Um we've had uh meetings with the former director, Christine Mackey, uh, met with her, and we were trying to work on some things uh with Plaza Company and several other individuals.

Um we have been trying to identify a developer for that.

And so as of maybe about a month ago, we've uh uh come across a potential developer that could work with us on that.

And so we would like the opportunity to sit down with the uh your staff again and to look at that and see if this is something that we can flesh out and bring affordable housing to the area.

Affordable housing is needed, and we feel like we we want to bring that legacy to fruition in the name of our uh father and my mother.

Well, wonderful.

Thank you so much for those um very thoughtful comments, and thank you for spending some time with us this morning.

I would ask that um Ryan and Thomas, you you sit down with them and see where we're at on a potential future project for that land.

Um Councilwoman Pastor.

Thank you.

Um before we go to vote, uh what I would like to say is that uh please forgive me for asking those questions because I was like, I thought this was a pilgrim's rest, we were gonna move it.

But now uh forgive me in not studying my packet so well.

Um I think this is uh well deserving, especially for that area, uh, knowing the history of that area and uh wanting to maintain and advance, but also wanting to preserve the history of East Lake Park and all that has happened in that space.

And I would agree we need uh affordable housing within that area and space um just for the sake of the neighborhood um what little we still have.

And so I think this is a great opportunity uh for economic development uh in that space, and as the collective comes together and continues to preserve uh what I know of the good family, and uh happen to be around and uh mentored, and even grandkids of theirs that now are friends and associates.

Uh, it's very important to really preserve this area and its history.

So I am um I'm more than open and welcome to proceed with the vote.

Thank you, Councilman Pastor.

Um given there's no more discussion or questions, all those in favor, please say aye.

Aye.

Aye.

Aye.

Any um nays.

Hearing none, the motion passes unanimously, and we look forward to um the future of these parcels and and our continued relationship with Pilgrim Rust Foundation, and and hopefully we'll soon be back at the table to talk about um the other parcels and and how we can help to further um bring back life to that community and and opportunities.

So thank you, gentlemen, for the presentation.

Um we do have another.

Oops, gonna go back to my agenda.

Uh we do have another person from the public here to speak today, and that is Diane Barker.

Sorry, what here all yes for call to the public.

Well, good morning in a chili Phoenix.

And uh I'm loving it.

I've lived in the valley half of my life, mainly Phoenix, and I'm interested very much in the future.

I'm glad to see that the good family is here, and uh I knew Calvin Good uh in his later years, he was able to live up in his 90s, and I said, Councilman, that mountain can be South Mountain, and he agreed.

So let's reach Martin Luther's Mountain and make it Phoenix South Mountain.

I'd like to add after le uh reading the minutes, you're looking to s increase, and we're in competition for convention center with up to 10 major cities in the United States, the hotel.

And having been on a meeting where we were redesigning Adam Street, you know, I love that street, but it's a sleepy street.

And it could all turn around, you know, with the design.

Of course, the people that own the property have more say than I do, and that would be the Hyatt Hotel and that Regency Garage.

I've often thought, tear that garage down because as speaking with Don Kluth, I said, I was able to see the Alliance building.

He goes, What?

Let's have lunch.

So we visioned that if you would tear that down and create, it could be hotel, it could be ASU space, it could be retail, but you curved that building and you make a plaza over there and it opens up the whole thing, and you make it really something.

You could uh make it an education center for solar and wind, uh uh, you know, renewable energy, it could be a place where the students have come to ASU science, they are able to see that.

And uh that would be really be something, but uh during that study, people were very, very uh instilled in keeping parking spaces on Adams.

That's completely what needs to go.

And you can make delivery still in that area by the alley, and you can preserve, you know, Marley's, which is in a historic building.

So that's what I'm offering today.

That we revisit that whole block there.

We're getting a new uh hotel, a boutique hotel that's near the light rail, and it could be really one of the best streets in the whole world, and so that would be something that I would work to forward to uh and look forward to.

Uh also what I really think I've invited a friend to go to Desert Botanical Garden today.

We're gonna take light rail.

And she wouldn't go, we need to energize the public to know it's good to take transit.

Thank you.

Thank you so much, Diane, for joining us today and for your comments.

I would ask the uh my fellow committee members if there are any um requests for future items.

You do have the the layout for the next few months, but if there's anything additional you would like to see.

Okay, is that correct?

Uh yes, entertainment district study will be coming to us in February and hearing no other requests.

I am thrilled to give everybody the gift back of time this morning.

So we are in turned.

Thank you.

Thank you.

Shum has always been a very curious student.

I had him for actually four classes in the bio.