Summary:
Per the City’s Economic Development Implementation Plan (EDIS), the P83 district is a key investment zone for facilitating economic development activities. Last October, the City issued a Request for Proposals (RFP) to solicit projects that support the redevelopment of city-owned sites within the P83 District. The City was seeking proposals from experienced development teams that could execute quickly and bring high quality design and unique projects to the district.
Over the past six months, the city has been working with Common Bond Development Group (CBDG) on a proposed dining district that will include three first class, highly sought-after restaurant concepts. CBDG is a commercial real estate development company located in Phoenix that has demonstrated an ability to deliver several notable industry-redefining restaurant and retail projects throughout the region.
The 2.66 acre site that has been identified for this project is within the Peoria Sports Complex north parking lot, east of 83rd Avenue and south of Paradise Lane. The City will complete an appraisal for the property and the Developer has agreed to pay the appraised value less any reimbursable infrastructure improvements. Staff has worked collaboratively with principals from CBDG to negotiate a Development Agreement and a Real Estate Purchase Agreement that outlines the terms and conditions for acquisition and development of the three high quality restaurants and associated improvements.
In order to facilitate the development of the site and in conjunction with planned new parking facilities for the Sports Complex, the city has identified certain public improvements that may be completed concurrently with the project. These include some improvements to Paradise Lane, a new driveway access to the stadium parking lot and a pedestrian/trail amenity adjacent to the development site.
Per the terms of the Development Agreement, Developer will cause the construction of three (3) top tier Quality Restaurants, placemaking amenities and other accompanying features, and may complete all or a portion of the public infrastructure. The City would provide reimbursement for the public infrastructure, in an amount not to exceed the purchase price, initiate a replat of the site and commit to a priority track reviews. The Agreement also outlines terms related to the timing of development, and, in connection with the closing under the Real Estate Purchase Agreement, the City will enter into a Parking License Agreement.
The City also negotiated a Real Estate Purchase Agreement that sets the terms for the sale and acquisition of the site conditioned upon, among other things, Developer obtaining final Planning and Engineering approvals from the City for the development of at least two of the three quality restaurants within one (1) year from the opening of escrow. Developer must also complete the full project no more than 15 months from the closing of escrow. In the event of a Developer default, the city would have the ability to buy back the property for the original purchase price.
Staff is also requesting $50,000 to pay for the project appraisal, the replat of the site and other professional services needed to meet the city’s obligations under the agreement which may include contract reviewers and engineering estimates/conceptual plans for Paradise Lane improvements.
Upon City Council approval, staff will work with CBDG to complete all transactions as contemplated within the agreement.