Discussion and possible action to a) adopt RES 2022- 71 approving a Development Agreement with Common Bond Development Group Peoria LLC for the sale and development of approximately 2.66 acres of City owned property located within the north parking lot at the Peoria Sports Complex, and authorize the City Manager to complete all transactions contemplated within the agreements subject to such additional terms and conditions deemed necessary; and b) approve the use of reserves and a budget amendment in the amount of $50,000 from the Half Cent Sales Tax Contingency account 1210-0350-570000 to the Other Professional Services account 1210-0350-520099.

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 83^rd 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. 

June 7, 2022 – Council Executive Session

October 4, 2021 – City issues a Request for Proposals for the P83 District

Staff recommends that the Mayor and City Council a) adopt RES 2022-71 approving a Development Agreement with CBDG Peoria LLC and authorizing the sale of the property described in the Real Estate Purchase Agreement, and for the City Manager to negotiate additional terms and conditions deemed necessary and to sign any documents needed to complete the sale; and b) approve the use of reserves and a budget amendment in the amount of $50,000 from the Half Cent Sales Tax Fund.

The fiscal impacts are net positive to the city.  Proceeds from the sale of the project will offset costs for the public improvements contemplated in the agreement.  The project is also expected to generate new sales tax revenue related to the three new restaurants.