Item Coversheet
CITY OF PEORIA, ARIZONA
COUNCIL COMMUNICATION
 
Agenda Item: 13R. 


Date Prepared:  3/18/2024 Council Meeting Date: 4/2/2024

TO:Mike Faust, City Manager 
THROUGH:
Mike Faust, Deputy City Manager 
FROM:  Jennifer Stein, Economic Development Services Director 
SUBJECT:
Economic Development and Lease Agreement with Jefferson House, LLC 

Purpose:

Discussion and possible action to adopt RES. 2024-21 authorizing the City Manager to execute an Economic Development Agreement and a Lease Agreement with Jefferson House, LLC for the purpose of constructing and space for restaurants, retail, and event rental.

Summary:

In alignment with the City’s Economic Development and Revitalization Strategies, Peoria’s Downtown has long been identified as an important revitalization and redevelopment priority.  Over the last several years, the City has continued to make meaningful investments and improvements to reposition Downtown for redevelopment by strategically assembling land and refining redevelopment concepts. These efforts have been informed through community input and have helped shape the development and amenities the city will offer through a private/public partnership. 

 

The managing members of the Jefferson House originated the successful Churchill courtyard in Downtown Phoenix. As a proven successful concept, they want to expand to include a location in the West Valley. They will be partnering with the owner of  Driftwood Coffee who has been a champion of reinvesting in Downtown Peoria, and has opened several previous businesses delivering amenities residents are seeking. Together these partners are seeking to expand their offering and bring the same family-friendly event gathering venue to Downtown Peoria.

 

The project will reside at the Northwest corner of 83rd Avenue and Jefferson Street. The City acquired the property as part of its revitalization efforts for the Downtown Peoria area. The building size will be approximately 21,000 square feet.

 

The Parties intend that the City will construct improvements as generally depicted on a Site Plan. The City will have final authority over all design and construction decisions. Upon completion of the project, Jefferson House, LLC will lease the property from the City by way of a separate Lease Agreement.

 

The Economic Development Agreement will result in significant direct and indirect benefits to the city and its residents. The lease is a five-year term renewable with an additional five years all within a scale-up rent structure. The tenant has the option to purchase the building upon commencement of subleasing.

Previous Actions/Background:

A total of three Downtown working group meetings have been held. Dates are as follows: September 6, 2023; November 1, 2023; and February 21, 2024.

Staff Recommendation:

Recommendation to adopt RES. 2024-21 and APPROVE the (a) Economic Development Agreement; and the (b) Lease Agreement with Jefferson House, LLC.

Fiscal Analysis:

The costs associated with this project have been identified and budgeted within the FY2024 Capital Improvement Program (EN00646 – Downtown Redevelopment).

ATTACHMENTS:
Description
Resolution No. 2024-21
Jefferson House Economic Dev. Agreement
Jefferson House Lease
Contact Name and Number:  
Jennifer Stein, Economic Development Services Director, (623) 773-7338