The City of Chandler recently approved an ordinance for the
sale of 31.22 acres of municipally-owned land at the southwest corner of
Gilbert and Ocotillo Roads. The site, which was previously intended for a wastewater
treatment plant, was acquired by DeRito
Partners Development Inc. in the amount of $8,647,334.00 ($276,980 per acre
or $6.35 per square foot) and will be
developed with both residential and commercial improvements. Revenue from the
sale of the property will be credited to the water and wastewater operating funds.
Chandler had been contacted by various groups in recent
years regarding a potential sale of the property; however it was only until
last year that officials began to initiate the process. To determine the
feasibility of selling the property, Chandler opened a Request for Proposal
(RFP), which accepted submittals between August 30, 2013, and October 29, 2013.
The RFP enabled Chandler to select applicable proposals and to incorporate
stipulations within the structure of both the sale and proposed build-out of
the site. Stipulations mentioned in the City Council memo from February 27,
2014, read as follows:
- Purchase of the entire parcel, not just a portion of the site
- The development of a significant, anchored commercial center
- The development of a quality project that is consistent and compatible with existing and other planned projects in the immediate area
- An aggressive timeline for developing at least the commercial component of the development
View the original city document with purchase agreement here
Conceptual site plan of DeRito development on southwest corner of Ocotillo and Gilbert Roads
|
The RFP received a total of seven proposals - from which, 4
were eliminated. Out of the top three proposals, another was rejected as it
solely envisioned the site for commercial use. A committee of City staff
eventually recommended DeRito as the winning proposer, as the proposal proved the best combination of
short-term and long-term financial benefit to the city. DeRito will place $100,000
into an escrow account within five days of the approval, and has agreed to
close the sale by December 31, 2014 (as per outlined in purchase agreement). In
addition, DeRito will be responsible for obtaining all of the necessary
entitlements in a timely manner. It
was mentioned at the City Council meeting, both by a representative of DeRito
and by the Brown Group (runner up proposer), that Fry’s Food & Drug is
likely to become the anchor tenant of the commercial component. No specific
information was provided in relation to residential portion of the project.
By:
Cody Weisel
Planning & Zoning Analyst
Vizzda.com
By:
Cody Weisel
Planning & Zoning Analyst
Vizzda.com
No comments:
Post a Comment