Economic Development and the Arts Subcommittee - 2026-01-26
Meeting Intelligence Preview
Meeting Summary
The Economic Development and the Arts Subcommittee approved the sale of three city-owned aviation noise land parcels on Madison Street to Pilgrim's Rest Foundation Inc. for $450,000, exceeding the $386,000 appraisal. The committee also discussed upcoming RFPs for aviation land reuse parcels on Washington Street and potential affordable housing development at 1414 East Jefferson Street with the Good family.
Key Decisions (1)
Sale of Aviation Noise Land Parcels on Madison Street to Pilgrim's Rest Foundation
Approved sale of three noncontiguous city-owned parcels on Madison Street (Block A of aviation land reuse strategy) to Pilgrim's Rest Foundation Inc. for $450,000, exceeding the April 2024 appraisal of $386,000. Parcels are zoned R-5 residential but cannot include residential use due to FAA 163 determination restrictions. Pilgrim's Rest is the majority adjacent landowner and operates a community campus at 1401 East Jefferson Street serving over 4,000 congregants.
Development Activity (3)
Pilgrim's Rest Campus Expansion
Three noncontiguous parcels totaling approximately $450,000 purchase price. Future use to be compatible with existing campus operations including worship facility, ASU Charter School Partnership, wellness center, and social service programs.
Mixed-Use Development Site on Washington Street
Site rezoned to Walkable Urban Code 5-7 in 2023. Residential mixed-use allowed. RFP to require proposers demonstrate completion of at least one vertical mixed-use development of at least three stories in last seven years.
Affordable Housing at 1414 East Jefferson Street
Previous RFP for mixed-use, mixed-income residential canceled in August 2021 due to lack of developer response. City has authority for direct negotiations. Good family seeking to meet with staff regarding potential affordable housing development.
Market Signals (3)
Housing Demand
Affordable housing development in the East Lake Park neighborhood near Sky Harbor Airport remains a priority, with the Good family actively seeking developer partners to bring mixed-income residential to 1414 East Jefferson Street.
Commercial Demand
Previous RFP for mixed-use development near Sky Harbor Airport received no developer responses in 2021, suggesting challenging market conditions for aviation-adjacent parcels with residential restrictions.
Infrastructure
FAA's 2022 Part 163 determination approved disposal or redevelopment of 427 aviation noise land parcels - the largest such determination in FAA history - creating significant land inventory for non-residential development west of Sky Harbor Airport.