The City of Phoenix is planning to give a developer an $8,000,000 public subsidy.  We propose that, as a public benefit in exchange for that subsidy, 5% of the building be workforce housing, offered at half-price, for the duration of the subsidy.

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Downtown Phoenix is growing, with the number of residents expected to increase by 60% in the next two years.  With that kind of interest in the area, rents are going up quickly; we are seeing it already.  Due to this, if City Hall doesn't leverage opportunities to ensure workforce housing options and affordable rents, many think downtown will become largely for the well-off in only 5-10 years.  We cannot allow downtown to be just for the rich -- we must preserve income diversity in our community as it grows.

Meanwhile, the $36M Roosevelt Derby development is a 19-story apartment proposal in downtown (at 2nd St & McKinley) which plans to lease its 400-sqft units for about $1200/month.  It's a good design, but it's asking City Hall for a GPLET (i.e. public subsidy) worth over $8,000,000.

We believe public subsidies should garner public benefits.  It would be a missed opportunity and an unfair use of public funds if we don't receive a meaningful public benefit in return.  So we petition the City of Phoenix to negotiate for 5% of the units to be offered at half price for the duration of the GPLET.

More information on the project can be found here:
http://downtowndevil.com/2016/02/04/77179/micro-apartment-project-may-receive-property-tax-incentive/