Glendale City Council on June 24 approved entering a 25-year professional services agreement with Vi Resorts LLC to manage the city-owned surface parking lot commonly called the “Black Lot,” with an initial guaranteed payment of $500,000 in year one and an annual escalator tied to the consumer price index for the Phoenix region or 3%, whichever is lower. The contract begins Feb. 1, 2026, and includes options for the city to renew for two additional 10-year periods.

The vote followed a lengthy staff presentation and an extended public and council debate focused on projected revenue potential, contract terms and perceived process shortcomings. Levi Gibson, director of budget and finance, told the council the RFP drew four responses, an evaluation panel recommended Vi Resorts LLC as the most responsive proposer, and “These services will be provided at no cost to the city. Vi Resorts LLC has agreed to pay the city a fixed fee for the term of the contract ... with initial amount of $500,000 for year 1 of the agreement.”

Why it matters: Several council members and public speakers said the guaranteed payment understates the value of a 4,011-space surface lot located near the entertainment district and State Farm Stadium, and that alternative proposals offered revenue‑share models that the city rejected. Council members who opposed the award said the city may be leaving material revenue on the table; supporters said the guaranteed payment reduces city risk and provides predictable revenue where previously there was none.

Concerns raised during public comment and council discussion included: that Vi Resorts’s flat-fee approach effectively yields a lower net payment to the city after maintenance set‑asides described by public commenters; claims that competing bids (identified in public comment as “Premium Parking Service LLC” and other respondents) proposed revenue-sharing models that could produce higher returns; and that required insurance and fidelity/cyber liability limits described in the RFP were not included in Vi Resorts’ submitted proposal, a point stressed by council critics during debate. Roy Garey, speaking during public comment, said the award was “a sweetheart deal” and compared the net amount the city would receive to alternative proposals. Morning Star Bloom of Worker Power Institute told the council she had obtained records via public records request and said Premium Parking Service projected higher returns to the city.

Council action and votes: Councilmember Millner moved to approve the award (motion: approve RFP 25‑46; mover: Councilmember Millner; second: Councilmember Baldenegro). Roll call included these recorded votes in the transcript: Leandro Baldenegro — Aye; Lupe Conchas — No (she said her “vote will be no … because of the RFP process”); Diana Guzman — Aye; (Councilmember) Melner — Aye; Bart Turner — No (explained concerns and moved earlier to table); Vice Mayor Lauren Tomachoff — No. Mayor Jerry Wires recorded a yes, and the motion carried by a majority vote.

Discussion versus direction versus decision: Council debate included a failed motion to table the item (mover: Councilmember Turner), extended public comment and multiple councilmembers’ statements that they wanted more time or a different contracting approach. The approved motion was a formal award; council did not direct staff to reopen the RFP or renegotiate the terms at the meeting.

Clarifying details recorded in the meeting: the RFP (25‑46) was advertised Feb. 19, 2025, four proposals were received March 20, 2025, the initial contract term is 25 years starting Feb. 1, 2026, with two optional 10‑year renewals; the Black Lot contains 4,011 parking spaces; staff said Vi Resorts will pay a fixed fee (initial year $500,000) and that the fee will escalate annually by CPI or 3% (whichever is lower). Members expressed differing interpretations of who would pay maintenance and whether $100,000 maintenance set‑asides were part of the final agreement — staff stated the city will receive the full $500,000 and that prior proposals for set‑asides were rejected.

Background and next steps: Staff said no protests were received during the procurement process and the evaluation panel recommended Vi Resorts as most responsive. The contract start date is Feb. 1, 2026; the council did not vote at this meeting to reopen the procurement or seek a different revenue model.

Ending: The award resolves a near-term question about management of the Black Lot but leaves open council and public debate over whether a long-term, fixed-fee contract was the best approach for maximizing public revenue from a high-demand surface parking asset.