Phoenix subcommittee recommends sale of three Madison Street parcels to Pilgrim's Rest Foundation

The City of Phoenix Economic Development and the Arts Subcommittee voted on Jan. 26, 2026 to recommend City Council approval to sell three aviation-owned parcels on Madison Street to Pilgrim's Rest Foundation, an adjacent institutional landowner, after staff said the foundation's offer exceeds the parcels' April 2024 appraisal.

Ryan Tohill, Community and Economic Development Director, and Thomas Sawyer, Economic Development Program Manager, presented the aviation land reuse strategy for areas west of Phoenix Sky Harbor International Airport and described an FAA review under the Part 163 process that guided reuse and sale conditions for noise-impacted airport land. Sawyer said the three Madison Street parcels are noncontiguous, zoned residential, appraised at $386,000 as of April 2024 and were offered for public sale from Aug. 1 to Aug. 30, 2024. The city received one offer from Pilgrim's Rest Foundation for $450,000; staff recommended sale to the foundation because it is the adjacent majority landowner and the offer exceeded the appraisal.

Sawyer said parcels identified as aviation noise land require an acknowledgment of proximity to Sky Harbor, execution of a navigational easement (as needed) and deed restrictions that prohibit residential use where specified in the FAA determination. He noted that some blocks north of Jefferson were authorized for mixed'use or multifamily under the FAA guidance, but the Madison Street parcels in this grouping cannot be used for residential purposes under the 163 determination.

Councilwoman Stark and other members voiced support for recommending the sale, citing Pilgrim's Rest's community investments and the organization's role as a neighborhood anchor. Councilwoman Pastor moved that the subcommittee recommend City Council approve sale of the city'owned parcels at market'negotiated prices based on the city appraisal to Pilgrim's Rest Foundation; Councilman Robinson seconded. The motion passed on a voice vote with no recorded opposition.

During public comment, Gerald Good (son of former councilman Calvin C. Good) expressed support for Pilgrim's Rest and requested a staff meeting to discuss a separate parcel at 1414 East Jefferson where his family seeks to advance affordable housing. Diane Barker and other public speakers offered comments on downtown design, transit and the entertainment district.

Staff said an RFP process has been used previously in the area but was canceled for lack of responses. Staff told the subcommittee it plans to issue a future RFP for other parcels later in the year, pending staff capacity and hiring, and that responsive proposals will be evaluated by a panel that includes city staff and community representatives before returning recommendations to the subcommittee and Council.