Title
Foreign-Trade Zone Application for Katerra, Inc. (Resolution 21528)
Description
Request a Resolution to authorize the City Manager, or his designee, to submit a Minor Boundary Modification application to the Foreign-Trade Zones (FTZ) Board of the U.S. Department of Commerce for Katerra, Inc., a Delaware corporation. Also, request authorization to enter into all necessary and appropriate agreements and other documentation with Katerra, Inc., or City-approved nominee.
Report
Summary
The City of Phoenix, as Grantee of FTZ No. 75, has the right and authority to apply for foreign-trade zone site designations. Katerra, Inc. (Katerra), is a technology company that optimizes development, design and construction of buildings. Katerra has requested designation of a Usage-Driven FTZ site for the property it leases located at 624 N. 44th Ave., where it plans to manufacture building construction commodities to support the U.S. building industry. The proposed Usage-Driven FTZ site consists of approximately 20 acres with one building of approximately 240,000 square feet. Katerra does not intend to seek property tax reclassification for existing property within the City of Phoenix pursuant to Arizona law (A.R.S. 42-12006).
City staff will prepare a Foreign-Trade Zone Operations Agreement with Katerra requiring the company to:
- Comply with U.S. Department of Commerce Foreign-Trade Zones Board standards;
- Maintain record keeping satisfactory to the U.S. Customs and Border Protection;
- Obtain business bonding and insurance satisfactory to the City and the U.S. Customs and Border Protection;
- Indemnify the City against claims arising from their FTZ operations; and
- Pay to the City all fees pursuant to the current zone fee schedule.
The Agreement will contain such other terms and conditions deemed necessary or appropriate.
Financial Impact
The City will incur no costs associated with Katerra's application.
Location
The proposed FTZ site is located at 624 N. 44th Ave.
Department
Responsible Department
This item is submitted by Deputy City Manager Paul Blue and the Community and Economic Development Department.