Title
Authorization to Grant LKY Real Estate Fund IV Limited Partnership L.L.L.P (LKY) a Binding Waiver of Enforcement (Waiver) of the Special Permit Provisions for Data Centers (Ordinance S-52436) - District 8
Description
Request authority to grant LKY Real Estate Fund IV Limited Partnership L.L.L.P (LKY) a Binding Waiver of Enforcement (Waiver) of the Special Permit Provisions for Data Centers under Ordinance G-7396.
Report
Summary
Following the City of Phoenix’s adoption of Ordinance G-7396 on July 2, 2025, which established a regulatory framework for data centers, LKY submitted a demand to the City under A.R.S. § 12-1134, asserting that the ordinance diminished the fair market value of its property located at 617 S. 5th Avenue (Parcel No. 112-19-129B).
Parcel Address: 617 S. 5th Avenue
Owner: LKY Real Estate Fund IV Limited Partnership L.L.L.P (LKY)
Representative: Cameron C. Artigue and Lindsay Shube, Gammage and Burnham,PLC
Pursuant to A.R.S. § 12-1134(E), Ordinance G-7396 authorizes the City Council, in its sole discretion, to grant binding waivers of the special permit requirements for data centers. In accordance with this provision, LKY has formally requested such a waiver. The special permit requirements set forth in Ordinance G-7396 were enacted by the City Council to address public health and safety concerns and to mitigate adverse secondary impacts on surrounding neighborhoods, businesses, and residents.
The purpose of the City's requirements are to protect public health and safety. Therefore, the waiver requires the proposed data center to address and mitigate potential health and safety impacts on neighboring properties, including, among other things, fire and public safety threats, hazardous materials, energy use, water use, and noise pollution. The waiver describes requirements for each category to comply with Ordinance G-7396. At the City’s request, LKY has submitted detailed information and committed to measures designed to mitigate the potential impacts of its proposed data center. Specific requirements will be outlined in the Waiver which will be available to the public 24 hours prior to the meeting. However, some requirements may be modified after publishing the waiver.
The Planning and Development Department reviewed these submissions and determined that the waiver request meets all the submittal requirements. They found that LKY’s submittals appear to adequately address the ordinance’s public health and safety objectives. The City Manager reviewed and makes a recommendation to approve the attached Waiver.
Location
Council District: 8
Parcel Address: 617 S. 5th Avenue
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson and the Law Department.