Title
Agreement with Arizona State Land Department to Access Future Dove Valley Drainage Culvert Located at Dove Valley Road Between 43rd Avenue and Dead Man's Wash (Ordinance S-47741)
Description
Request to authorize the City Manager, or his designee, to negotiate and enter into an access agreement and any other agreements as necessary (Agreements), with the Arizona State Land Department (ASLD), or its City-approved designee, to access the future Dove Valley drainage culvert located on the north side of Dove Valley Road between 43rd Avenue and Dead Man's Wash for potential inspections and maintenance. Further request the City Council to grant an exception pursuant to Phoenix City Code 42-20 if necessary to authorize inclusion in the documents pertaining to this transaction of indemnification and assumption of liability provisions that otherwise would be prohibited by Phoenix City Code 42-18, as ASLD's form documents include such provisions. There is no impact to the General Fund as a result of this request.
Report
Summary
In December 2020, Taiwan Semiconductor Manufacturing Company (Developer) purchased approximately 1,100 acres located between Highway 74 to the north; Loop 303 to the south; 43rd Avenue to the east; and Dead Man’s Wash to the west, for a planned semiconductor manufacturing campus which is partially in a floodplain. To shrink the floodplain and maximize the use of its site, the Developer proposed modifying the existing floodplain designated by the Federal Emergency Management Agency (FEMA), by constructing a Dove Valley drainage culvert to be located on the north side of the new Dove Valley Road. The Developer's Engineer of Record submitted the Conditional Letter of Map Revision (CLOMR) to FEMA showing the proposed changes. In response, one of FEMA’s preliminary requirements stipulated a maintenance and operation plan to guarantee the lifetime integrity of the new drainage culvert.
City staff's request is to obtain access to the drainage culvert as part of FEMA’s required maintenance and operation plan, as referenced in the Developer's Operations Maintenance Path to City Adoption with FEMA CLOMR Letter.
Subject to City Council approval, the following major business terms have been negotiated with the ASLD, as the property owner, and would be implemented through the Agreements.
- Developer will obtain separate access from the ASLD to construct the new Dove Valley drainage culvert located on the north side of Dove Valley Road between 43rd Avenue and Dead Man’s Wash. Construction of the drainage culvert will be coordinated with the construction of Dove Valley Road, and is anticipated to commence in July 2021.
- City will obtain separate access from the ASLD to access the new Dove Valley drainage culvert located on the north side of Dove Valley Road between 43rd Avenue and Dead Man’s Wash. The City may, but is not required to, inspect and maintain, at its sole discretion, drainage facilities on, or under, the land in the drainage easements.
The redevelopment of the site by the Developer is essential to manufacture its five nanometer semiconductor chips at its campus, and is an important economic development opportunity that will create several thousand new jobs over time for the community, and will yield significant financial and public benefits for the City of Phoenix.
Contract Term
The City's access agreement with ASLD will be for a term of 100 years.
Financial Impact
There is no impact to the General Fund as a result of this request.
Location
Generally located on the north side of Dove Valley Road between 43rd Avenue and Dead Man's Wash.
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Managers Ginger Spencer, Mario Paniagua and Karen Peters, and the Community and Economic Development, Street Transportation and Public Works departments.