Title
Name Change of Licensee/Leasee on Multiple City Agreements to Clearway Energy, Inc. (Ordinance S-47365)
Description
Request to authorize the City Manager, or his designee, to authorize a Licensee/Leasee name change on Cooling System Pipeline License Agreements 93267 and 130903, Lease Agreement 114706-LSE, and Master Chilled Water Service Agreement 114706-WSA. There is no financial impact to the City of Phoenix.
Report
Summary
On Aug. 24, 2000, the City and Northwind Phoenix, LLC, a Delaware limited liability company, entered into Cooling System Pipeline License Agreement 93267 for underground chilled waterlines. On Jan. 5, 2005, the City and Northwind Phoenix, LLC entered into Lease Agreement 114706-LSE for leased space at the Phoenix Convention Center (PCC), and entered into Master Chilled Water Service Agreement 114706-WSA to provide chilled water services to the PCC. In June 2010, Northwind Phoenix, LLC, was acquired by NRG Energy, Inc., resulting in a formal name change from Northwind Phoenix, LLC, to NRG Energy, Inc. The City was not notified of the acquisition by either party, so the name change was not recorded on these active agreements. On April 29, 2011, the City entered into License Agreement 130903 with NRG Energy, Inc. for installation of solar equipment in exchange for specified advertising rights at the PCC. In August 2018, NRG Energy, Inc. was acquired by Global Infrastructure, and along with this acquisition, it was announced that the company name would change from NRG Energy, Inc. to Clearway Energy, Inc.
City staff and the Licensee/Leasee request to have Cooling System Pipeline License Agreement 93267, Agreement 114706 (both LSE and WSA) and License Agreement 130903 reassigned to Clearway Energy, Inc.
Contract Term
The Cooling System Pipeline License Agreement, executed on June 28, 2000, has an indefinite duration and shall remain in effect until revoked or cancelled per the terms of the license. Lease Agreement 130903 ends on April 28, 2021, and has two available five-year extension options through April 28, 2031. Agreement 114706 (both LSE and WSA) ends on Jan. 4, 2030, with five available five-year extension options through Jan. 4, 2055.
Financial Impact
There is no financial impact to the City of Phoenix.
Concurrence/Previous Council Action
The City Council approved:
- Cooling Systems Pipeline License Agreement 93267 to Northwind Phoenix, LLC on June 28, 2000;
- Lease Agreement 114706 to Northwind Phoenix, LLC on Dec. 15, 2004 (Ordinance S-31602); and
- License Agreement 130903 to NRG Energy, Inc. on April 20, 2011 (Ordinance S-37786).
Department
Responsible Department
This item is submitted by Interim Deputy City Manager John Chan, Deputy City Manager Mario Paniagua, and the Phoenix Convention Center and Street Transportation departments.