Title
Foreign-Trade Zone Application for Lucid Motors (Resolution 21755)
Description
Request to authorize the City Manager, or his designee, to submit a Minor Boundary Modification application to the Foreign-Trade Zones Board of the U.S. Department of Commerce for Lucid Motors (Lucid). Also, request authorization to enter into a Foreign-Trade Zone (FTZ) Operations Agreement (Agreement) and any other necessary documentation with Lucid or City-approved nominee, and to enter into an Intergovernmental Agreement (IGA) with the City of Casa Grande. Further request authorization for the City Treasurer to accept funds related to this item.
Report
Summary
The City of Phoenix, as Grantee of FTZ No. 75, has the right and authority to apply for FTZ site designations. Lucid Motors manufactures next generation electric vehicles. Lucid has requested an FTZ Subzone designation for property it leases at the southwest corner of Thornton and Peter roads in Casa Grande, Ariz., where it plans to construct a 1.5 million square-foot vehicle manufacturing facility. The proposed Subzone site includes approximately 496 acres.
The City of Casa Grande has provided to the City of Phoenix a Resolution indicating their support of Lucid’s FTZ application for the site in Casa Grande. With Council authorization, the City of Phoenix will enter into an IGA with the City of Casa Grande to evidence conditions of Casa Grande’s support of the subzone application and outline the cities’ responsibilities to one another.
City staff will prepare an Operations Agreement with Lucid 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 of Phoenix against claims arising from their FTZ operations.
- Pay to the City of Phoenix all fees pursuant to the current zone fee schedule.
The Agreements will contain other terms and conditions deemed necessary or appropriate.
Contract Term
The term of the agreement, if approved, will be for 20 years unless the FTZ designation terminates sooner. Provisions of the contract may include an option to extend for as long as the FTZ designation exists which may be exercised by the City Manager or his designee.
Financial Impact
The City will incur no costs associated with Lucid’s application.
Location
Southwest corner of Thornton and Peter roads, Casa Grande, Ariz.
Council District: Out of City
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Community and Economic Development Department.