Title
Foreign-Trade Subzone Expansion Application for Lucid Motors USA, Inc. (Resolution 21829)
Description
Request to authorize the City Manager, or his designee, to submit a subzone expansion application to the Foreign-Trade Zones Board of the U.S. Department of Commerce for Lucid Motors USA, Inc. (Lucid). Also request authorization to amend the Foreign-Trade Zone (FTZ) Operations Agreement with Lucid, to amend the Intergovernmental Agreement (IGA) with the City of Casa Grande, to enter into an IGA with the City of Tempe, and to enter into all necessary and appropriate agreements and other documents. Further request authorization for the City Treasurer to accept funds related to this item. The City will incur no costs associated with this request.
Report
Summary
The City of Phoenix, as Grantee of FTZ 75, is authorized to apply for boundary modifications to its existing foreign-trade subzones. Lucid has requested a minor boundary modification to expand their existing Subzone 75N in Casa Grande to add the following two properties it leases at 2592 E. Hanna Road, Casa Grande consisting of 10.6 acres, and 1115 W. Alameda Drive, Tempe consisting of 17 acres, resulting in a net increase in total acreage from 496 acres to 524 acres.
The cities of Casa Grande and Tempe have provided to the City of Phoenix letters of support for the FTZ expansion application. The City of Phoenix will amend the IGA with the City of Casa Grande and will enter into an IGA with the City of Tempe to add the new properties and to evidence conditions of support of the subzone expansion application for the Casa Grande and Tempe sites, and to outline the cities' responsibilities to one another. An amendment to the FTZ Operations Agreement with Lucid will be necessary to add the proposed additional acreage.
The activities to be performed in the expanded Subzone 75N include assembly and distribution. Lucid will be required to pay an application fee to the City of Phoenix.
Contract Term
The term of the contract with Lucid will be through Jan. 31, 2040.
Financial Impact
The City will incur no costs associated with this request.
Concurrence/Previous Council Action
City Council approved and adopted Resolution 21755 on June 19, 2019 to submit an FTZ application for Lucid, to enter into an FTZ Operations Agreement and to enter into an IGA with Casa Grande.
Location
2592 E. Hanna Road, Casa Grande, AZ 85222 and 1115 W. Alameda Drive, Tempe, AZ 85282
Council District(s): Out of City
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Community and Economic Development Department.