Title
Authorization to Amend Language in Foreign-Trade Zone Operations Agreement for Microchip Technology, Inc. (Ordinance S-43741)
Description
Request an ordinance to authorize the City Manager, or his designee, to amend language in the Foreign-Trade Zone Operations Agreement for Microchip Technology, Inc., to extend the initial term of the agreement up to 20 years, and to make any other necessary minor changes.
Report
Summary
As Grantee of Phoenix Foreign-Trade Zone (FTZ) 75, the City of Phoenix executes Operations Agreements with all FTZ operators to outline respective responsibilities relative to operating a FTZ. The initial term of each operations agreement is twenty years and may be extended annually each year thereafter. The initial Operations Agreement for Microchip Technology will expire on Aug. 27, 2017. To streamline the contract extension process, staff recommends amending the contract language to extend the initial term for another 20 years. All other provisions of the original Operations Agreement shall control and remain valid.
Contract Term
Upon approval of this request, the initial term of the contract shall be extended for an additional 20 years. Thereafter, the contract may be extended annually on the same terms and conditions as set forth in the Operations Agreement.
Financial Impact
The City will incur no costs associated with this request.
Location
Microchip's Foreign-Trade Zone site is located at 2355 W. Chandler Blvd. in Chandler, and 1200 S. 52nd St. and 2100 W. 14th St. in Tempe.
Department
Responsible Department
This item is submitted by Deputy City Manager Paul Blue and the Community and Economic Development Department.