Title
Authorization to Amend License with Cemex Construction Materials South, LLC (Ordinance S-45908)
Description
Request authorization for the City Manager, or his designee, to amend License 118477 between the City of Phoenix and Cemex Construction Materials South, LLC (Cemex) to extract 10 feet deeper than the current 30-foot maximum depth and add an option to extend the license term for a one-year period. Further request authorization for the City Treasurer to accept funds related to this item.
Report
Summary
The City-owned property at 4815 S. 67th Ave. is approximately 78.22 acres of undeveloped land licensed to Cemex for material extraction. The current license, which expires Feb. 14, 2020, allows Cemex to mine to a 30-foot maximum depth. Cemex is nearing the 30-foot depth and has requested to amend the license to increase the extraction depth by an additional 10 feet. Cemex estimates the additional 10 feet has approximately one million tons of sand and gravel that will take 10 to 12 months to extract. The royalty rate is $1.00 per ton.
Contract Term
The current license expires Feb. 14, 2020. This amendment would add one, one-year option to extend.
Financial Impact
Based on estimated material, potential revenue at $1.00 per ton is approximately $1 million, plus applicable taxes.
Concurrence/Previous Council Action
This contract was approved by Ordinance S-32615, adopted Jan. 4, 2006. It was amended by Ordinance S-38304, adopted Nov. 16, 2011; Ordinance S-42235, adopted Jan. 6, 2016; and Ordinance S-42280, adopted Feb. 3, 2016.
Location
4815 S. 67th Ave., identified by assessor parcel number 104-66-001.
Council District: 7
Department
Responsible Department
This item is submitted by Acting Deputy City Manager Toni Maccarone and the Parks and Recreation and Finance departments.