Title
Foreign-Trade Zone Application for Hayward Industries, Inc. (Resolution 21811)
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 Hayward Industries, Inc. Also, request authorization to enter into a Foreign-Trade Zone (FTZ) Operations Agreement (Agreement) and any other necessary documentation with Hayward Industries, Inc., or City-approved nominee. Further request authorization for the City Treasurer to accept and the City Controller to disburse 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. Hayward Industries, Inc. manufactures cutting edge, technologically advanced commercial and residential pool equipment, and is headquartered in New Jersey. The company has requested a FTZ designation for the property it leases at 8175 W. Buckeye Road in Phoenix where it plans to package and distribute pool equipment. The proposed FTZ site consists of approximately 21 acres with one building of approximately 359,000 square feet. Consistent with City of Phoenix policy, Hayward Industries does not intend to seek property tax reclassification for existing property pursuant to Arizona law (A.R.S. 42-12006).
City staff will prepare a FTZ Agreement with Hayward Industries 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 against claims arising from their FTZ operations.
- Pay to the City all fees pursuant to the current zone fee schedule.
The Agreement will contain such 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 designee.
Financial Impact
The City will incur no costs associated with Hayward’s application.
Location
8175 W. Buckeye Road
Council District: 7
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Community and Economic Development Department.