Title
Authorization to Grant Sheely Ted D / ET AL c/o William Sheely / ET AL (Sheely Center) a Binding Waiver of Enforcement (Waiver) of the Special Permit Provisions for Data Centers (Ordinance S-52435) - District 5
Description
Request authority to grant Sheely Ted D / ET AL c/o William Sheely / ET AL (Sheely Center) a Binding Waiver of Enforcement (Waiver) of the Special Permit Provisions for Data Centers under Ordinance G-7396. The Council is considering the Planning Hearing Officer's recommendation regarding rezoning application PHO-1-25--Z-29-12-7(5) for this development by a public hearing held on the same council agenda as this item. This item must be heard following that hearing.
Report
Summary
Following the City of Phoenix’s adoption of Ordinance G-7396 on July 2, 2025, which established a regulatory framework for data centers, Sheely Center submitted a demand to the City under A.R.S. § 12-1134, asserting that the ordinance diminished the fair market value of its property located at Parcel No. 102-34-002E.
Parcel Address: 2209 N. 99th Ave.
Owner: Sheely Ted D / ET AL c/o William Sheely / ET AL (Sheely Center)
Representative: Jason Morris, Withey Morris Baugh, P.L.C. and Andrew Gould, Holtzman Vogel Baran Torchinsky & Josefiak PLLC
Pursuant to A.R.S. § 12-1134(E), Ordinance G-7396 authorizes the City Council, in its sole discretion, to grant binding waivers of the special permit requirements for data centers. In accordance with this provision, Sheely Center has formally requested such a waiver. The special permit requirements set forth in Ordinance G-7396 were enacted by the City Council to address public health and safety concerns and to mitigate adverse secondary impacts on surrounding neighborhoods, businesses, and residents.
The purpose of the City's requirements are to protect public health and safety. Therefore, the waiver requires the proposed data center to address and mitigate potential health and safety impacts on neighboring properties, including, among other things, fire and public safety threats, hazardous materials, energy use, water use, and noise pollution. The waiver describes requirements for each category to comply with Ordinance G-7396. At the City’s request, Sheely Center has submitted detailed information and committed to measures designed to mitigate the potential impacts of its proposed data center. Specific requirements will be outlined in the Waiver which will be available to the public 24 hours prior to the meeting. The requirements may be modified after the waiver is published.
The Planning and Development Department reviewed these submissions and determined that the waiver request meets all the submittal requirements. They found that Sheely Center’s mitigation commitments appear to adequately address the ordinance’s public health and safety objectives. The City Manager reviewed and makes a recommendation to approve the attached Waiver request.
Location
Southeast corner of 99th Avenue and Thomas Road
Council District: 5
Parcel Address: 2209 N. 99th Ave.
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson and the Law Department.