Title
Authorization to Amend Language in Foreign-Trade Zone Operations Agreement for SUMCO Southwest Corporation (Ordinance S-43739)
Description
Request to authorize the City Manager, or his designee, to amend language in the Foreign-Trade Zone Operations Agreement for SUMCO Southwest Corporation to extend the initial term of the agreement up to 20 years.
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 20 years and may be extended annually each year thereafter. The initial Operations Agreement for SUMCO will expire on July 21, 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.
SUMCO intends to maintain its FTZ designation indefinitely. All other terms of the Operations Agreement will remain the same.
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
SUMCO's Foreign-Trade Zone site is located at 19801 N. Tatum Blvd.
Department
Responsible Department
This item is submitted by Deputy City Manager Paul Blue and the Community and Economic Development Department.