Grant a Fiber Optic Easement across city-owned right-of-way commonly known as South 141st Ave to facilitate a Fiber Optic Conduit Duct Bank containing fiber optic lines from the Stream Data Centers Property to the Microsoft Property.

Approve the execution of a new Fiber Optic Easement Agreement between City of Goodyear and SDC PHX I, LLC (Stream Data Centers) granting an easement under two sections of South 141st Avenue. (Kevin Spicer, Real Estate Services Specialist)

There is no fiscal impact to the City by granting the two easements needed for the construction of conduit duct banks under sections of South 141st Ave. The construction of the conduit duct bank by the Grantee will generate one-time revenue for the city through the payment of permits and construction sales tax. The City will continue maintaining the right-of-way.

SDC PHX I, LLC (Stream Data Centers) has contracted with Microsoft to provide bulk data stream service to the Microsoft property. Stream Data Centers is located on the west side of South 141st Avenue south of MC-85 and Microsoft’s property is located on the east side of South 141st Avenue south of MC-85. To deliver this service, Stream Data Centers must construct conduit duct banks and install fiber optic lines within its property and within Microsoft’s property, under public utility easements on both the Stream Data Centers and Microsoft properties, and under two sections of South 141st Avenue to Microsoft’s property.  The construction of the conduit duct banks under South 141st Avenue requires an easement from the city.

As set forth above, the conduit duct banks necessary for Stream Data Centers to provide service to Microsoft will be constructed under city right-of-way and public utility easements.  Because of staff’s concerns about the risk of damage to the fiber optic lines installed within the conduit banks that are to be installed under the city’s public utility easements and South 141st Avenue and the disruption of service to Microsoft, the agreement granting the easement agreement includes construction requirements that will mitigate the risk of damage and includes indemnification provisions against any claims asserted against the city from any damage to the conduit banks and fiber optic lines.

The fiber optic data stream from Stream Data Centers is necessary for the development of the Microsoft Property and its future business operations. Accordingly, staff is recommending the city grant Stream Data Centers an easement over the two sections of South 141st Avenue pursuant to the terms of the Fiber Optic Easement Agreement attached hereto.