| AGENDA ITEM #: 5. DATE: 04/26/2021 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | APPROVE SECOND AMENDMENT TO THE INFRASTRUCTURE DEVELOPMENT AGREEMENT FOR PROJECT 10-11 |
| STAFF PRESENTER(S): | Roric Massey, City Attorney |
SUMMARY:
Council to consider approval of the Second Amendment to the Infrastructure Development Agreement for the Project 10-11 with Microsoft Corporation which provides terms for the issuance of building permits and construction of Phase II of the development.
Recommendation:
ADOPT RESOLUTION NO. 2021-2152 APPROVING THE SECOND AMENDMENT TO THE INFRASTRUCTURE DEVELOPMENT AGREEMENT FOR PROJECT 10-11; DIRECTING THE CITY MANAGER TO EXECUTE THE AMENDMENT DOCUMENT; AUTHORIZING AND DIRECTING ACTIONS; AND PROVIDING FOR AN EFFECTIVE DATE. (Roric Massey, City Attorney)
FISCAL IMPACT:
This Second Amendment to the Infrastructure Development Agreement for Project 10-11 does not create any new fiscal impact in terms of expenditures required of the City.
BACKGROUND AND PREVIOUS ACTIONS:
Microsoft owns approximately 279 acres of real property within the City of Goodyear generally located between the north side of Broadway Road and the south side of MC-85 and extending from east of Bullard Avenue to west of Litchfield Road and is currently developing the property under the name PHX 10-11. Microsoft is developing the property in phases. The first phase of the development of the Property will consist of the construction of one building that is approximately 250,000 square feet (the "First Phase Development").
On June 27, 2019, Microsoft and the city entered into a certain Infrastructure Development Agreement for Project 10-11 recorded in the official records of Maricopa County, Arizona at recording number 2019-0486224 (hereinafter referred to as the “PHX 10-11 IDA). The PHX 10-11 IDA addressed certain requirements regarding the development of the property, including infrastructure improvements that were to be completed before any certificate of completion or certificate of occupancy would be issued for the First Phase Development.
On July 13, 2020, Microsoft and the city entered into the First Amendment to Infrastructure Development Agreement for Project 10-11 recorded in the official records of Maricopa County, Arizona at recording number 20200625939 (hereinafter referred to as the “First Amendment”), which addressed the timing of certain portions of the Phase One Improvements by Owner and the completion of the Raw Water Line by the City. Together, the PHX 10-11 IDA and the First Amendment are referred to herein as the “Agreement.”
On June 27, 2019, Microsoft and the city entered into a certain Infrastructure Development Agreement for Project 10-11 recorded in the official records of Maricopa County, Arizona at recording number 2019-0486224 (hereinafter referred to as the “PHX 10-11 IDA). The PHX 10-11 IDA addressed certain requirements regarding the development of the property, including infrastructure improvements that were to be completed before any certificate of completion or certificate of occupancy would be issued for the First Phase Development.
On July 13, 2020, Microsoft and the city entered into the First Amendment to Infrastructure Development Agreement for Project 10-11 recorded in the official records of Maricopa County, Arizona at recording number 20200625939 (hereinafter referred to as the “First Amendment”), which addressed the timing of certain portions of the Phase One Improvements by Owner and the completion of the Raw Water Line by the City. Together, the PHX 10-11 IDA and the First Amendment are referred to herein as the “Agreement.”
STAFF ANALYSIS
Under the terms of the Agreement, the City must expressly approve of any building permits to be issued on the Property, other than the building permits, for the Phase One Development. The Owner’s Site Plan contemplates the development of the Phase Two Development, which is the construction of one building of approximately 250,000 square feet and Microsoft’s desires to obtain building permits for the same.
Microsoft will agree to limit the industrial discharge from the Phase One Development and the Phase Two Development to 500,000 gallons per day and prior to the issuance of a temporary or final certificate of occupancy for the Phase Two Development, install a Discharge Control System to ensure that such limit is not exceeded. Microsoft will further reimburse the City for the installation of a flow monitoring meter located outside of the Microsoft property to provide the City real-time electronic access to instantaneous and aggregate daily flow data.
The City will agree to obtain the additional Carollo Study to address the water supply and identify any Additional Necessary Utility Infrastructure Improvements required for future buildings on the Property at Microsoft’s sole cost and expense.
The City desires to amend the Agreement, with this Second Amendment to the Infrastructure Development Agreement for Project 10-11, and allow for the issuance of building permits and for Microsoft to begin construction for the Phase Two Development. During this time, the City and Microsoft work together to approve the Discharge Control System and the additional Carollo Study and identify the additional necessary utility infrastructure improvements for other future buildings on the property.
Microsoft will agree to limit the industrial discharge from the Phase One Development and the Phase Two Development to 500,000 gallons per day and prior to the issuance of a temporary or final certificate of occupancy for the Phase Two Development, install a Discharge Control System to ensure that such limit is not exceeded. Microsoft will further reimburse the City for the installation of a flow monitoring meter located outside of the Microsoft property to provide the City real-time electronic access to instantaneous and aggregate daily flow data.
The City will agree to obtain the additional Carollo Study to address the water supply and identify any Additional Necessary Utility Infrastructure Improvements required for future buildings on the Property at Microsoft’s sole cost and expense.
The City desires to amend the Agreement, with this Second Amendment to the Infrastructure Development Agreement for Project 10-11, and allow for the issuance of building permits and for Microsoft to begin construction for the Phase Two Development. During this time, the City and Microsoft work together to approve the Discharge Control System and the additional Carollo Study and identify the additional necessary utility infrastructure improvements for other future buildings on the property.