City Council | Regular Meeting - September 17, 2024

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I call the September 17 2024 city
council regular meeting to order uh city
clerk Ben Lane please conduct the roll
call thank you mayor mayor David Ortega
pres vice mayor Barry
Graham here council members tamy caputi
here Tom Durham here Betty Janet here
Kathy Littlefield here and Salange
Whitehead here acting city manager Bill
Murphy here acting City attorney Louis
Santa president City Treasurer Sonia
Andrews here acting City auditor L KF
here and the clerk is present thank you
mayor excellent we have Scottdale police
Sergeant sha Ryan and detective Dustin
Patrick um as well as firefighter Jake
Jones should anyone need assistance
let's begin with the Pledge of
Allegiance I'll call on councilwoman
Betty
jedge Ali to
of the United States of America and to
the rep for it stands one nation under
God indivisible with libery and justice
for
all well at uh at this time we draw
attention to the ongoing Wars in foreign
countries as they fight to protect their
democracy and freedom
also we keep in mind our own military
service members at home and deployed
let's keep them in our thoughts as we
reflect and join me in a reflection of
Silence
thank
you well um this today is actually US
Constitution Day that's the foundation
of our government federal state and
certainly local uh government we also
celebrate Hispanic Heritage Month and uh
we have many members of the Scots Dale
uh employee group that serve uh our city
so I would like to U um call you forward
as right after I read this proclamation
in honor of Hispanic Heritage
Month whereas the United West whereas
the United Mexican states celebrate
Independence Day on September 16th and
September 15th is the official inde
dependence stay in Costa Rica El
Salvador Guatemala Honduras and
Nicaragua which also gained independence
from Spain in
1821 and whereas each year Scottdale
observes National Hispanic Heritage
Month understanding that this region was
originally Colonial Spain and part of
Mexico until
1821 to
1848 and whereas our nation and the
State of Arizona are enriched by
Hispanic American attributes such as
resilient indigenous Traditions deep
Faith Family Values patriotism strong
work ethic and love of the Arts and
sports and whereas the city of Scottdale
celebrates the culture and history of
Hispanic Americans and Latino culture
which contributes significantly to the
Allure of Scot scale the city of
Scottsdale and our partners are
presenting Dia de muos events including
the
procession deos andest deos therefore I
David dorga 12th May scale do declare in
Scottsdale uh this month as Hispanic
Heritage Month in Scottsdale and I
encourage everyone to celebrate the
history culture and individuals of
Hispanic descent so please come forward
just
[Applause]
so other announcements uh during
tonight's meeting the council may make a
motion to recess into executive session
to obtain legal advice on any applicable
item that is on the agenda if authorized
by the um Council the executive session
would be closed and uh afterwards it
would be open to the public also per our
rules of procedure citizens attending
City Council meetings shall observe the
same Rules of Order and decorum
applicable to members of the city
council it helps us our meeting run a
lot smoother Additionally the council um
has rules against U using electronic
devices to communicate exp part outside
of this um assembly and uh we we have
placed those um devices aside during the
meeting um our next part of our program
is a call to the public call to the
public is by law an opportunity and an
open meeting
for um citizens to come forward with a
topic that is not on the agenda and we
would hear them and I'm told there were
no requests from the public to speak for
public comment accordingly I will close
public comment next we will move on to
the um subject of our minutes um I would
request a motion to approve the
following special meeting minutes of
August 13th
2024 special meeting minutes uh special
meeting number one of August 2020th 2024
special meeting minutes of special
meeting number two of August 20th 2024
and we had executive session meetings
August 20th of 2024 we also had a
regular meeting minutes of August 20th
2024 do I have a motion so moved second
motion a second any discussion seeing
none please record your vote
and I'll call on Vice yes
oh
Durham thank you we are
unanimous um next we will move on to
consent agenda items uh consent agenda
items have complete file information and
they are thoroughly vetted and uh we
have items 1 through five uh these are
on the agenda and posted uh at this
point I would also open public comment
for any agenda consent agenda items 1
through five uh seeing there are no
requests to speak from the public on
items consent agenda items one through
five therefore I will close uh public
comment for consent agenda items 1
through five do I have a motion
regarding consent agenda items I move to
approve consent agenda items number one
through five second thank you we have a
motion and a second any further
discussion seeing none please record
your
vote
I so we are unanimous and that was the
voice of vice mayor
Graham next we will move on to to um
consent sorry regular agenda item number
six um item number six is an advanced
semiconductor materials company known as
ASM we have a development agreement for
consideration our uh presenters are
Terry Kilgore of the economic
development office and Scott Cooper He's
the business uh traction manager so at
this point I will turn it on to uh turn
it over to Terry Kilgore hello good
evening mayor and Council Terry Kilgore
economic development director I'm
excited to be here this evening to talk
to you about a company that is going to
be a great addition to our corporate
citizenry uh ASM America Incorporated is
bringing their Regional uh excuse me
their national headquarters in the
United States to Scottdale and along
with it a net new 1,00 jobs to our area
700 of those are um currently in Phoenix
but they are committing as part of this
infrastructure agreement to bring 500
new jobs and we'll talk more about the
quality of those jobs in a
minute so to orient everyone we are
looking at the 101 just as it bends
towards the West the site in white
represents a schematic of the potential
ASM campus layout it's 21 Acres um
purchased from um Dorito Partners who is
the master developer in this area
and they have great plans to build a new
facility so as background ASM is an
international company founded in the
Netherlands in 1968 they've been here in
Phoenix since
1976 um Scottsdale will be their North
American headquarters and even more
importantly a major research and
development facility for the company um
obviously with Intel and tsmc growing as
chip manufacturers there's an important
support industry that comes along with
supporting those chip manufacturers so
while ASM doesn't manufacture chips um
they manufacture the equipment that
allows companies to print on each layer
uh of these Wafers and so they're
printing with materials like metals and
different um composits that help each
layer of a chip communicate different
information and run different processes
so if you can think about it these are
infantism small little Wafers and so
what they do is they their machines
deposit um the recipe if you will onto
each layer of the Chip And then the
intels in the tsmc assemble the chips
and so we know the 32 in or excuse me 32
layer Wafers are what make our phones
run make our computers run make our
lives run and so um it's an important
support um they're not manufacturing the
machines at this facility they are doing
research and development they are um
working with the end users to to refine
the machines so that when they go and
install these on the line um they're
ready to go their operators are trained
and the machines are behaving in the
manner in which they need them to be and
then they're also looking at Next
Generation technology how do you do
things things better faster more
reliably so they'll come in on those 21
Acres immediately south of loop
202 ultimately they'll build a 400,000
squ foot facility um and when you
combine all the the new employees with
the existing employees on this campus
they will become one of our top 10
private employers so a major addition to
our employment base here in Scottdale
this is an over $400 million capital
expenditure for them between the land
the building and the equipment that
translates into property tax dollars for
our community and as you can see at the
last bullet the estimated economic
impact of $8 million over 10 years is
only direct amounts paid to the city of
Scottdale when you add up all the
answers AR benefits of people going out
and eating people moving into the
community all the things that come with
large um corporate locates that number
climbs to over4 billion dollars for the
same period so it's a significant
economic driver for us
[Music]
um switch to this so one thing to note
about this deal that is different than
other uh agreements that have been
before the council recently is that um
ASM can go on this property with no
rezoning there operations fit the
existing i1 zoning and so they are still
responsible to go through drb and our
design processes but there is no
rezoning action requested of the council
uh as part of this transaction ASM has
committed to Bringing 600 acre feet of
renewable water to the city um and in
fact that's somewhat front loaded they
they bring it in earlier than they will
actually use it and so it brings
capacity to our water services team to
deploy water as they see necessary and
for those of us that don't speak acre
feet um I still struggle with it it's
over 195 million gallons um which is
just an amazing amount and then as we
have as a city been Innovative in our
water reuse and recycling um we have
added in a provision um that at the
council's request that suggests that we
set a minimum of how much water they
need to return into the sewer um in the
old days we didn't pay as much attention
to that but now now water is valuable
and so how we can recycle that water for
landscaping and other uses is important
and so there are penalties in the
contract should they not return the
intended amount of water um on the
schedule agreed
to so the public infrastructure that we
are gaining is they are building out
sections of roadways um they are also
primarily in this agreement uh
accelerating the construction of
infrastructure for which we as a city
are ultimately resp responsible to
provide what they are not doing is um
this contract is not doing I should say
it is not paying project expenses that
are solely asm's responsibility so
development pays for development this is
to build the public infrastructure that
supports this area and will support
other neighboring properties and
community members as well the way the
deal is structured is there's a
milestone date um of actually this is
incorrect I apologize um the Milestone
is at 6 years meaning they have to do
these next couple bullets we'll talk
about within 6 years the term of the
contract is 7 years so they have an
extra year to work their way through
although their reimbursement declines if
they do not hit their Milestones on year
six so as part of the deal ASM must
construct their 400,000 square feet of
commercial space the new jobs they're
bringing in um are coming in at an
average wave wage of
$110,000 for Conta many of the leads
we're seeing come through our pipeline
right now are averaging 60 to 70,000 on
an average wage and that's because of
the highly technical Highly Educated
Workforce that ASM relies upon so a lot
of these jobs will be phds um there'll
be folks who are very knowledgeable
about the next waves of Technology um so
overall we measure that by them
achieving a payroll of $55 Million by
that Milestone date and so if all
performance requirements are met and the
infrastructure is built as intended the
maximum reimbursement amount is just
over $6.3 million and 84 cents um to be
specific so if they don't meet those
requirements and again this is by year
six the amount will be reduced by 5%
every month and so you can as you do the
math you see that um yet by year seven
there's no money left in the deal um
regardless so this is like most of our
um development agreements a not to
exceed structure meaning the
reimbursement is capped they have to
prove that they expended the funds in
accordance with the agreement that they
provided the infrastructure out a public
purpose and that they achieved their
Milestones so due to evolving conditions
we proposed um two categories in this
agreement one is an eligible column um
that calls out those items which are
clear um at this moment in time as
eligible for reimbursement we have
another column called under
consideration and some of that is being
driven by how much activity is being um
undertaken in this Corridor by many
different parties and this Council has
seen some of those agreements um and so
we want to make sure that we are only
reimbursing those infrastructure costs
that are appropriate um and we that we
don't have any accidental overlap or
double counting so this is an abundance
of caution on staff's um side and so the
way that would work is as we get more
details in on plans and construction
costs that is not fully available at the
moment um as we have enough information
staff will make a recommendation to the
city manager um and then with the
concurrence of the City attorney it
could be then considered an eligible
expense so 6.3 million is and excuse me
6.3 milon 500 whatever those numbers are
um that is the absolute maximum that the
city is being asked to reimburse in all
likelihood we may see a number less than
that but in no in will we exceed that
maximum
number so here's the breakdown you can
see the eligible costs are 3.45 million
those still under consideration are 2.9
Million for a grand total of just over
6.35 so the benefit to the community in
addition to Epic bragging rights which I
think um some of our speakers will talk
about um this new headquarters really
does serve as a magnet for top talent um
it diversifies our industry base which
is a huge focus of the economic
development strategic plan to make sure
that we are um active in emergency
emerging Tech and emerging
Technologies uh it expedites those
infrastructure pieces like Mayo
Boulevard and Miller Road which will be
of service to all of us as we travel in
that section of town and then it brings
in high quality jobs in a new high-tech
facility so with that our request is to
adopt resolution
13158 um I would like to take a moment
to thank the team that has worked on
this this has been a true
multi-departmental effort um we have our
department heads who have been involved
from Water Resources Transportation city
attorney's office and um Community
Development here to answer questions
along with us and I also want to take
one moment to say um how much we have
enjoyed working with Yumi Taylor and
odet Baker from the ASM team um they
have set the standard for uh companies
coming in and being forthright and
Cooperative uh with staff in the
development process so with that mayor I
would um ask if we could bring Steve
Ryder to the deis to proide provide some
slides for
ASM excellent come
forward okay good evening mayor Orga uh
vice mayor Graham and members of the
city council um I'm very excited to be
here tonight and to be given a chance to
talk a bit about ASM and our exciting
Expansion Project here in Scottdale my
name is Steve Ryder and I'm a corporate
vice president at ASM uh I'm leading one
of our business units here uh based in
Phoenix and I've witnessed tremendous
growth
um no
worries sorry about that just making
sure your slides come up
sorry I'm sorry but there's no more
slides that were present at the end I'm
I'm just going to talk with slides is
that okay I'm sorry look if you give me
a second I can see if it was submitted
to the counil and I can pull that up it
just wasn't submitted to me okay for
what sorry in the interest of time I'll
just keep going so as I was saying I've
witnessed a tremendous growth curve at
our company in my roughly nine years so
far being here in Arizona and being with
ASM and look we have such a bright
future ahead of us as we develop
innovative solutions for our customers
and really Drive technology advancements
in areas like artificial intelligence
and
5G so you may be asking what does ASM
really do so simply put we Supply
deposition equipment to Leading
semiconductor manufacturers like the
intels and tsmc's of the world we are
not though a chipmaker so for chipmakers
they typically process tens of thousands
of silicon Wafers every month huge
manufacturing uh uh uh runs that they
complete but we we do is we design and
develop equipment in a true R&D setting
so we develop tools we make sure they
meet customer specifications and
customer requirements and then we ship
those tools to customer sites and work
with them to qualify it into their
production flows that's typically how we
how we work and get qualified and get
business so another thing to note about
ASM is that we've been around a long
time so over 55 years uh for our company
including 48 years in Phoenix
Arizona so that means that ASM was one
of our the first semiconductor companies
in Arizona when we first established our
North American headquarters back in
1976 finally ASM has an established
track record of sustainability water and
environmental uh stewardship we're
targeting Net Zero by 2035 and globally
all of our electricity at all of our
sites currently right now is renewable
so that's pretty
cool okay so what's next for ASM we are
very excited that our North American
headquarters and it's also going to be
our largest Innovation Center will be
based here in Scottdale with this we'll
continue to be an important part of the
semiconductor ecosystem in Arizona and
we're close to our customers and our
suppliers I also want to highlight that
there is an extremely talented Workforce
in Arizona and we're very excited that
we can can continue hiring and help them
uh grow and help have them help us grow
into our
future okay so what is ASM bringing to
Scottdale with this new project so first
off as mentioned by Terry we're
committed to creating 500 new high value
jobs these are going to be corporate
functions research and development
engineering
jobs secondly this is a $300 million
investment from our company with a
strong grow trajectory feeding into the
city's economy uh we commissioned a gek
to help us create an economic impact
assessment over a 10-e period direct and
indirect personal income estimated at
714 million so that's cool but I want to
talk next about something that
personally is really important to me and
that is promotion of stem in our schools
getting kids excited about science
technology engineering and math and and
and for them to understand their
possible Futures in high-tech Fields
like
semiconductors and with that in mind ASM
is collaborating with the scottsfield
Unified School District on two really
cool initiatives one is a middle school
program called design my future classes
this will raise visibility for students
and their parents uh towards classes and
programs that are important for their
future educational growth towards high-
wage high-tech
Fields another initiative is targeted
for high schoolers it's called sisters
and stem and it will raise awareness of
opportunities and build excitement for
science-based careers for young women so
I'm personally excited about these
initiatives and want to personally be
involved in these going forward with
Scotts Unified School District
finally we're committed to being strong
stewards of uh the environment and water
resources and with that in mind
specifically for water usage and
conservation we've designed our building
uh with our Water Reclamation system
that's capable of recycling up to 80% of
our lab water so significant amount of
recycling of the water before it's then
fed back into the storm grains
additionally we're bringing 20 years
worth of water to Scottsdale as
mentioned by Terry beyond our commitment
to water conversation we're pursuing
lead Green Building certification and
utilizing the greater Phoenix green
initia infrastructure handbook for our
landscape
designs that's it again I just want to
thank you for the chance for in a short
five minutes to uh share my thoughts and
speak with you today uh share some of
the excitement that we have for this
project and uh thank you very much well
thank you
um we have staff standing by to answer
questions but at this point we will open
public comment on this item so please
take a seat
um members of the public who have
requested to speak include Daniel AEK
Allan Luis
Adra and um Brad SMI if you'll come
forward you have three minutes sir and
uh go
ahead mayor council Dan Isaac address on
record thank you for the opportunity to
speak um almost everything that I was
going to say has already been said so
I'll be quick I'm very excited about
this project for our city not only as
ASM a world-class organization that we
should be proud to have in Scottdale but
they are a leader in the technology
sector which is very important as
already mentioned for the
diversification of our industry here in
Scottdale they will bring hundreds of
jobs to our city and obviously will have
an economic impact and they will
reinforce the belief that Scottsdale is
a good place to do business and a good
place for High-Tech but not only that
ASM is already proven that they're going
to be a good Community partner we've
heard about their initiatives with
regard to water and we've heard about
what they're going to do to help improve
the infrastructure near their
headquarters they were also as mentioned
working with our school to provide
educational internship opportunities for
our children this is a great project I
want to thank the city's staff for
moving this along and all of the work to
get it this far thank the council and
the boards and commissions that will
provide future approvals to make sure
that this continues moving forward thank
you thank you Alan Lewis uh Debra and
then Brad Schmidt and David
hovi all right uh mayor Orga and vice
mayor Graham and members of the city
council first I would like to thank you
for the opportunity to speak with you uh
this evening my name is Alan damra I am
a resident here in Scottdale I live at 8
8 103 East
Redfield and about four and a half years
ago I had an opportunity to make a
simultaneous decision to move to
Scottdale and join
ASM uh I spent over 54 years in the uh
bay area and worked 26 years in the
Silicon Valley and I couldn't be more
excited than this opportunity that I've
been given the other unique thing is uh
my son and I just to show the Deep Roots
that we're in where we grew up we're
born in this you know we shared the same
birth hospital so everybody said how
could you leave how could you go and I
think the decision was
easy to join ASM it's a worldclass
company it's uh leading the technology
driving the future and the advanced chip
industry and also for Scottdale I found
this to be an also an easy move the
welcoming environment has proven to make
this transition very
easy um and again as I mentioned the
city does offer a variety of diverse uh
uh areas for entertainment but I also
love the old school you know the you
have the motto of the uh old west meets
the new West and uh I think that is very
unique uh my current home excuse me uh
across the street I can go say hi to the
neighbor's
horse and then I can get on my bike ride
to Oldtown and all the different bike
paths which is also really exciting and
then eat at maybe one of the over 800
restaurants that are in Scottsdale so
this is also a very uh uh great area to
keep the wife happy
too um the location to be so close in uh
the Scottdale area is also going to
prove to be uh very nice
um what I'd also like to add is that you
know I've always been very proud to be
in the uh uh semiconductor industry we
have a a great opportunity where we
benefit every aspect of Our Lives
whether it's health safety or the
quality of life and this is really
emblematic of Scottdale also it's a
great place to share your quality of
life and I couldn't be happier for the
two decisions I made four and a half
years ago and I look forward to the
future of being able to say I live and
work in the same city so I appreciate
your time and thank you for the
opportunity thank you
sir next coming forward Brad Schmidt and
David hovy U please State your address
as well and uh
continue all right good evening mayor
members of the city council my name is
Brad Smith I am the senior vice
president at the greater Phoenix
Economic Council while I not a Scottdale
resident I did grow up here and I have
fond memories of cone of the library in
this building uh a long time ago so um
uh our address is T North Central
Phoenix
85004 um I'm here tonight to on behalf
of the greater Phoenix Economic Council
on behalf of our president CEO Chris
kamacho uh in support of uh your uh
development agreement here with ASM uh
this evening um as you heard ASM is has
been a long time employer and a partner
in the greater Phoenix area in Arizona
and the semiconductor ecosystem and we
really hope to continue that partnership
and that Innovation here in the market
uh as you also heard they're they're
planning on employing over 500 new jobs
to the market along with the the
additional jobs they'll move from the
the City of Phoenix uh th those jobs
have an estimated payroll of over $55
million and an average wage of over
$110,000 which is fantastic great for
the residents of both the region and the
City of Scottdale uh these high wage
jobs will support over 640 uh indirect
jobs uh with an additional $300 million
in personal income for the area uh along
with the 410 million in personal income
uh for the direct jobs you have over
$700 million in personal income new
personal income created by ASM uh for
the residents of the city of Scottdale
and the surrounding uh region uh as you
heard the the estimated 10 10e uh direct
economic impact just to the city of
Scottdale was over $8 million and and
the total direct and indirect uh well
over the $10 million Mark uh for the
market in a 10-year period city of
Scottsdale the greater Phoenix area as a
whole are areas of innovation and
forward-looking leaders this facility
this headquarters facility and their
research and development that happens in
this area are a vital will be a vital
Cog uh to the ensure that this region
can maintain its place as a hub uh for
Semiconductor Innovation and production
uh this facility's infrastructure and
Equipment as you heard will prioritize
renewable energy water Recycling and
other sustainability features which uh
we continue to promote uh in this
Marketplace as the region continues to
improve their ourstanding and reputation
as a destination for top National and
international companies especially in
the semiconductor ecosystem ASM is
certainly a key contributor
contributor uh for future growth
potential in the city of Scottdale in
the area as well thank you for your
support of this vital project uh to the
Phoenix region and the semiconductor
ecosystem in Arizona thank
you well thank you next we um have David
hovi good evening mayor city council
it's great to be back here
um David hovy Jr a 7157 East Rancho
Vista Drive I'm president of Optima we
own the 21 Acres directly west of the
ASM site um as you know I forwarded an
update to you earlier today on the
status of some design issues that we are
currently discussing with
ASM um I wanted to bring this to your
attention because although the drb
hearing is not until October 3rd the
items that we are discussing are
critical to the uh success and the
ability to finance the second
condominium building which we have
planned for the
site the particular issue that we're
dealing with is that the garage is
located adjacent and parallel to this
particular
building and in order to ensure that the
design issues are addressed it would be
highly beneficial during this next stage
of negotiations to see details and
updated renderings of asm's prop
proposal which we are currently in
discussions with on uh with Asm on
we think the ASM project is welld
designed and will will be a great
addition to Scottsdale and we're hopeful
that these design issues can be resolved
prior to the drb hearing on
103 and we're looking forward to being
great neighbors and having a great
neighbor relationship with ASM and happy
to answer any questions anybody might
have
too good thank you um at this point are
there any other requests to speak thank
you sir thank you thanks David so at
this point I will close
public comment uh at this point we have
a opportunity to
um consult with one another and actually
ask any questions of Staff if there's
any remaining questions at this point I
will call on council member Durham and
then councilwoman
Janik thank you
mayor I think it's important as Miss
Kilgore uh said in her presentation that
this is not a zoning
request uh this is slated for an
industrial use and so something of an
industrial use is going to come into the
spot sooner or later uh they're entitled
to this use and I I think that this is
an excellent use for this area uh
because it gives us a piece of the
technology business uh which is booming
around the valley uh between Intel tsmc
Etc and so I I think it's very important
that we play a role in this and as it's
been mentioned it diversifies our
economic base um this is a low very low
impact R&D business it's not
manufacturing uh it's high-paying jobs
and they are bringing 20 years of water
to
us excuse me which will be able to Bank
in the future in the in the first years
because they're not going to to be using
the water for several years and so
that's a great benefit to us uh I had
the opportunity to visit Netherlands
earlier this year and it's a very
environmentally conscious country that
really knows the importance of water uh
because uh they're got to protect
themselves against water and they use
their water very carefully so I'm I'm
confident that they're going to do a
great job uh with that and and they've
been very Cooperative in bringing that
extra water to us uh which we can Bank
in the early years um
um the the money that we're being asked
to reimburse tonight is money that the
city would eventually be spending in any
event uh to complete Mayo Boulevard to
complete Miller Boulevard and so on so
we're just sort of a um assist in them
in doing the infrastructure so that they
can get their project going and um and
we're we're only reimbursing them for
money uh that would be our own
responsibility for infrastructure and
development and Roads and so forth and
so on so I I think this is an excellent
project for that spot I hope they can
work out any differences with Mr hovy I
that's really not before us tonight
it'll be before uh development Review
Board in a few weeks and um I know that
ASM has been very Cooperative with us in
forwarding going forward on this project
so I I hope that they'll work with Mr
hovi on that so I'm very much in favor
of this and I would move to adopt
resolution number
13158
second thank you we have a motion and a
second um next requesting to speak is
councilwoman Janik and councilwoman
White
thank you mayor um first of all I want
to thank uh Terry Kilgore for a very
informative presentation and I also
would like everyone to know that she's
our new economic development director
and what a wonderful project to start
your career off with here uh that's
really great and then um Steve Ryder um
thanks for your presentation and as a
former chemist and a former chemistry
teacher I am so appreciative that you
will be working with SSD to support our
stem projects I think we all know when
you major in science you put in a whole
lot of time in that lab but to know that
these opportunities exist at the end of
that curriculum uh is really really
tremendous for our school system for our
students for keeping our families here
because they know they have a future
with really good job so I just wanted to
recognize that um and it's with great
respect that I W welcome ASM R&D North
American headquarters to Scottsdale that
is quite a feather in our cap for both
of us so thank you um I do have a couple
of questions uh they're fairly
straightforward I am not sure if Miss
Kilgore would like to respond but um one
of them is attachment to development
agreement page six of 13 item 11 the fee
of
$144,000 plus could you just to explain
this fee and I believe that uh Brian
bees Meer um can explain my question is
um is this basically a service fee that
will be borne by ASM um mayor and
Council U councilwoman janic it's a it's
actually the cost of getting that water
from SRP to actually providing us that
wet water so Sr it's the transportation
cost of the actual wet water to us and
so um ASM will pay that so our rest of
our rate payers don't pay that amount so
that's the that allows us to access that
600 acre feet without any charge to our
rate base okay so I think it's important
just to emphasize what you said that it
will not affect the rate base of our
citizens with their water bill that's
correct okay thank you um I have a
second question and this is Exhibit C
page one of one and it's page 25 of the
PDF item number seven and it's you talk
about uh the conditions that the city
will reimburse ASM for the sewer lines
um and I just wanted a brief
explanation of under what conditions
will that be done because the term is
May I think we would all like a little
more information on it and I just wanted
to
verify that any of these costs are
included in the numbers that you have
already quoted so if you could address
that I would appreciate
it hopefully the Elmo works like I think
it does great so um I mentioned in my
earlier presentation the complexity of
all that's happening in this Corridor
right now um so for instance on sewer uh
the city has entered into an agreement
with Optima to build the sewer line um
that runs along Mayo head south
um on Princess and then ultimately
connects into other City facilities down
near TPC so it's a big line it's a deep
line um and so there's questions about
as there not questions there there's not
yet full information about the total
costs how those costs are going to be
allocated based on flows versus
construction cost and so that's an
example of where we've put a a pin in it
to say we'll come back when we have more
complete information and so if it is
after we get all the information
eligible we would then consult with the
city manager City attorney for
concurrence um to make sure it really
meets all the litmus tests that we look
for um but in no case does our city cost
go above that 6.35 2 million um that
really is the maximum cap if there are
if it's deemed not eligible ultimately
that becomes an ASM direct cost that
they would bear okay so there's a
possibility the that the
6,352
659 may actually go down depending upon
uh when the information becomes
available yes that's correct for sewer
for water and for storm water as well
okay that's wonderful thank you and then
the other comment I forget forgot to
make is just thank you for setting the
model for sustainability you can have a
good business you can have a profitable
business you can have a business that
makes a huge difference in our country
in the world with the products you make
and you can still be sustainable that is
the goal that all of us should seek so
thank you thank you very much thank
you councilwoman white D thank you mayor
uh I also have a lot of thanks to give
it has been such a pleasure working with
ASM for the time that we've been
together really uh a model company both
in your willingness to listen to City
neighbors and and also the definitely
the sustainability leadership that you
bring in fact this is a sustainability
block because next door we have another
sustainability champion in David hovy
and his Optima project so it's pretty
exciting and like my colleague
councilwoman janic I get a little
excited about a science engineering
company too because of my background and
like one of the speakers the employee I
also am a California transplant engineer
that decided not to go back
so it's you pick the right spot I mean
this is such a good place to do business
such a good place to live um so I also
want to thank uh the company for because
this is an infrastructure hearing um you
have been very proactive working with
your neighbor and with me and with
others on Council to address some design
issu um
design I guess issues to make sure that
the two projects match um some pretty
significant ones I'll just mention the
elevation changes that you've agreed to
you know bicycle paths and even tree
sizes and another another few issues
that will be in the drb and that is the
kind of um cooperation that really helps
uh make these projects move smoothly not
just from the council but beyond until
the project are completed and built and
running so really want to thank you for
that I also I want to call out our staff
too because um and Mr hovi for his um
remarks today our staff has to look not
at your site plan they have to look at
the whole area our planning staff and it
is a puzzle and I'm always impressed
with how the planners consider every the
impact of each neighboring prop property
as well as um the issues that the
applicant is facing so I think this was
a great team effort all around I'm
looking forward to moving forward I'm
looking forward to to both you and your
neighbor being completed so it's I
second it I obviously support it I'm
ready to go so thank
you okay next to speak anyone else to
speak sure all right I'll say two
words yes sure let's press it thank uh
nothing really incredibly you know
everyone's already said everything but I
just want to uh remind everyone as has
been said before this is not a resoning
it is a development agreement for public
infrastructure and so the reason that it
sounds like such a Love Fest up here
tonight is because our Council has
already been looking and our staff at
this project for months and months and
we've gotten it to this wonderful place
where uh we took a great agreement and
we made it even better and so it's easy
for us us to move it forward again we're
making this look way too easy I think up
here tonight because but that's because
there's been months and I think almost a
year of work making sure that the
project uh got the agree development
agreement got better and better so I
think we're all pretty comfortable with
it now and um I just want to thank my
Council not just the staff for moving it
forward to this point where we can all
um say great things about it so thank
you
everybody okay well um I will continue
here the um this project is an
outstanding uh project it's an owner
user project which is important it's not
a speculative project they're bringing
amazing technology which is part of um
our world economy it's part of our
regional economy it's even part of our
national security and um it's
interesting that as you look at the
aerial picture you'll notice that this
land orig orig Al was State trust land
that meant that the uh land was deed
when we became a state and the proceeds
were to go for
education and the property was sold and
it's uh those proceeds um went directly
into our schools K through 12 and uh
really planted the seed for continuing
the education possibilities in ed in
Arizona we continued then it got resold
and and yet the purp purpose um remains
really the the same kind of advancing
our statehood right advancing
opportunities for education and uh even
then um basing your your uh North
American headquarters with us once
you've located the research and D R&D
area then we have the opportunity to uh
you have the opportunity to produce
intellectual property and when you
produce IP in in the United States of
America it's very solid that's another
reason why uh you you gain security by
being here in Scottdale uh we'd be proud
to see some of these uh patents and so
forth uh saying originated in Scottdale
right and so that's a tremendous um um
ability that you're bringing and
expertise to our city uh with that we
have a motion we have second please
record your vote
calling on Mr okay thank you U therefore
we are we are
unanimous congratulations we look
forward to uh just amazing Community
Partners so um thank you so much um
we'll celebrate at a88 or where place of
your
choice next we will move on to public
comment an opportunity for the public to
come forward seeing none I will close
public comment next we would have
citizen petition seeing none I will
close that and finally um at this point
I would request a motion to adjourn
second I uh please record your
vote we are adjourned thank you hold on
we'd love to e