Discussion and possible action to adopt RES. 2025-108 authorizing the City Manager to execute an Intergovernmental Agreement between the City of Peoria and the Arizona Department of Revenue for distribution of funds to the City under Arizona Revised Statutes § 42-5032.02.

The City is authorized to enter into this agreement with ADOR to obtain funding for Public Infrastructure Improvement Projects (PIIP) necessary to support Amkor’s Seven Billion Dollar ($7,000,000,000) Capital Investment in Peoria Innovation Core.

Under A.R.S. § 42-5032.02(H), the City can obtain reimbursement for up to eighty percent (80%) of the cost of a PIIP from the portion of Transaction Privilege Tax (TPT) revenue under A.R.S. § 42-5075 derived from the construction of buildings and associated improvements for the benefit of the Facility and the water and wastewater public infrastructure and street public infrastructure PIIPs that benefit the Facility. In summary:

• The City must dedicate 100% of its local construction TPT revenue generated from the construction activity associated with the qualifying facility toward the PIIP. This local TPT serves as the City’s contribution and matches the overall project funding.
• The City must enter into a written agreement with Amkor that identifies:
  • The PIIP qualifies for state matching funds
  • The total project cost and the portion to be funded by the City and by the State
  • The timing, ownership, and maintenance responsibilities for the improvements.
• The City must execute an IGA with ADOR to administer the revenue allocation and establishes the process for:
  • Tracking and verifying the TPT revenue generated from eligible construction activity
  • Remitting the state portion up to 80% of eligible project costs to the City for the PIIP
  • Reporting and Compliance requirements to ensure proper use of funds consistent with statutory and program rules.

No previous actions have been brought to Council relating to this project.