Summary Sheet- RFCA SUMMARY
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CITY OF TEMPE Meeting Date: 3/5/2026 REQUEST FOR COUNCIL ACTION Agenda Item: 7C2 ACTION: Adopt a resolution authorizing the Mayor or designee to execute an Intergovernmental Agreement (IGA) with the City of Phoenix in support of a Foreign Trade Zone (FTZ) application by Arizona Custom Blends located at 2130 South Industrial Park Avenue and 1222 West 23rd Street, Tempe, AZ. (Resolution No. R2026.18) FISCAL IMPACT: N/A. Arizona Custom Blends (applicant) is NOT seeking property tax relief as part of the FTZ application. RECOMMENDATION: Adopt Resolution No. R2026.18. BACKGROUND INFORMATION: Foreign Trade Zones (FTZ) are secure areas under the supervision of the U.S. Customs and Border Protection (CBP) that are considered outside the customs territory of the United States at which special CBP procedures may be used. Foreign and domestic merchandise may be moved into zones for storage, exhibition, assembly, manufacturing, and processing without payment of duties, quota, and other import restrictions until the decision is made to enter the goods into the U.S. market. Foreign Trade Zone 75 (FTZ 75) includes Maricopa County (excluding the City of Mesa) and portions of Pinal and Yavapai Counties. FTZ 75 is administered by the City of Phoenix under an intergovernmental agreement with a supporting municipality. Arizona Custom Blends (ACB) has prepared an application for a Foreign Trade Zone designation and seeks support for its application from the City of Tempe. The application process and subsequent FTZ governance will be managed by the City of Phoenix under the IGA. ACB is a contract manufacturer based out of its 141,660 sq.ft. building on 3.5 acres in the Maker District which specializes in nutraceutical powders and capsules for both human and pet markets. Activities include formulation, blending, encapsulation, and packaging in various formats (canisters, gusseted bags, single-serve sachets, stick packs) for clients’ brands using imported ingredients. 2 ATTACHMENTS: 1. RES21870 FTZ BLANKET APPROVAL 10.21.2020.PDF 2. FTZ_RESOLUTION_ ARIZONA CUSTOM BLENDS.DOCX 3. IGA (CITY OF TEMPE AND CITY OF PHOENIX AZ CUSTOM BLENDS FTZ) 2.17.26.DOCX STAFF CONTACT(S): Lisa Hausz, Program Manager, Economic Development, 602-539-0259; April Kroner, Deputy Director, Economic Development, 480-815-5938 Department Director: Jeff Tamulevich, Community Development Director Legal review by: Eric Anderson, City Attorney Prepared by: Lisa Hausz, Program Manager, Economic Development