Resolution No. 5458

City of Chandler — Regular Meeting (2021-04-08)

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RESOLUTION NO. 5458 
 
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHANDLER, 
ARIZONA, AUTHORIZING SUPPORT FOR A FOREIGN TRADE ZONE 
APPLICATION FOR THE VIAVI SOLUTIONS INC. MANUFACTURING 
FACILITY TO BE LOCATED AT 3455 SOUTH MCQUEEN ROAD; 
AUTHORIZING SUPPORT FOR A PROPERTY TAX RECLASSIFICATION 
FROM CLASS ONE TO CLASS SIX FOR ALL NEW PERSONAL PROPERTY 
AT THE SITE; AUTHORIZING A DEVELOPMENT AGREEMENT BETWEEN 
VIAVI SOLUTIONS INC. AND THE CITY OF CHANDLER; AND 
AUTHORIZING AN INTERGOVERNMENTAL AGREEMENT BETWEEN 
THE CITY OF CHANDLER AND THE CITY OF PHOENIX. 
 
WHEREAS, Viavi Solutions Inc. (“Viavi”) is a leading manufacturer of network testing, 
measurement, assurance and light management and optical coatings products and technologies, 
and is evaluating locations within the metropolitan Phoenix area and outside of Arizona to 
establish a new manufacturing facility and headquarters; and 
 
WHEREAS, Viavi has agreed to establish its new manufacturing facility and relocate its 
corporate headquarters to the City of Chandler in exchange for the City’s cooperation and 
support in seeking a Foreign Trade Zone (“FTZ”) designation for its facility; and 
 
WHEREAS, Viavi is in escrow to purchase an industrial facility at 3455 South McQueen Road, 
Chandler, Arizona (“Site”); and  
 
WHEREAS, without receiving FTZ designation for its industrial facility and a property tax 
reclassification from class one to class six for all new personal property, Viavi is put at a 
competitive disadvantage, which is detrimental to the economy of the City of Chandler, as well as 
the State of Arizona; and 
 
WHEREAS, Chandler desires to support Viavi in applying for FTZ Operator status at the Site 
under FTZ No. 75, provided that Viavi agrees to not pursue reclassification of any real property at 
the Site to class six; and 
 
WHEREAS, Viavi is agreeable to such limitation on state tax treatment; and 
 
WHEREAS, the City of Phoenix has received a grant from the federal Foreign-Trade Zones Board 
to establish Foreign Trade Zone No. 75 and Chandler does not have any such grant of authority; 
and 
 
WHEREAS, Phoenix is willing to submit an application to the Foreign-Trade Zones Board on 
behalf of Viavi for the property at the Site to be established, operated, and maintained as a foreign-
trade zone usage driven site. 
 
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chandler, Arizona, 
as follows:

Section 1. 
Authorizes support for a Foreign Trade Zone application for the Viavi 
manufacturing facility to be located at 3455 South McQueen Road, and 
authorizes the Acting City Manager or designee to submit such documents 
or statements as may be necessary to establish Chandler’s support of Viavi’s 
application. 
 
Section 2. 
Authorizes support for a property tax reclassification from class one to class 
six for all new personal property at the Site, and authorizes the Acting City 
Manager or designee to submit such documents or statements as may be 
necessary to establish Chandler’s support of the tax reclassification for new 
personal property at the Site. 
 
Section 3. 
Authorizes the Mayor to execute a development agreement between 
Chandler and Viavi, a copy of which is attached as Exhibit A to this 
Resolution. 
 
Section 4. 
Authorizes the Mayor to execute an Intergovernmental Agreement between 
Chandler and Phoenix to memorialize the agreement of the two cities to 
work together to assist Viavi in its efforts to obtain FTZ Operator status for 
the Site, a copy of which is attached to this Resolution as Exhibit B. 
 
PASSED AND ADOPTED by the City Council of the City of Chandler, Arizona, this _____ day 
of April, 2021. 
 
ATTEST: 
 
___________________________ 
 
 
_________________________ 
CITY CLERK  
 
 
 
 
MAYOR 
 
 
CERTIFICATION 
 
I HEREBY CERTIFY that the above and foregoing Resolution No. 5458  was duly passed and 
adopted by the City Council of the City of Chandler, Arizona, at a regular meeting held on the 
_____ day of April, 2021, and that a quorum was present thereat. 
 
 
___________________________________ 
CITY CLERK 
APPROVED AS TO FORM: 
 
_____________________ 
CITY ATTORNEY