Resolution 5551

RESOLUTION NO. 5551

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHANDLER,
ARIZONA, AUTHORIZING SUPPORT FOR A FOREIGN TRADE ZONE
APPLICATION FOR THE RINCHEM DISTRIBUTION FACILITY LOCATED
AT 6805 W. MORELOS PLACE: AND AUTHORIZING THE EXECUTION OF
AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF
CHANDLER AND THE CITY OF PHOENIX.

WHEREAS, Rinchem Company, Inc. (“Rinchem”) is a chemical management solutions provider
for high purity, pre-packaged chemicals and gases distributor, and owns and operates a distribution
facility at 6805 W. Morelos Place, Chandler, Arizona (“Site”); and

WHEREAS, without receiving Foreign Trade Zone (“FTZ”) designation for its distribution
facility, Rinchem 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 Rinchem in applying for FTZ Operator status at the Site
under FTZ No. 75, provided that Rinchem agrees to not pursue classification of any real or personal
property at the Site as Class 6 to receive the beneficial state tax treatment available to an activated
FTZ Operator; and

WHEREAS, Rinchem is agreeable to such limitation on state tax treatment; and

WHEREAS, the City of Phoenix (“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 Rinchem for the property at the Site to be established, operated and maintained as a
foreign-trade zone usage driven site;

WHEREAS, state law authorizes Chandler and Phoenix to enter into an Intergovernmental
Agreement memorializing their agreement to work together to establish a FTZ designation for the
Rinchem facility.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chandler, Arizona,
as follows:

Section 1. The Mayor and City Council of the City of Chandler, Arizona, does support a
Foreign Trade Zone designation for the Rinchem distribution facility located at
6805 W. Morelos Place.

Section 2. The Mayor and City Council of the City of Chandler, Arizona, does support
‘ Rinchem’s application for FTZ Operator status under FTZ No. 75. ‘

Resolution 5551
Page 2

Section 3. The Mayor is authorized to execute an Intergovernmental Agreement between
Chandler and Phoenix in substantially the form attached as Exhibit “A” and
approved as to form by the Chandler City Attorney.

PASSED AND ADOPTED by the City Council of the City of Chandler, Arizona, this
day of , 2022.

ATTEST:

CITY CLERK MAYOR
CERTIFICATION
I HEREBY CERTIFY that the above and foregoing Resolution No. 5551 was duly passed and

adopted by the City Council of the City of Chandler, Arizona, at a regular meeting held on the
day of , 2022, and that a quorum was present thereat.

CITY CLERK

APPROVED AS TO FORM:

Qw)

CITY ATTORNEY )

Exhibit “A”

Intergovernmental Agreement between the City of Chandler, Arizona and
the City of Phoenix, Arizona to Establish Rinchem Company, Inc. within Foreign Trade Zone