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RESOLUTION NO. 5770 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHANDLER, ARIZONA, AUTHORIZING SUPPORT FOR A FOREIGN TRADE ZONE DESIGNATION AND RELATED APPLICATION BY AES DIRECT EXPRESS, LLC, D/B/A SKU DISTRIBUTION FACILITY LOCATED IN CHANDLER, ARIZONA, AND APPROVING RELATED INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF PHOENIX. WHEREAS, AES Direct Express, LLC d/b/a SKU Distribution (“SKU Distribution”), is an order fulfillment, e-commerce warehousing, and e-commerce shipping services provider, and leases a distribution facility at 2225 E. Germann Road, Suite 10, in Chandler, Arizona (“Site”); and WHEREAS, without receiving Foreign Trade Zone (“FTZ”) designation for its distribution facility, SKU Distribution and its importer/exporter clients are put at a competitive disadvantage; and WHEREAS, Chandler desires to support SKU Distribution in applying for FTZ Operator status at the Site under Foreign Trade Zone No. 75, provided that SKU Distribution 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, SKU Distribution 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 SKU Distribution for the property at the Site to be established, operated, and maintained as a foreign-trade zone usage-driven site; and WHEREAS, pursuant to A.R.S. § 11-952, Chandler and Phoenix are authorized to enter into an Intergovernmental Agreement memorializing their agreement to work together to establish an FTZ designation for the Site. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chandler, Arizona, as follows: Section 1. Authorizing the City of Chandler’s support of a Foreign Trade Zone designation for the SKU Distribution facility located at 2225 East Germann Road, Suite 10, in Chandler, Arizona. Section 2. Authorizing the City of Chandler’s support of SKU Distribution’s application for Foreign Trade Zone Operator status under Foreign Trade Zone No. 75. Resolution 5770 Page 2 Section 3. Approving an Intergovernmental Agreement between the City of Chandler and the City of Phoenix to memorialize the agreement of the two cities to work together to assist SKU Distribution in its efforts to obtain Foreign Trade Zone Operator status for the Site and authorizing the Mayor to execute the Intergovernmental Agreement on behalf of the City of Chandler. PASSED AND ADOPTED by the City Council of the City of Chandler, Arizona, this ______ day of ___________________, 2024. ATTEST: ___________________________ _________________________ CITY CLERK MAYOR CERTIFICATION I HEREBY CERTIFY that the above and foregoing Resolution No. 5770 was duly passed and adopted by the City Council of the City of Chandler, Arizona, at a regular meeting held on the _______ day of ___________________, 2024, and that a quorum was present thereat. ___________________________________ CITY CLERK APPROVED AS TO FORM: _____________________ CITY ATTORNEY