Resolution 5770

City of Chandler — Regular Meeting (2024-03-21)

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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