With a vote of 5-0, the Pinal County Board of Supervisors, approved a development agreement between the County, Lucid Motors and the City of Casa Grande.
The County has committed to purchase approximately 500 acres of land for almost $30 million dollars ($29,940,000) and lease it back to Lucid for a period of 4 years. Lucid has the option to acquire the land at the end of year 4 at that price. Debt service payments are not known until bonds are secured, but the county is planning to pay interest only payments for the four years and paying off the full amount at the end of the term.
Casa Grande has finalized the annexation to bring all of the parcels included in the project site into the incorporated city limits.
Below is an overview of what else is included in the full development agreement (which can be read here.):
- Rebate of Construction Sales Tax – The developer would pay the construction tax pursuant to the code. The City would rebate 55% of the taxes (2.2%) to be applied to permit and development impact fees. There would be a “true up” period after the final certificate of occupancy is issued.
- Temporary Office Space – without charge for rent, city and county will accommodate up to 75 full time employees. We have discuss the potential of using space which is available in Casa Grande and is owned by Central Arizona College.
- Orientation Program – For up to 4 years, Casa Grande shall provide an orientation project to employees relating to Casa Grande.
- Marketing – For up to 4 years, City shall provide marketing support to developer on same terms offered to other companies relocating to Casa Grande on the Economic Development website.
- Thornton Road Improvements – City and County will improve Thornton Road into a 4 lane road. This will transpire when Lucid has created 583 full time positions. This will be improved from Gila Bend Hwy to I-8. This project is currently in the County Capital Improvement Plans.
- Selma Road – City will construct 2 lanes from Thornton Road to project’s truck entrance. These improvements will be completed prior to production of vehicles. The City has received an ESP grant to help pay for these improvements.
- Railspur at Peters Road – The purchase price for the land includes the establishment of an escrow account of $402,119 in order to fund the construction of a rail crossing at Peters Road. The City will make the necessary roadway improvements when the spur is constructed. Ownership and maintenance of the crossing are passed through the county to Lucid. In the event of default, County has ability to close the crossing.
- Traffic Signals – Thornton and Selma and Thornton and Peters will be constructed by the City at time that warrants are met.
- Sewer Connection/Reservation- The sewer will not need to be extended for this project. For a period of 7 years, the developer shall reserve 1,000,000 gallons of capacity in the wastewater and treatment systems.
- Naming of Road- Developer may name access road off Thornton.
- Renaming Thornton Rd – After the developer has hired 1,114 full time employees and has exercised its option to purchase the land, development may request that Thornton Rd be renamed by Developer.
- Foreign Trade Zone – The City and County will support application to designate elements eligible into a Foreign Trade Zone.
- Workforce Training Facility – The City would commit $250,000 per year (APS Franchise Fees) for workforce development. This is a 6 year commitment for a total of $1,500,000. The contribution would be disbursed contingent on Lucid meeting annual employment thresholds. If the company does not meet the projections, they would receive a pro-rated amount and the difference would be paid if the target is met in future years. The commitment would end at year 6.
- Air Quality permit – County will credit Air Quality permits for up to 10 years. This will be a reimbursement, and is performance based. Estimated value is $114,000.
- Business Assistance Program – Existing county program that provides reimbursements for utility hook-ups, employee training/relocation. Max of $200k.
- Developer commitments – must commence construction of horizontal improvements within one year of date of agreement and complete within 2 years. Must place approximately $6.7 million in escrow to cover installation of horizontal improvements. If they fail to do that, county can withdraw funds and complete to make property development ready. Must complete initial vertical construction phase within four years and be open for business.
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