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File #: R2025-083    Version: 1 Name:
Type: resolution Status: Passed
File created: 8/6/2025 In control: City Council Meeting
On agenda: 9/3/2025 Final action: 9/3/2025
Title: Termination of Economic Development and Lease of Sewer Capacity Agreement
Attachments: 1. 1. RES Termination of Economic Development and Lease of Sewer Capacity Agmt., 2. 2. AGR Termination of Economic Development and Lease of Sewer Capacity Agmt

 

 

STRATEGIC OUTCOMES

ACTION

Department:

Safe & Prosperous

Motion

City Administration

Active & Appealing

Resolution

 

Respected & Responsible

Ordinance - Introduction

Division:

Connected & Engaged

Ordinance - Adoption

Administration

Unique & Creative

Public Hearing

 

TITLE:

title

Termination of Economic Development and Lease of Sewer Capacity Agreement

 

end

 

SUMMARY RECOMMENDATION:

Summary Recommendation

Approve the termination of a 2022 Economic Development and Lease of Sewer Capacity Agreement with Dole Fresh Vegetables, Inc. (City Administration) (Jay Simonton).

 

end

 

STRATEGIC OUTCOME:

This item furthers City Council’s strategic outcome of Respected and Responsible.

 

REPORT:

On April 13, 2022, Dole Fresh Vegetables, Inc. (Dole) and the City entered into an Economic Development and Lease of Sewer Capacity Agreement (2022 Agreement).  At the time, Dole planned to invest more than $31 million in equipment and construction at Dole’s facility located at 3725 S. Avenue 3E in Yuma, Arizona (Yuma Facility).  The 2022 Agreement has a term of five years and was recorded with the Yuma County Recorder (Fee # 2022-13479) pursuant to A.R.S. § 9-500.05. 

 

In August 2022, the City paid Dole an incentive of $26,200.00 as a Skills Training Grant under Paragraph 8 of the 2022 Agreement.  However, due to their closing of the facility, Dole recently returned the $26,200 to the City.

 

Upon returning the $26,200, Dole requested an Amendment to the 2022 Agreement (1) certifying that neither Party is in default of any other obligations or duties set forth in the 2022 Agreement and (2) terminating the 2022 Agreement upon execution of the Amendment. City staff supports the Amendment sought by Dole.  The 2022 Agreement is no longer beneficial after Dole closed the Yuma Facility on November 10, 2023.

 

This Resolution authorizes the City Administrator to execute and record the Amendment terminating the 2022 Agreement.

 

FISCAL REQUIREMENTS:

CITY FUNDS:

$ 0.00

 

BUDGETED:

$ 0.00

 

STATE FUNDS:

$ 0.00

 

AVAILABLE TO TRANSFER:

$ 0.00

 

FEDERAL FUNDS:

$ 0.00

 

IN CONTINGENCY:

$ 0.00

 

OTHER SOURCES:

$ 0.00

 

FUNDING: ACCOUNT/FUND #/CIP

-

 

TOTAL

$ 0.00

 

 

FISCAL IMPACT STATEMENT:

NONE

 

 

ADDITIONAL INFORMATION:

SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:

 

NONE

 

IF CITY COUNCIL ACTION INCLUDES A CONTRACT, LEASE OR AGREEMENT, WHO WILL BE RESPONSIBLE FOR ROUTING THE DOCUMENT FOR SIGNATURE AFTER CITY COUNCIL APPROVAL?

 

Department

City Clerk’s Office

Document to be recorded

Document to be codified

 

Acting City Administrator:

Date:

John D. Simonton

8/26/2025

Reviewed by City Attorney:

Date:

Richard W. Files

8/26/2025