City OKs $20M to help Intel’s water needs, other work - SanTan Sun News SanTan Sun News

City OKs $20M to help Intel’s water needs, other work

October 26th, 2021 SanTan Sun News

By Ken Sain, Staff Writer

Chandler City Council approved spending up to $20 million dollars on infrastructure and water rights to support Intel’s expansion of its Ocotillo campus.

The Council has also agreed to spend up to an additional $10 million for public improvements to the intersection of Alma School and Ocotillo roads if a traffic impact study shows a need.

Most of the money is going to acquire more water rights the company will need as part of its expansion, which includes two new manufacturing facilities. City officials estimate it will cost $12.1 million to acquire another 1.1 million gallons per day.

“All of the investments will be for the public benefit, not just for Intel,” said Micah Miranda, the city’s economic development director.

Miranda said it’s those other benefits to the community that allows the city to make the investment and therefore the agreement does not run afoul of the Gift Clause in the state constitution.

The rest of the funds would pay for the design, construction and financing needed to deliver potable water to Intel.

They also will cover the cost of design, construction and financing of a transmission line to move 11 million gallons a day of reclaimed water between the city’s airport and Ocotillo water reclamation facilities.

Any money left unspent could be used on a future infrastructure project.

Intel’s expansion will bring thousands of jobs to Chandler.

“This is probably the state’s largest economic development project ever,” Miranda said.

Intel is expanding to help it deal with the worldwide microchip shortage that has hurt supply lines globally.

The company has spent millions in the past couple of years expanding its water treatment facilities so that it can recycle all the water used at the manufacturing facilities.

“[This is] the largest private construction project, not only in Arizona, but in the country,” Micah told Council. “In order to make that happen the city needs to put some public infrastructure in the works.”

Mayor Kevin Hartke said this is a big step for the city.

Noting that when the fabs are built, “Intel in Chandler will be the world’s largest semiconductor manufacturing plant,” Hartke gushed, “That’s really exciting and a point of pride for us.”

Miranda said development agreements like this one have helped build Chandler’s reputation as a friendly place for businesses to set up shop.

“One of the best selling points we have, is in Chandler we know how to get stuff done,” he said. “Our team is the best in the business. We can deliver on whatever we say we’re going to do.”

 

One of the best selling points we have, is in Chandler we know how to get stuff done, our team is the best in the business. We can deliver on whatever we say we’re going to do.

– Micah Miranda

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