Peoria City Council on Aug. 28 approved a package of agreements and budget actions to relocate Amcor's proposed facility from Vistancia to an 834-acre Core 2 parcel in North Peoria, authorize related amendments to the Vistancia development agreement and advance about $33 million in city infrastructure spending that staff say will be recoverable under an intergovernmental agreement with the Arizona State Land Department.

City Manager Henry Darwin and Deputy City Manager Mike Faust presented the plan as a coordinated set of steps that included (1) a land-exchange agreement swapping 56 acres in Vistancia for 104 acres in Core 2 won at a state-land auction, (2) an amendment to Amcor's development agreement to reflect the new site, (3) a license agreement allowing Amcor limited construction access while the patent/escrow work finishes, (4) changes to the Vistancia development agreement to preserve a targeted end-user requirement and outline repurchase rights, and (5) a budget transfer for Core 2 public works. Council approved the motions in separate roll-call votes; each passed 7–0.

Why it matters: Council and staff said the acquisition and infrastructure strategy are intended to create a job- and tax‑generating employment core in North Peoria, accelerate commercial development and avoid imposing higher recurring taxes on residents. Faust characterized the package as “one of the coolest things” the city has pursued and said staff negotiated protections and payment mechanisms to limit exposure.

Key facts and approvals
- State land auction and purchase: The city successfully acquired the Core 2 certificate of purchase for the 834-acre parcel at the auction for a minimum bid/appraised value of $46,700,000; staff reported there were no other bidders. (Deputy City Manager Kevin Burke.)
- Land exchange: Agenda item 2R approved a land-exchange agreement that swaps a 56-acre Vistancia parcel (appraised unimproved at roughly $8.63 per square foot) for about 104 acres in Core 2 (appraised at roughly $1.29 per square foot). The exchange passed 7–0. (Motion: “Approve agenda item 2R as stated.”)
- Development agreement amendment for Amcor: Agenda item 3R approved the third amendment to Amcor’s development agreement to codify the new location, adjusted water and wastewater terms, fixed reclaimed-water pricing and penalties if Amcor does not build. The amendment passed 7–0. Staff said the DA sets phase 1 reclaimed-water use at up to 373,000 net gallons per day and a total (two-phase) cap of 686,000 net gallons per day; it also includes a fixed reclaimed‑water rate of $1.94 per thousand gallons and a 30% sewer-rate adjustment for the DA term. (Motion: “Approve agenda item 3R.”)
- License agreement for construction access: Agenda item 4R authorized a license agreement letting Amcor access the Core 2 site for grading and construction while the land patent/escrow process completes; the item passed 7–0. Staff said permits (including a mass-grading permit) must still be obtained before any work begins.
- Vistancia DA amendments and termination of a prior JDA: Agenda item 5R terminated a joint-development agreement no longer needed after the relocation. Agenda item 6R (Vistancia DA amendment No. 4) keeps the city’s commitment to a targeted end-user approach for portions of the Vistancia property, establishes a repurchase right for Vistancia if specified acreage remains unsold by Sept. 2030, and codifies half‑street improvement responsibilities; each item passed 7–0.
- Budget transfer for Core 2 (agenda item 8R): The council approved advancing approximately $33 million in near‑term expenditures (including patent/payment for purchased acreage, road construction, drainage work, APS electrical extensions and a sewer main/lift station) to support Core 2 development. Staff and the city finance director described those costs as recoverable either through the state-land intergovernmental agreement (IGA) or Amcor DA; the item passed 7–0.

Financial protections and recoveries
Staff described several layers intended to limit Peoria’s fiscal exposure: the state-land IGA reimburses the city for installed infrastructure tied to subsequent state land sales; the city expects construction-related transaction privilege taxes and a state reimbursement mechanism (cited in the presentation as statute 42‑5032.02) to offset core infrastructure costs; and the Amcor DA contains a “true‑up” provision so that if local and state revenues do not cover the prescribed public‑infrastructure share, Amcor will pay a defined shortfall (staff cited a potential Amcor check of up to about $31 million under a worst-case reconciliation scenario). Staff estimated construction sales tax proceeds attributable to the Amcor build at roughly $8–9 million and an additional state reimbursement of about $22–26 million, leaving a modeled residual that Amcor would cover if the other sources underperformed.

Project scope and schedule
Staff said the Amcor facility is planned as the same-sized manufacturing building that had been proposed in Vistancia, and that Amcor has committed about $1 billion in total investment across phases. Kate Powers (program manager) told the council a mass‑grading permit for the Core 2 site was reviewed and expected to be issued to allow earthwork to begin “the first part of next week.” The DA also contains deadlines for the city’s delivery of required public infrastructure, with one contractual date noted as Dec. 31, 2027; staff said they expect to meet that schedule and that late delivery would allow Amcor limited remedies in the contract.

Community concerns raised in public comment
During the council’s 30‑minute public‑comment period, multiple residents urged greater transparency, expressed water‑safety and fiscal‑risk concerns and said they felt excluded from earlier processes. Kathy Bartelheim, a Vistancia resident, said residents “fought to protect our home values, our health, our safety” and warned: “We will be watching every single thing this council does.” John Forsyth criticized the timing of the meeting and the fiscal scale of the project, saying, “we are gonna spend possibly $347,000,000 today,” and warning of a potential “white elephant” if market conditions change. Other speakers called for on‑site water safeguards (including proposals for closed‑loop systems) and questioned delegation of contract‑negotiating authority to staff. Council members and staff repeatedly pointed to an earlier Attorney General review that staff said found the city’s prior actions lawful; staff summarized that legal review during the presentation.

Economic-development and workforce components
Staff said the Core 2 acquisition is part of the larger Peoria Innovation Corps master plan (about 7,000 acres total) intended to produce employment, commercial and medical campus opportunities in the Northwest Valley. Economic Development Director Maria Loughner announced a signed letter of intent with HonorHealth for roughly 8 acres purchased and 8 additional acres desired for urgent care, outpatient surgery and related outpatient services; Loughner said HonorHealth will also work with the city on a request for proposals for additional land. Staff also said WestMEC has re-submitted interest for 5–7 acres to provide health-care career programming adjacent to proposed medical uses.

What council voted on (summary of motion outcomes)
- Item 2R (land exchange agreement): Approved 7–0. Outcome: land exchange authorized; staff to proceed to escrow/patent actions. Motion text on the record: “Approve agenda item 2R as stated.”
- Item 3R (Amcor DA amendment No. 3): Approved 7–0. Outcome: DA amendment adopted with updated water, sewer and financial reconciliation terms. Motion recorded: “Approve agenda item 3R.”
- Item 4R (license agreement): Approved 7–0. Outcome: license for temporary site access during escrow granted; permits still required. Motion recorded: “Approve agenda item 4R.”
- Item 5R (terminate prior JDA): Approved 7–0. Outcome: termination of a joint-development agreement tied to the prior Vistancia site. Motion recorded: approval as presented.
- Item 6R (Vistancia DA amendment No. 4): Approved 7–0. Outcome: targeted end-user language preserved; repurchase and half‑street terms added.
- Item 7R (CIP/budget appropriation for Vistancia half‑street work): Approved 7–0.
- Item 8R (Core 2 development budget transfer/patent payment and infrastructure): Approved 7–0. Outcome: council authorized advancing approximately $33 million in near‑term Core 2 infrastructure and patent/purchase payments; staff said costs are recoverable per IGA/DA terms.

Staff and next steps
City staff said they will finalize escrow/patent paperwork with the State Land Department, issue permits required for initial mass grading if the council’s actions stand, and proceed with infrastructure construction. Staff pledged continued community outreach and planning steps for the broader Peoria Innovation Corps master‑planning process; the presentation materials stated a planned phased entitlement and public‑engagement schedule extending through 2026 for the larger Pinnovation Corps plan.

Ending note
Council members and staff framed the votes as a coordinated economic‑development package intended to create local jobs and generate tax base; residents in the meeting urged careful oversight, stronger water protections and continued public input as the projects proceed. The council recessed briefly after public comment and completed the series of votes during the same special meeting.