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Council approves joint development agreement for Amcor site; city to fund and reimburse specific road segments
Summary
Council approved a joint development agreement with Vistancia and Amcor Technologies that commits the city to construct or reimburse certain roadway segments to support the proposed Amcor facility, with liquidated‑damage protections if the private project does not proceed.
The Peoria City Council on Oct. 15 approved a joint development agreement (31R) to build specified public infrastructure supporting Amcor Technologies’ planned facility in the Vistancia area, with the city voting 6‑1 in favor.
Deputy City Manager Mike Faust said the development agreement implements commitments the council previously made in an economic development agreement tied to Amcor. The action authorizes city construction and reimbursement for two road segments adjacent to the Amcor site — including the westward Skies arterial on the property’s south side and the full street on the property’s north boundary (Peak View) — and clarifies how reclaimed water lines will be provided.
Faust said the city currently forecasts about $4.2 million in direct roadway construction costs for the segments the city agreed to fund, and that the FY25 capital improvement program includes $4.4 million for related roadway work. He cautioned that intersection upgrades at Desert Cactus/Westward Skies may produce additional costs (he estimated potential $500,000 order‑of‑magnitude impacts) and said the city would return to council for any CIP amendments required.
The agreement contains two protections for the city if Amcor does not complete its commitments: a capital‑investment liquidated‑damages provision tied to estimated sales‑tax generation (staff cited up to $6 million) and a jobs‑related liquidated‑damages component (staff cited up to roughly $2.4 million) tied to the company’s job commitments. Faust said ASLD has allowed the city to construct Westward Skies early and that the state will agree to reimburse up to 70% of certain design and construction costs for that roadway, capped at $3 million, when successor purchasers take parcels at auction.
Faust and staff reiterated that the commitments in the joint development agreement reflect the items already agreed in the Amcor economic development agreement and in the FY25 CIP; any further incentives would require separate council action. After briefing the council, staff recommended approval; the resolution passed 6‑1.
