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Peoria council approves $3.4 million transfer to cover APS power extension for innovation campus
Summary
The council approved a $3,412,667 budget transfer to cover a shortfall in APS’s final design and construction cost for an electric extension that will provide power to the Peoria Innovation Corps; staff said the city will be reimbursed and the work is expected to be closed out by Aug. 20 per APS schedule.
Peoria City Council voted 7-0 April 21 to approve a budget transfer of $3,412,667 to cover higher-than-expected costs for an Arizona Public Service electric extension that will provide power to the Peoria Innovation Corps.
City staff said APS’s final design and construction cost for the extension is $9,412,666, leaving the city with a shortfall against its $6,000,000 budget. “The final design and construction cost for this project is actually $9,412,666, resulting in a budget shortfall of just over $3,400,000,” said Dan Nissen, development and engineering deputy director.
The city is acting as the developer under an intergovernmental agreement approved in December 2024 with the Arizona State Land Department to provide backbone infrastructure, staff said. Nissen told the council that APS began construction after pulling permits on March 16 and that APS’s contractor expects to complete street work, restore sidewalks, irrigation and landscaping and close the project out by Aug. 20.
Council members asked whether the city would be reimbursed and how the work benefits planned private development. “That is correct,” Nissen said when asked whether the city will be reimbursed; staff also said completing backbone utilities in advance will accelerate private development and increase land value when parcels are sold. City staff said the extension will feed both Core 1 and Core 2 and that additional substation work being discussed with APS could expand capacity to support Core 3 in the future.
Councilmember Stokes asked several procedural questions about how the city’s role differs from private developers and whether this type of upfront municipal investment is typical. Nissen said it is typical for the utility’s preliminary costs to be updated after final design and contractor bids are available.
The motion to approve agenda item 15R—a transfer from CIP project EN00902 (Ashlar Hills) to CIP project EN00921 (APS infrastructure)—was moved and seconded and passed 7-0. With council approval, staff may proceed with the transfer and the construction work under the existing APS schedule.
The council did not amend the transfer; staff said they will pursue reimbursements per the earlier agreements and return with any additional information as needed.
