THE CHANDLER ARIZONAN | WWW.CHANDLERNEWS.COM | JULY 25, 2021
33 BUSINESS
Chandler commits $14 million to power Intel expansion BY KEVIN REAGAN Arizonan Staff Writer
S
alt River Project and Chandler have entered into a special agreement to ensure Intel will have enough electricity to power the $20-billion expansion of its Ocotillo campus. The city and SRP agreed last month to share some of the costs for extending a high-voltage transmission line through south Chandler to connect to the sprawling Ocotillo campus. If approved by the Arizona Corporation Commission, the line will run from the Schrader substation near Ocotillo Road and Exeter Street to the Henshaw substation near Price and Germann roads. The route would run beneath Fulton Elementary School, snake around Snedigar Sports Complex, and cut through a housing subdivision before reaching the Intel. Chandler will share in some of the
costs by committing $14.5 million of the city’s funds for relocating utility lines that may interfere with the new route. About half of the city’s $14-million share will be reimbursed through funds allotted by the SRP municipal aesthetics program, which annually disperses funds for municipalities’ utility infrastructure improvements. Chandler plans to obtain grant funding to cover the remaining half of its cost for the transmission line. “The city will also seek additional funding opportunities to offset the costs associated with the utility work through the state or other programs intended to help support public infrastructure projects required for semiconductor manufacturing,” a city memo states. The goal of forging a deal with SRP is to facilitate one of Arizona’s biggest economic development projects, while still ensuring surrounding neighborhoods
won’t see their streets uprooted with new infrastructure to support Intel’s growth. Intel in March announced plans to build two new fabrication facilities at its south Chandler campus over the next three years. The development will create 3,000 permanent high-tech, high-wage jobs; over 3,000 construction jobs; and approximately 15,000 local long-term jobs in support companies, according to the tech giant. Its investment is part of its “IDM 2.0” Initiative – a major evolution of an “integrated device manufacturing” model that Gelsinger said makes Intel “the only company with the depth and breadth of software, silicon and platforms, packaging, and process with at-scale manufacturing customers can depend on for their next-generation innovations.” Intel is in a fierce global competition for a bigger share of the semiconductor market at a time when a shortage of chips has impacted an array of indus-
tries, from automobile manufacturing to medical device development. SRP will submit an application to the Corporation Commission for permission to extend its transmission line and hopes to obtain approval by early 2022. That open hearing before the commission will follow town halls that the utility provider must conduct for south Chandler residents and businesses to weigh in on the plan. No dates have yet been set. The city and SRP have already promised that residents living around the line’s route should not see too much impact by its construction. “The parties have agreed to work with each other during the installation of the transmission lines to minimize disruption to the residences, schools, and businesses along the corridor,” the city memo states. About half of the line will be placed
see INTEL page 35
Chandler eyes private developers for housing hope BY KEVIN REAGAN Arizonan Staff Writer
T
he Chandler Public Housing Authority is planning to ask federal authorities to allow private developers to revitalize its stock of homes and apartments before it becomes overburdened by maintenance costs. As city-owned homes and apartments continue aging and rack up maintenance fees, the authority wants to curb costs through a federal program that converts public housing to a system that operates similar to Section 8 vouchers. If authorized by the U.S. Department of Housing and Urban Development, a private developer could enter into an agreement with Chandler to build or renovate housing on city-owned land in exchange for valuable tax credits. Eligible tenants would then apply to
This apartment complex for low-income people in North Phoenix is being built by Gorman & Company, which is negotiating similar public housing projects with Chandler officials. (Special to The Arizonan) live in one of the refurbished units and the government would subsidize up to 70 percent of their rent. These public-private partnerships would fall under the government’s Rental Assistance Demonstration program,
which has become increasingly popular throughout the Valley due to its ability to incentivize the construction of more affordable housing in expensive neighborhoods. Nearly a dozen RAD projects have
been executed across Arizona over the last few years and Chandler is looking to be the latest municipality to participate in the program. Amy Jacobson, the city’s housing manager, said converting some of Chandler’s housing stock to a RAD model would help the city avoid spending up to $22 million in preserving its old properties. “We are challenged with an infrastructure issue in public housing,” Jacobson said. “We do not get enough HUD capital dollars in order to address these capital needs in our properties.” HUD gives Chandler about $700,000 annually for capital expenses, Jacobson said, and that allowance won’t be enough to meet the city’s growing infrastructure needs to replace old roofs and corroded pipes.
see HOUSING page 36
