City of Coolidge


18-22; a Resolution of the Mayor and City Council of the City of Coolidge Arizona, Supporting Nikola Corporation's Application for Foreign Trade Zone (FTZ) Status Within Phoenix, Arizona Foreign Trade Zone #75 and Authorizing Staff to Take Any Further Action Necessary Including Execution of Application Documents in Relation to This FTZ Within the Greater Phoenix Area Foreign Trade Zone.


Department:City Manager DepartmentSponsors:


  1. Printout
  2. 18-22 Supporting Nikola's Application for FTZ status (00039149xEC0B8) (This file has not yet been converted to a viewable format)
  3. Resolution No. 18-18 with Exihibit



It is recommended that the Mayor and City Council approve the Resolution supporting the application of Nikola Corporation for Foreign Trade Zone Designation within Phoenix, Arizona FTZ #75.



The City's Economic Development Agreement with Nikola Motors provides that the City will support and assist with the designation of Nikola Corporation's manufacturing facility as a Foreign Trade Zone under FTZ #75 (Phoenix, AZ Foreign Trade Zone). This designation allows for a change in the property tax assessment ratio from 18% to 5%, thus reducing the real and personal property tax rates by about 72.2%.  Other benefits of the Foreign Trade Zone are:


-duty deferral until merchandise enters U.S. territory;

-duty elimination on exports;

-duty elimination on scrap and defective merchandise;

-duty reduction on foreign components which carry a higher duty rate than the finished article;

-no time constraints on storage;

-shorter transit time - direct delivery; and

-weekly entries



The Project would pay $90,125,779.00 without the FTZ as compared to the $25,035,361.00 with the FTZ.  This is one of the many reasons the company decided to locate their headquarters and manufacturing operations in Arizona. 

Meeting History

Sep 10, 2018 7:00 PM  City Council Regular Meeting

D.S. Director Lopez advised Council of Resolution No. 18-22; which supports the application by Nikola Corporation to apply for a Foreign Trade Zone (FTZ) #75 designation within the Greater Phoenix Area Foreign Trade Zone (FTZ) for their manufacturing facility. There was discussion.

MOVER:Jimmy Walker, Councilmember
SECONDER:Jacque Hendrie-Henry, Vice-Mayor
AYES:Jon Thompson, Jacque Hendrie-Henry, Jimmy Walker, Steve Hudson, Rob Hudelson, Tatiana Murrieta, Joseph Marsh