MOA between County and Beale Infrastructure Ensures Water, Energy, and Economic Commitments for Houghton Data Center Project

County and Beale Infrastructure

PIMA COUNTY, ARIZONA (December 17, 2025) — The labor agreement for the Houghton Road data center project will be between Beale Infrastructure’s selected general contractor and the applicable unions. It will follow the terms of the North American Building Trades Unions (NABTU). This agreement will outline the commitments made regarding the use of union labor on the project.

Pima County Board of Supervisors Chairman Rex Scott has issued a letter clarifying the purpose, scope, and enforceable provisions of the binding Memorandum of Agreement (MOA) between Pima County and Beale Infrastructure regarding the proposed Houghton Data Center project. The binding Memorandum of Agreement governing the project follows the City of Tucson’s decision not to annex the site. The agreement establishes enforceable requirements related to water use, energy supply coordination, renewable energy commitments, and economic impacts.

The project was initially structured with the expectation of coordination between two jurisdictions, with certain commitments anticipated to be addressed through a development agreement with the City of Tucson. After annexation was denied, Pima County entered into a binding contract to ensure that the developer’s representations and commitments would be formally documented and subject to defined compliance mechanisms.

The MOA significantly modifies earlier assumptions related to water use. The agreement requires the data center to operate a closed-loop cooling system that recirculates minimal quantities of water. The Arizona Department must approve any water use associated with the project of Water Resources and must comply with Pima County’s Preliminary Integrated Water Management Plan.

Given the project’s energy demands, Beale Infrastructure and Tucson Electric Power (TEP) were required to submit an Energy Supply Agreement to the Arizona Corporation Commission. That agreement applies only to the first phase of the project. Additional Energy Supply Agreements will be required for each subsequent phase. Under the MOA, TEP will serve the project using existing or currently planned resources, and Beale is required to meet financial and operational safeguards designed to protect other ratepayers.

The MOA also establishes a defined compliance framework for Beale’s commitment to match one hundred percent (100%) of its energy consumption with renewable energy. While municipalities lack the authority to regulate or compel utility operations, Beale has reaffirmed its commitment to renewable energy sourcing. Implementation of that commitment is dependent, in part, on county review and approval of proposed renewable sources, applicable permitting for supporting infrastructure, and regulatory processes outside the county’s direct control.

An independent, qualified third-party verifier, approved by both Beale Infrastructure and Pima County, will conduct annual verification to confirm whether the project’s energy usage has been matched with renewable energy as proposed.

Economic terms are a central component of the agreement. Beale will pay Pima County approximately $21 million for the sale of the project site. The County Administrator will engage the Board of Supervisors in determining the appropriate use of those proceeds to support county services and infrastructure.

The project represents a $3.6 billion capital investment—the largest of its kind in Pima County’s history. The development is projected to generate approximately $58.8 million in county tax revenues over ten years, in addition to increased revenues for local school districts and the State of Arizona.

The project is expected to create more than 180 full-time permanent jobs and over 3,000 construction jobs. Construction employment is expected to be filled primarily by local and regional skilled trades, including workers who currently commute outside the county for similar projects.

Public input on the project has included both support and opposition, with concerns raised regarding technology, water resources, and environmental impacts. The MOA establishes enforceable standards intended to balance economic development with environmental stewardship and public accountability, while acknowledging the regulatory limits of county authority.

Pima County will be responsible for monitoring compliance with the Memorandum of Agreement and ensuring that the provisions within its jurisdiction are implemented as outlined.




Pima County awards $838,390 in grants for emergency funding

Pima County
Interfaith Community Services has a food bank that was supported by the Pima County Board of Supervisors.

PIMA COUNTY, (Dec. 17, 2025) — The Pima County Board of Supervisors on Dec. 16 approved the allocation of $838,390 for Short-Term Crisis and Emergency Resources (STCER) grants.

The funding, approved Nov. 18 and drawn from rolled-over general funds from the prior fiscal year, will support food assistance, housing and utility support, transportation, legal services, and related needs.

The application period was open from Nov. 19 through Dec. 3 for area agencies previously approved to receive County funds from the Outside Agency program or other funding programs administered by the Community & Workforce Development Department (CWD).

CWD received 57 applications and, after an initial screening, forwarded 38 eligible applications requesting more than $3.3 million to the Outside Agency Citizen Review Committee. The committee met on Dec. 11 to review proposals and vote on funding recommendations to the Supervisors.

The Board approved the following awards in these categories (see full list of awards by category and organization):

  • Food Assistance — $332,000 (12 programs)
  • Housing and Utility Support — $221,000 (seven programs)
  • Transportation — $25,000 (one program)
  • Legal Services — $29,000 (one program)
  • Multiple Service Categories — $231,390 (eight programs)

Pima County provided the STCER grants in response to developments at the federal level that impacted agencies delivering critical services to community members.

The approval aligns with the County-approved Prosperity Initiative, a regional partnership working to reduce generational poverty. Specifically, the STCER grants support housing stability, transportation access and reinvestment in high-poverty neighborhoods.

“Our funding process was designed to ensure that agencies most impacted by recent federal changes can continue delivering essential services,” said CWD Director Dan Sullivan, whose department administers the Outside Agency program. “By addressing immediate needs such as housing and food support within the framework of the Prosperity Initiative, we are responding to crisis and advancing long-term community stability and economic opportunity.”

Funding will be immediately available to approved organizations.




Stabilized Retail and Infill Pad Drive $6.6M in Combined Sales at Canada Crossroads

Canada Crossroads

ORO VALLEY (December 16, 2025) — Canada Crossroads, a neighborhood retail center located at 10325 N. La Cañada Drive in Oro Valley, at the southwest corner of La Cañada Drive and Lambert Lane, sold for $5.685 million, reflecting continued investor demand for stabilized retail assets in the Northwest submarket.

The property consists of two buildings totaling 26,348 square feet on 4.25 acres, constructed in 2000. The center sold at approximately $215.77 per square foot, a valuation consistent with well-located strip centers along Oro Valley’s primary commercial corridor. At the time of sale, the center had 16 tenant spaces, two of which were vacant.

The transaction closed on November 12, 2025.

In a separate transaction, a commercial pad located immediately adjacent to the center sold for $925,000 to Glenwood Development Company, positioning the site for future ground-up retail development with a drive-thru component. The pad is located at 10375 N. La Cañada Drive,  at the southwest hard corner of La Cañada Drive and Lambert Lane, and is expected to support a single-tenant retail concept, further enhancing the Canada Crossroads corridor.

The seller, Peregrine Investments II LLC, conveyed both the neighborhood center and the pad in all-cash sales. The buyer of the retail center, Canada Crossroads Baceline, LLC, is a Denver-based private investor managed by Dusty Batsell, highlighting continued out-of-state capital targeting Southern Arizona retail. Glenwood Development Company acquired the pad as a separate transaction earlier, on October 22, 2025.

Both transactions were marketed by Matthews Real Estate Investment Services, with Josh Jenkins and Alex DeSoto representing the seller in both.

Canada Crossroads benefits from strong demographics, long-term residential growth, and proximity to established neighborhoods and employment centers. The dual sale underscores the premium investors and developers continue to place on Oro Valley retail, where limited new supply, stable tenancy, and infill pad opportunities support long-term performance.

For more information, contact Jenkins and DeSoto at 866.889.0550.

Source: RED Comp #12192 and #12161.