Date: April 23, 2026
To: The Honorable Chair and Members From: Jan Lesher
Pima County Board of Supervisors County Administrator
Re: Progress Update on Project Blue Development
At the April 7, 2026, Board of Supervisors meeting, Supervisor Scott requested an update
on the status of Project Blue development. The following outlines the key details to date.
Background
On June 17, 2025, the Board of Supervisors approved a specific plan zoning change and a
land acquisition agreement with the developer for the data center project known as Project
Blue. Subsequently, on December 24, 2025, the developer closed on the sale of the land,
which was conveyed to the developer from Pima County. The site is located in unincorporated
Pima County on land now formerly owned by Pima County at the Southeast Employment and
Logistic Center near the Pima County Fairgrounds.
The project is expected to deliver up to $3.6 billion worth of capital investment through the
construction of a data center campus, comprised of approximately 10 buildings and is
expected to employ approximately 180 people by the third year at an average annual salary
of $64,000.00 per year, with a contractual requirement as part of the land sale agreement
of at least 75 employees at a minimum of $75,000 per year.
Clay Target Center Relocation
As part of the development of the project, the developer committed to paying for the removal
and relocation of the existing County-owned Clay Target Center (CTC). This included an initial
$100,000 non-refundable payment from the developer to Pima County to pay for a feasibility
and relocation study for the existing CTC facility. In addition to this $100,000 payment, the
developer was obligated to provide a not to exceed amount of up to $6.5 million to Pima
County to pay for the actual relocation and construction of the new CTC facility. Below is a
summary of events regarding the CTC Relocation effort:
• July 2025: County received $100,000 non-refundable deposit to support CTC
Relocation cost feasibility analysis.
• August 2025: County issued a Delivery Order to Kimley-Horn and Associates (KHA)
to evaluate potential sites, develop layout options, and prepare conceptual cost
estimates.
• October 2025: KHA submitted final feasibility study, identifying potentially viable site
for new CTC facility, located west of S. Harrison Rd. and south of the existing SE
Regional Park Shooting Range (Attachment 1).
The Honorable Chair and Members, Pima County Board of Supervisors
Re: Progress Update on Project Blue Development
April 23, 2026
Page 2
• November 2025: Existing CTC closed.
• December 2025: Full funding provided to Pima County for the CTC relocation project.
• January 2026: Pima County Project Charter approved, advancing project to detail
design and construction. Construction Manager at Risk (CMAR) delivery method
selected as best approach to accelerate schedule and minimize CTC closure to the
public.
• January 2026: A public, qualifications-based solicitation for design services initiated
by Pima County Procurement, resulted in the selection of KHA, and later approved by
the Pima County Board of Supervisors at the April 7, 2026, Board of Supervisors
meeting.
• February 2026: A public, qualifications-based solicitation for CMAR services was
initiated by Pima County Procurement. An evaluation committee is currently in process
of developing a shortlist of respondents for interview scheduling.
Future components of the CTC relocation efforts will include commencement of design
services (April 2026), CMAR award at future Board Meeting (July 2026), early construction
activities (Q4 2026), and CTC reopen (Q3 2027).
Revenue Generated for Pima County
Project Blue generates revenue for Pima County including $20.85 million from the project’s
land transaction that closed on December 24, 2025, and an additional $507 million of
property-tax related revenue over 10 years as estimated in the economic benefit analysis.
Approval was received from the Board of Supervisors at the March 24, 2026 meeting, to
invest the one-time sales proceeds and a portion of the estimated ongoing annual tax revenue
in strategic County initiatives, shown in the following table.
The Honorable Chair and Members, Pima County Board of Supervisors
Re: Progress Update on Project Blue Development
April 23, 2026
Page 3
The ongoing annual tax revenues to Pima County over the next four years have been
estimated by the Pima County Finance & Risk Management Department to be:
2027: $2,794
2028: $2,839
2029: $1,453,325
2030: $3,674,207
These amounts may vary, as they are dependent on timing of construction as well as the
issuance of Certificate of Occupancy.
Project Permitting
Permitting has progressed for the project as outlined in the table of permits included as
Attachment 2. This information is also available on the Project Blue FAQ page on the County’s
website.
Pima County staff remain available if you have questions or require additional information.
JKL/dym
Attachments
c: Carmine DeBonis Jr., Deputy County Administrator
Steve Holmes, Deputy County Administrator
Chad Kazmar, Deputy County Administrator
Art Cuaron, Director, Finance and Risk Management Department
Lauren Ortega, Director, Development Services Department
Victor Pereira, Director, Parks and Recreation Department
Heath Vescovi-Chiordi, Director, Economic Development Department
ATTACHMENT 1
ATTACHMENT 2
Record No. Opened Date Status Record Type
P26RW00417 3/31/2026 Request for Corrections Right of Way Permit
P26BP01453 3/4/2026 Approved Other Structures Permit
P25SC00055-01 2/20/2026 Request for Corrections Revision
P25EQ01839 12/16/2025 Issued Septic Transfer
P25SC00120-01 12/10/2025 Approved Revision
P25WC00257 11/26/2025 Issued Capacity Letter
P25SC00140 11/24/2025 Request for Corrections Site Construction
P25RW01580 11/13/2025 Request for Corrections Right of Way Permit
P25RM00022 10/24/2025 Approved Riparian
P25SC00126 10/23/2025 Withdrawn Site Construction
P25SC00120 10/9/2025 Issued Site Construction
P25WC00157 7/17/2025 Issued Capacity Letter
P25WC00156 7/17/2025 Issued Capacity Letter
P25CC00061 7/16/2025 Authorized S10CofCov - Site
P25SC00055 5/9/2025 Issued Site Construction
P25SP00002 3/27/2025 Approved Specific Plan
P24WC00352 12/11/2024 Issued Capacity Letter