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    Home » Planning & Development » Pima County to Move on Specific Area Plan Component
    Planning & Development

    Pima County to Move on Specific Area Plan Component

    BEX StaffBy BEX StaffJune 3, 2025No Comments4 Mins Read
    Credit: Kimley-Horn & Associates/Pima County
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    By Roland Murphy for AZBEX

    New details and speculation have emerged on plans in Pima County for the Southeast Employment & Logistics Center Specific Plan, a 290-acre parcel at the NWC of Houghton & Brekke roads in Tucson.

    AZBEX was the first outlet to report on the plan, which includes data center, biomedical R&D, manufacturing and logistics, and warehouse and office uses. (AZBEX, April 29)

    The Pima County Planning and Zoning Commission has recommended approval for the proposed land uses, and the Board of Supervisors will meet either this month or next to review a purchase agreement for the land, which has been appraised at $20.875M. The City of Tucson would then annex the land.

    The potential buyer is a company the County has code-named “Project Blue,” according to an article in Arizona Daily Star. County Supervisor Steve Christy told Daily Star the space would be a data center, which is one of the three illustrative concept designs in the original County documents. The development is proposed with 10 data center halls of 220KSF and two additional logistics and administrative buildings.

    In a memo to the Board, County Administrator Jan Lesher referred to Project Blue as a company that “operates in the advanced and emerging technology industry sector.”

    The memo predicts Project Blue would create approximately 180 jobs post-construction, with an average salary of $64K and a projected annual economic impact of $63.7M and labor income of $7.3M.

    Lesher estimated construction could begin in 2026 and would last for approximately two years. Operations could begin in 2029.

    Construction costs are estimated at around $1.2B, and the project would generate more than 3,000 construction jobs and another 2,000 indirect jobs.

    For the period of 2026-2035, Project Blue is predicted to create $97.3M in taxes and fees for Tucson and $152M in tax revenue for Pima County and other taxing areas, according to Lesher.

    Project Blue expects to use reclaimed water from the City of Tucson supplied by Tucson Water, according to the article. Despite stating he has not been briefed on the project and was unaware of specifics, Tucson City Councilmember Kevin Dahl expressed concerns, saying, “We shouldn’t consider reclaimed water a free resource,” and adding he has many questions.

    The Board recently met with Project Blue and lending companies associated with the proposed purchase agreement.

    18-mile Reclaimed Water Line a Possibility

    A separate Daily Star article reported Project Blue is negotiating with Tucson Water “to have an 18-mile pipeline built to carry reclaimed, treated sewage effluent to the project.”

    Project Blue would pay to have the line built, which would help make sure the project does not impact Tucson’s drinking water supply, according to Supervisor Matt Heinz. Officials with the County and Tucson Water have not provided estimates for the data center development’s overall expected water use, the article says. City officials said they cannot discuss the project due to a non-disclosure agreement.

    The reclaimed water pipeline was discussed in the meetings between County officials, Project Blue and financiers, according to Christy. “They did not go into any kind of detail. They were going to be making sure that any water usage, any water supply included in the project was in a responsible manner that would not only suit their needs, but what they think would be in the best interest of the community,” he said.

    Heinz said the reclaimed water may be phased in, adding there could be short-term use of some drinkable water in the interim. He stressed the goal is the creation of the 18-mile, two-inch pipeline.

    A Possible Defense Contractor at the Site?

    The Daily Star also reported a second project that could be developed on the southeast side of the site, where the illustrative concepts show light industrial uses, which may be for a hypersonic missile company. According to the article, U.S. Sen Mark Kelly has proposed a Tucson site to defense company Castelion Corporation for expansion of the company’s domestic manufacturing and testing.

    Kelly’s pitch for Tucson included the University of Arizona’s College of Engineering aerospace programs and said the state is a national hub for aerospace and defense.

    A Tucson spokesperson said the City has a nondisclosure agreement in place with an aerospace and defense company not directly associated with Project Blue. The representative said he had no knowledge of any discussions with Castelion and the NDA prevented him from discussing any parts of the agreement.

    Castelion Corporation City of Tucson Data Centers Industrial Jan Lesher Kevin Dahl Mark Kelly master plan office Other Commercial Pima County Board of Supervisors Pima County Planning and Zoning Commission Private Project Blue purchase agreement Southeast Employment & Logistics Center Specific Plan Steve Christy Tucson Water University of Arizona College of Engineering warehouse/manufacturing wastewater Water wet utilities
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