Title
Ground Lease with Custom Pipe and Fabrication, Inc. at Phoenix Sky Harbor International Airport (Ordinance S-46387)
Description
Request to authorize the City Manager, or his designee, to enter into a ground lease (Lease) with Custom Pipe and Fabrication, Inc. (Custom Pipe) at 149 S. 27th St. for two years with no options to renew.
Report
Summary
Custom Pipe currently operates a distribution warehouse for pipes located at 302 S. 28th St. Custom Pipe requested to lease an Aviation owned parcel that is approximately 70,000 square feet. The Aviation property is located at 149 S. 27th St. and Custom Pipe will use this property to store products. In addition, at its sole expense, Custom Pipe may install additional fencing and erect shade structures.
Contract Term
The term of the Lease will be two years with no options to renew.
Financial Impact
Annual rent will be approximately $73,500 ($1.05 per square foot), adjusted annually based on the Phoenix Mesa Consumer Price Index. Total anticipated revenue over the term of the Lease will be approximately $147,000.
Location
149 S. 27th St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.