Title
Northwest Industrial Airpark, Through-the-Fence Agreement (Ordinance S-44493)
Description
Request to authorize the City Manager, or his designee, authorization to amend the agreement between the City of Phoenix and Northwest Industrial Airpark Association (NWIAA), to extend the through-the-fence agreement for a total of 30 years from the date the amended agreement is signed. The anticipated annual revenue for this amended agreement will be approximately $5,900, plus an easement fee that is currently $200.
Report
Summary
NWIAA currently has a through-the-fence agreement at Deer Valley Airport (DVT). The current agreement term is 20 years, with four, five-year options to extend. NWIAA is currently in their third option, which will expire on June 30, 2021. The current agreement allows tenants of NWIAA, who own aircraft and have entered into a Field Use Permit (FUP), to taxi from NWIAA, located at 1507 W. Parkside Lane, "through-the-fence" to the DVT. The access allows the aircraft owners permitted by NWIAA to utilize the taxiways and runways to take off and land at DVT.
Currently NWIAA pays a $200 annual utility easement fee. NWIAA has requested additional agreement term in order to make an investment in the taxiway located on their property. In exchange for this extension, NWIAA will pay the City an access fee for all based aircraft that utilize the gate; the fee will be based on the average tie down fee charged to tenants at DVT and adjusted annually by the Consumer Price Index (CPI). The updated agreement will include requirements from the Federal Aviation Administration (FAA) to ensure grant assurance compliance. The amendment will also include updated standard agreement language.
Contract Term
The contract term shall be 30 years from the date the amended agreement is signed, with no options to extend.
Financial Impact
The anticipated annual revenue for this amended agreement will be approximately $5,900, plus an easement fee that is currently $200. The annual revenue is subject to change based on the number of aircraft that are based at NWIAA.
Concurrence/Previous Council Action
This item was recommended for approval by the Downtown, Aviation, Economy and Innovation Subcommittee on April 4, 2018 by a vote of 3-0.
Location
Phoenix Deer Valley Airport, 732 W. Deer Valley Road.
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.