Title
RSW Group, LLC New Hangar Lease at Phoenix Deer Valley Airport (Ordinance S-51893) - District 1
Description
Request to authorize the City Manager, or his designee, to enter into a new executive hangar lease with RSW Group, LLC (RSW) at Phoenix Deer Valley Airport (DVT) for five years with three one-year options to extend.
Report
Summary
RSW currently occupies an executive hangar at DVT, with a premises consisting of a 10,000 square foot hangar building and approximately 2,924 square feet of office and shop space where the company refurbishes and sells retired military jet aircraft. RSW requests to enter into a new hangar lease for five years plus three one-year options to extend.
Contract Term
The new lease term will be five years, which will commence retroactively on November 1, 2024, and expire on October 31, 2029, with three one-year renewal options to extend at the sole discretion of the Aviation Director.
Financial Impact
Rent for the first year of the new lease will be approximately $170,079 at the rate of $13.16 per square foot. Rent will be adjusted annually by the Phoenix-Mesa-Scottsdale Consumer Price Index or three percent, whichever is greater. Total anticipated revenue over the duration of the new lease will be approximately $1,512,407 if all extension options are exercised.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board, Business and Development Subcommittee recommended approval of the item on April 3, 2025, by a vote of 4-0.
The Phoenix Aviation Advisory Board recommended approval of the item on April 17, 2025, by a vote of 6-0.
Location
Phoenix Deer Valley Airport: 702 W. Deer Valley Road
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.