Title
Executive Hangar Lease at Phoenix Sky Harbor International Airport (Ordinance S-47493)
Description
Request to authorize the City Manager, or his designee, to enter into an Executive Hangar Lease with Modern Industries, Inc. at Phoenix Sky Harbor International Airport for two years, with two, one-year options to extend the term of the Lease.
Report
Summary
Modern Industries, Inc. (Modern) currently subleases space from Honeywell International, Inc. at Phoenix Sky Harbor International Airport where they are engaged in the aerospace and semiconductor industries. Modern has requested to lease Executive Hangar E13 to store the company's aircraft.
Contract Term
The term will be for two years, with two, one-year options to extend the Lease.
Financial Impact
Rent for the first year of the lease will be approximately $29,645 ($7.04 per square foot). Rent will be adjusted annually based on the Phoenix-Mesa-Scottsdale Consumer Price Index. Total anticipated revenue over the term, if all options are exercised, will be approximately $118,582.
Concurrence/Previous Council Action
- The Phoenix Aviation Advisory Board recommended this item for approval on March 18, 2021, by a vote of 9-0.
- The Transportation, Infrastructure and Innovation Subcommittee recommended this item for approval on April 7, 2021, by a vote of 4-0.
Location
Phoenix Sky Harbor International Airport - 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.