Title
Fairmount Corporation Real Estate and Investments Ground Lease (Ordinance S-49072)
Description
Request to authorize the City Manager, or his designee, to enter into a ground lease with Fairmount Corp. Real Estate and Investments for Aviation Department owned parcel at 1520 East Apache St. Further request to authorize the City Treasurer to accept all funds related to the ground lease.
Report
Summary
Fairmount Corp. Real Estate and Investments (Fairmount) owns land west of Phoenix Sky Harbor International Airport that envelops the Aviation Department owned parcel at 1520 East Apache St. on three sides. Fairmount wishes to lease approximately 6,893 square feet of land on this parcel to increase available automobile parking for their property.
Contract Term
The term of the lease will be three years from the date of execution. Provisions of the contract will include two one-year options to extend the term at the sole discretion of the Aviation Director.
Financial Impact
Annual rent for the first year of the term will be $7,238. Rent will be annually adjusted according to the Phoenix-Mesa-Scottsdale Consumer Price Index. Total anticipated revenue, if all options are exercised, is approximately $36,190.
Concurrence/Previous Council Action
This item was approved by the Phoenix Aviation Advisory Board on September 15, 2022 by a vote of 6-0.
Location
1520 East Apache St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.