Title
Executive Hangar Lease with Papa Sierra, LLC at Phoenix Sky Harbor International Airport (Ordinance S-46176)
Description
Request to authorize the City Manager, or his designee, to enter into an executive hangar lease (Lease) with Papa Sierra, LLC (Papa Sierra) at Phoenix Sky Harbor International Airport (PHX) for a term of approximately three years.
Report
Summary
Papa Sierra currently leases Executive Hangar No. 28 under Executive Hangar Lease Agreement No. 139057, which will expire on Dec. 31, 2022. Papa Sierra has requested to enter into the Lease for the purpose of storage and maintenance of approved aircraft. The hangar will be used for no other purpose without the prior consent of the Aviation Director.
Contract Term
The term will be approximately three years and expire on Dec. 31, 2022, which will be conterminous with Executive Hangar Lease Agreement No. 139057.
Financial Impact
Rent will be approximately $35,531 ($6.52 per square foot) and will be adjusted annually basis based on the Phoenix-Mesa-Scottsdale Consumer Price Index or three percent, whichever is greater. The total anticipated revenue over the term of the Lease will be approximately $106,593.
Concurrence/Previous Council Action
This item was recommended for approval by the Phoenix Aviation Advisory Board on Oct. 17, 2019 by a vote of 7-0.
Location
Phoenix Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.
Council District(s): 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.