Title
Amendment Lease with Swissport Fueling, Inc. at Phoenix Sky Harbor Airport (Ordinance S-46098)
Description
Request to authorize the City Manager, or his designee, to amend Lease 132521 with Swissport Fueling, Inc. (Swissport) at Phoenix Sky Harbor International Airport (PHX) by extending the lease term five years with no options to renew and add an additional 17,335 square feet to their leasehold. The total anticipated revenue over the term of the lease will be approximately $169,938.
Report
Summary
Swissport has leased 20,520 square feet of ramp space on the East Cargo Ramp since 2012. The current lease will expire on Dec. 31, 2019. Swissport has requested to continue leasing space to provide parking for their fleet of ground service equipment, fueling equipment, and office trailer. In addition, this amendment will increase their leased space by 17,335 square feet for a total leasehold area of 37,855 square feet.
Contract Term
The term will be for five years with no options to renew. This Agreement will be coterminous with Swissport’s Terminal 3 Waste Triturator Agreement 135697.
Financial Impact
Annual rent will be $33,987 ($.90 per square foot) and will be adjusted on an annual basis based on the Phoenix-Mesa-Scottsdale Consumer Price Index (CPI) or 3 percent, whichever is greater. The total anticipated revenue over the term of the lease will be approximately $169,938.
Concurrence/Previous Council Action
This item was recommended for approval by the Phoenix Aviation Advisory Board on Sept. 19, 2019 by a vote of 9-0.
Location
Phoenix Sky Harbor Airport, 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.