Title
Transportation Security Administration Lease Agreement (Ordinance S-47405)
Description
Request to authorize the City Manager, or his designee, to enter into a new Transportation Security Administration (TSA) Lease Agreement for occupied space at Phoenix Sky Harbor International Airport (PHX) for a period of five years with no renewal options.
Report
Summary
The TSA is an agency of the United States (U.S.) Department of Homeland Security, which was created through the Aviation and Transportation Security Act in November 2001. The agency has authority over the security of the traveling public in the U.S. and provides essential security screening at PHX for passenger safety. They have requested to execute a new lease agreement combining space they currently occupy at PHX in Terminal 3 (T3), Terminal 4 (T4), and West Air Cargo (WAC) for approximately 19,340 square feet. Throughout the term of the Agreement they will make space improvements, on an as needed basis, for operational growth or office reconfiguration at their expense.
Contract Term
The term will be five years with no renewal options, beginning Feb. 1, 2021 and expiring on Jan. 31, 2026.
Financial Impact
Rent for the first year of this lease will be approximately $2.1 million. Rent will be adjusted annually thereafter to approximately $2.4 million in year five. Total anticipated revenue over the term will be approximately $11.4 million.
Concurrence/Previous Council Action
- The Phoenix Aviation Advisory Board recommended this item for approval on Feb. 18, 2021, by a vote of 6-0.
- The Transportation, Infrastructure and Innovation Subcommittee recommended this item for approval on March 3, 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.