Title
Voluntary Acquisition of Improved Real Property Located at 4050 and 4102 E. Air Lane for Phoenix Sky Harbor International Airport (Ordinance S-49938)
Description
Request to authorize the City Manager, or his designee, to perform all acts necessary to acquire real property located at 4050 and 4102 E. Air Lane in fee simple title, together with associated improvements and appurtenances. Acquisition is to be by voluntary purchase from OTH Holdings, LLC, at a price not to exceed appraised value plus usual and customary closing costs. Further request to authorize the execution of a lease to allow occupants time to relocate, as may be necessary to and in furtherance of this acquisition. Additionally request to authorize the City Controller to disburse, and the City Treasurer to accept, all funds related to this item.
Report
Summary
OTH Holdings, LLC, initiated a voluntary acquisition of the property consisting of 26,891 square feet of land, improved with two office buildings and warehouse structures totaling 16,059 square feet and associated land improvements. The property is strategically located adjacent to Phoenix Sky Harbor International Airport's north airfield fence line and operations. Currently, the property is occupied by Almond Brothers, LLC (Almond Brothers).
To allow occupants time to relocate, the City will lease 4102 E. Air Lane to Almond Brothers for a term of 18 months, plus one 18-month option to extend, that may be exercised at the sole discretion of the Director of Aviation, at a rental rate based on market rent.
Once the property is acquired and as the buildings become vacant, the Aviation Department intends to demolish the structures in favor of improvements to support aeronautical development. If an agreement to purchase cannot be reached at this time, the property may be acquired at a later date using other available means.
Financial Impact
The purchase price will not exceed appraised value, plus the usual and customary closing costs. Funds are available in the Aviation Department's Capital Improvement Program.
Location
4050 and 4102 E. Air Lane, identified by Maricopa County Assessor parcel numbers 124-01-006 and 124-01-005.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation and Finance departments.