Title
Salt River Project Agricultural Improvement and Power District Executive Hangar Lease at Phoenix Sky Harbor International Airport
Description
This report requests that the Transportation, Infrastructure and Innovation Subcommittee recommend City Council approval to enter into an executive hangar lease with Salt River Project Agricultural Improvement and Power District (SRP) at Phoenix Sky Harbor International Airport (PHX).
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
SRP currently leases three hangars at PHX where it stores and maintains aircraft of various types. SRP has requested to lease Executive Hangar E12. The new lease will replace the current Executive Hangar Lease Agreement142597 for Executive Hangar E13, which will expire on April 30, 2021.
Contract Term
The term of the lease will be two years. The lease will contain two one-year options to extend the term.
Financial Impact
Rent for the first year of the lease will be approximately $29,670.64 ($7.04 per square foot), plus applicable taxes. Rent will be adjusted annually thereafter by the Phoenix-Mesa-Scottsdale Consumer Price Index. Total anticipated revenue over the term, if all options are exercised, will be approximately $118,673.
Concurrence/Previous Council Action
This item will be recommended for approval by the Phoenix Aviation Advisory Board on Nov. 19, 2020, by a vote of 8-0.
Location
2541 E. Air Lane
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.