Title
Embry-Riddle Facility Lease (Ordinance S-44798)
Description
Request to authorize the City Manager, or his designee, to enter into a facility lease agreement (Lease) with Embry-Riddle Aeronautical University, Inc. (Embry-Riddle) for an office building located at 2625 E. Air Lane at Phoenix Sky Harbor International Airport. The estimated aggregate revenue to the City under the Lease is $296,945, not including Consumer Price Index (CPI) adjustments. The Lease will contain other terms and conditions deemed necessary or appropriate by the City Manager or his designee.
Report
Summary
Embry-Riddle currently leases a 4,075-square-foot building located at 2625 E. Air Lane for the purposes of operating classrooms and offices under Facility Lease 131472, which is on a month-to-month basis. Embry-Riddle has requested a new lease for the same premises to continue its operations.
Contract Term
The term of the Lease will be two years, and will include five one-year renewal options that may exercised at the sole discretion of the Aviation Director.
Financial Impact
Rent is $10.41 per square foot per year. Annual rent will be approximately $42,420 and will be adjusted annually according to the CPI. Estimated revenue to the City, if all options are exercised, is $296,945, not including CPI adjustments.
Concurrence/Previous Council Action
This item was recommended for approval by the Downtown, Aviation, Economy and Innovation Subcommittee on June 6, 2018 by a vote of 4-0.
Location
2625 E. Air Lane
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.