Title
Amendment to Lease 140605-4 with RSW Group, LLC at Deer Valley Airport (Ordinance S-46073)
Description
Request to authorize the City Manager, or his designee, to amend Lease 140605-4 with RSW Group, LLC (RSW) at Phoenix Deer Valley Airport (DVT) to extend the lease term for five years. Rent will be approximately $130,127 per year. Total rent over the five-year term of the lease will be approximately $650,635.
Report
Summary
RSW has leased an executive hangar and approximately 1.23 acres of ramp space at DVT since 2014 where the company conducts activities related to the maintenance, storage, flight training, and sale of custom military-style civilian aircraft. The current lease will expire Oct. 31, 2019, and RSW has requested to extend the lease for an additional five years.
Contract Term
The term will be five years with no additional options to extend.
Financial Impact
Rent will be approximately $130,127 per year and will be adjusted on an annual basis based on the Phoenix-Mesa-Scottsdale Consumer Price Index (CPI) or 3 percent, whichever is greater. Rent over the five-year term of the lease will be approximately $650,635.
Concurrence/Previous Council Action
This item was recommended for approval by the Transportation, Infrastructure and Innovation Subcommittee on Sept. 4, 2019 by a vote of 4-0.
Location
Phoenix Deer Valley Airport, 142 E. Deer Valley Road
Council District: 1
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.