Title
Swift Aviation Services, Inc., Executive Hangar No. 24 and No. 29 Lease Agreements at Phoenix Sky Harbor International Airport (Ordinance S-43539)
Description
Request to authorize the City Manager, or his designee, to enter into five-year lease agreements with Swift Aviation Services, Inc., for Executive Hangar No. 24 and No. 29 at Phoenix Sky Harbor International Airport.
Report
Summary
Swift Aviation Services, Inc. (Swift), shall use the leased premises for aircraft storage in support of its fixed base operations at Phoenix Sky Harbor International Airport. Both hangars require mechanical and electrical repairs. Swift will conduct the repairs and receive rent credit adjustments not to exceed $39,000 for Executive Hangar No. 24 and $41,000 for Executive Hangar No. 29.
Contract Term
The term for each hangar will be five years. The City will have the right to terminate the lease on 90 days' notice if the property is needed for airport expansion purposes.
Financial Impact
Swift Aviation Services, Inc., will pay rent in the amount of $32,694 plus tax for each of the Executive Hangar leases for the first year. Rent will be adjusted annually based upon Consumer Price Index or 3 percent, whichever is greater.
Anticipated revenue to the City over the five-year term for both Executive Hangar agreements is estimated at $326,940.
Location
Phoenix Sky Harbor International Airport is located at 3400 E. Sky Harbor Blvd.
Department
Responsible Department
This item is submitted by Deputy City Manager Paul Blue and the Aviation Department.