Title
Critical Air Response Enterprises, LLC dba AirCARE1 Ground Lease at Phoenix Deer Valley Airport (Ordinance S-46213)
Description
Request to authorize the City Manager, or his designee, to enter into a ground lease with Critical Response Enterprises, LLC, dba AirCARE1 (AirCARE1), to construct, occupy, and maintain a hangar facility at Phoenix Deer Valley Airport (DVT) for 30 years. The anticipated revenue from this will will be approximately $1.4 million.
Report
Summary
AirCARE1 has operated an air ambulance service since 2009. The company has requested to construct, occupy, and maintain aircraft storage hangars for the company’s air ambulance service on approximately 87,120 square feet of undeveloped land at DVT.
Contract Term
The term will be for 30 years and includes a construction period of up to 18 months before rent commences.
Financial Impact
Annual rent will be approximately $47,045-per-year, adjusted annually based on Phoenix-Mesa-Scottsdale Consumer Price Index, or 3 percent, whichever is greater. Total anticipated revenue over the term of the lease will be approximately $1.4 million.
Concurrence/Previous Council Action
This item was recommended for approval by the Phoenix Aviation Advisory Board on Nov. 21, 2019, by a vote of 7-0.
Location
Phoenix Deer Valley Airport, 702 W. Deer Valley Road
Council District: 1
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.