Title
Acquisition of Real Property for Sky Harbor International Airport - 4108 E. Air Lane (Ordinance S-47320)
Description
Request to authorize the City Manager, or his designee, to perform all acts necessary to acquire fee title to and possession of certain real property located at 4108 E. Air Lane, Phoenix, Arizona, together with associated improvements, appurtenances, and other property rights (Property). Acquisition is to be by voluntary purchase from Adonai Properties, LLC at a price not to exceed the Property's appraised value of $775,000.
Further request authorization to enter into a temporary occupancy agreement to allow the occupant time to vacate the Property as may be necessary to and in furtherance of this acquisition. The purchase agreement may contain other terms and conditions deemed necessary or appropriate. Additionally request to authorize the City Controller to disburse, and the City Treasurer to accept, all funds related to this item.
Report
Summary
Adonai Properties, LLC (Adonai) initiated the voluntary acquisition process in September 2018. The Property consists of a 17,930 square foot parcel, which is improved with an office building and warehouse structure totaling 12,355 square feet. The property includes other improvements, and it is currently occupied. Fortis Networks, Inc., the tenant, is a minority owned design-build general contractor that intends to relocate its office closer to downtown. An independent appraisal, Phase I and Phase II Environmental Assessments, and testing have been conducted on the Property. The results of the environmental due diligence indicate the Property does not require environmental remediation, and the appraiser has concluded there are no adverse effects on market value.
This Property is located just north of Sky Harbor International Airport's fence line. As such, this transaction constitutes a strategic voluntary acquisition that is important to the Airport's future growth. Once the Property is acquired, the Aviation Department will demolish the improvements and prepare it for future airport development.
Financial Impact
The Property's purchase price is $775,000, plus the usual and customary closing costs. Funds are available in the Aviation Department's Capital Improvement Program.
Concurrence/Previous Council Action
- The Phoenix Aviation Advisory Board recommended this item for approval on Jan. 21, 2021, by a vote of 8-0.
- The Transportation, Infrastructure and Innovation Subcommittee recommended this item for approval on Feb. 3, 2021, by a vote of 4-0.
Public Outreach
Adonai is interested in selling the Property to the City. Staff has met with Adonai on several occasions to address questions.
Location
4108 E. Air Lane, identified by Maricopa County Assessor's parcel number 124-01-004.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation and Finance departments.