Title
Worldwide Flight Services, Inc. Ground Lease at Phoenix Sky Harbor International Airport (Ordinance S-47106)
Description
Request to authorize the City Manager, or his designee, to enter into a ground lease with Worldwide Flight Services, Inc. (WFS) at Phoenix Sky Harbor International Airport (PHX) for one year with two, one-year renewal options.
Report
Summary
WFS currently leases cargo bays at the West Air Cargo complex at PHX where they process cargo for Amazon, Inc. WFS has requested to lease approximately one acre in the East Tonto Lot to park trailers used to transport cargo to Amazon's distribution warehouses in Phoenix and surrounding communities.
Contract Term
The term will be one year with two, one-year renewal options to be exercised at the sole discretion of the Aviation Director.
Financial Impact
Rent for the first year of the lease will be approximately $45,738-per-year ($1.05-per-square-foot) plus applicable taxes. Rent will be adjusted annually thereafter by the Phoenix-Mesa-Scottsdale Consumer Price Index. Total anticipated revenue over the term of the lease will be approximately $137,214.
Cocurrence/Previous Council Action
This item was recommended for approval by the Phoenix Aviation Advisory Board on Oct. 15, 2020, by a vote of 6-0 and the Transportation, Infrastructure and Innovation Subcommittee on Nov. 4, 2020, by a vote of 4-0.
Location
Phoenix Sky Harbor International Airport, East Tonto Lot - 610 S. 24th St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.