Title
Authorization to Enter Into Ground Lease with Western Maricopa Education Center at Phoenix Deer Valley Airport (Ordinance S-43584)
Description
Request to authorize the City Manager, or his designee, to enter into a ground lease with Western Maricopa Education Center (West MEC) at Phoenix Deer Valley Airport for a surface parking area.
Report
Summary
West MEC currently owns and operates a campus adjacent to Phoenix Deer Valley Airport. West MEC is expanding its school campus and requesting to enter into a ground lease for adjacent property to develop additional parking for campus activity, with an initial estimated investment of $250,000 to $300,000. The ground lease will be for 85,200 square feet or 1.96 acres of land. The rental rate will be $0.54 per square foot with an annual Consumer Price Index (CPI) increase or 3 percent, whichever is greater.
Contract Term
The contract term is for 10 years with five, one-year options to extend at the sole discretion of the Aviation Director. The City may terminate the lease if the property is needed for airport expansion purposes.
Financial Impact
Estimated revenue for the first year of the contract is $46,008. Rent will be adjusted annually by CPI or 3 percent, whichever is greater.
Location
Phoenix Deer Valley Airport is located at 702 W. Deer Valley Road.
Department
Responsible Department
This item is submitted by Deputy City Manager Paul Blue and the Aviation Department.