Title
Peak Supply Chain Solutions Inc. Facility Lease at Phoenix Sky Harbor International Airport (Ordinance S-47019)
Description
Request to authorize the City Manager, or his designee, to enter into a Facility Lease Agreement for up to 11,520 square feet of cargo bay space with Peak Supply Chain Solutions, Inc. (Peak) at Phoenix Sky Harbor International Airport for three years with one, two-year renewal option. Estimated revenue to the City over the term will be approximately $705,020.
Report
Summary
Peak is a contractor for United Parcel Services Inc. (UPS), contracted to process UPS’s United States Postal Service mail contract. Peak currently occupies 11,520 square feet of cargo bay space within West Air Cargo Building A, Bays 21-26 under a Temporary License Agreement. Peak is seeking to enter into a Facility Lease Agreement for this space.
Contract Term
The term will be for three years with one, two-year renewal option to be exercised at the sole discretion of the Aviation Director.
Financial Impact
Rent for the first year of the Facility Lease will be up to $141,004 ($12.24 per square foot). Rent will be adjusted annually based on the Airport’s Rates & Charges program. Total anticipated revenue over the term, if all options are exercised, will be approximately $705,020.
Concurrence/Previous Council Action
- This item was recommended for approval by the Phoenix Aviation Advisory Board on Sept. 17, 2020, by a vote of 7-0.
- This item was recommended for approval by the Transportation, Infrastructure and Innovation Subcommittee on Oct. 7, 2020, by a vote of 3-0.
Location
Phoenix Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.