Title
New Cargo Facility Lease Alvest Equipment Services (USA) LLC at Phoenix Sky Harbor International Airport - District 8
Description
This report requests the Transportation, Infrastructure, and Planning Subcommittee to recommend City Council approval to enter into a new cargo facility lease agreement with Alvest Equipment Services (USA) LLC for approximately 1,920 square feet of space in West Cargo Complex Building A at Phoenix Sky Harbor International Airport (PHX).
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
Alvest Equipment Services (USA) LLC (AES) currently provides ground support equipment and maintenance services to Alaska Airlines. Recently AES began providing ground support equipment and maintenance services for Unifi Aviation, LLC, a commercial ground handling provider supporting Frontier Airlines. The proposed cargo facility lease of Bay 16 of Building A in West Air Cargo complex will expand AES's operational capacity and capability to support the additional airline clients at PHX.
Contract Term
The lease term will be for three years with three one-year options to extend the term at the sole discretion of the Aviation Director.
Financial Impact
AES will pay the rental rate per square foot per year according to the Airport Rates and Charges program authorized under Phoenix City Code section 4-173(B). The rental rate will be adjusted annually according to the Rates and Charges provision of Article IX, Chapter 4 of the Phoenix City Code. Annual rent for the first year is anticipated to be approximately $38,016, and total revenue expected during the term of the lease is approximately $228,096 if all extension options are exercised.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board approved this item on November 20, 2025, by a vote of 6-0.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road, Phoenix, Arizona
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Amber Williamson and the Aviation Department.