Title
Authorization to Enter Into Ground Lease with Harris Corporation (Ordinance S-43609)
Description
Request to authorize the City Manager, or his designee, to enter into a ground lease with Harris Corporation for two Federal Aviation Administration (FAA) navigational aid stations at Phoenix Sky Harbor International Airport. The navigational aid stations are part of the FAA's Surveillance and Broadcast Services (SBS) Program. The ground lease will require Harris Corporation to operate and maintain the navigational aid stations. The ground lease may contain other terms and conditions deemed necessary or appropriate by the Aviation Director.
Report
Summary
The FAA has two navigational aid stations, which have been in operation since March 1, 2012. The original land lease with Exelis, Inc., had a five-year term that expired on Feb. 28, 2017. Prior to the expiration date, Exelis, Inc., was acquired by Harris Corporation. The ground lease with Harris Corporation would maintain the operation and maintenance the FAA has for the two navigational aid stations for its SBS Program. The location of the first site is adjacent to Fire Station 29 at 3949 E. Air Lane and is comprised of 685 square feet. The second site is adjacent to the South Air Cargo Building at 3002 E. Old Tower Road and is comprised of 127 square feet. No navigational aid station improvements are required.
Contract Term
The term is five years with five, one-year options to extend the term at the sole discretion of the Aviation Director.
Financial Impact
Estimated revenue for the first year is $2,800, which includes base rent and utility reimbursement.
Location
Phoenix Sky Harbor International Airport is located at 3400 E. Sky Harbor Blvd.
Department
Responsible Department
This item is submitted by Deputy City Manager Paul Blue and the Aviation Department.