Title
Facility Lease Amendment with Galaxy International, Inc. at Phoenix Goodyear Airport (Ordinance S-45614)
Description
Request to authorize the City Manager, or his designee, to amend the Facility Lease Agreement 134004 with Galaxy International, Inc. (Galaxy) at Phoenix Goodyear Airport (GYR) to extend the lease term five years, with two, one-year options to extend. The total anticipated revenue over the term, if all options are exercised, is approximately $401,177.
Report
Summary
Galaxy has leased a portion of Hangar 18 at GYR since July 2012 and is requesting an amendment to their Facility Lease Agreement to extend the term by five years with two, one-year renewal options.
Galaxy uses approximately 13,900 square feet of office and hangar space to conduct commercial activities including manufacturing and repair services of turbine engine controls and accessories, aircraft teardown, painting, and part sales.
Contract Term
The term will be five years with two, one-year renewal options to be exercised at the sole discretion of the Aviation Director.
Financial Impact
Rent will be approximately $57,311 per year. Rent shall be adjusted annually based on the Consumer Price Index (CPI) for Phoenix-Mesa-Scottsdale. The total anticipated revenue over the term, if all options are exercised, is approximately $401,177.
Concurrence/Previous Council Action
This item was recommended for approval at the Aviation and Transportation Subcommittee meeting on April 23, 2019, by a vote of 2-0.
Location
Phoenix Goodyear Airport, 1658 S. Litchfield Road, Goodyear, Ariz.
Council District: Out of City
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.