Title
New Cargo Facility Lease with Alvest Equipment Services (USA) LLC at Phoenix Sky Harbor International Airport (Ordinance S-52540) - District 8
Description
Request to authorize the City Manager, or his designee, to enter into a new cargo facility lease agreement with Alvest Equipment Services (USA) LLC (AES) for approximately 1,920 square feet of space in West Cargo Complex Building A at Phoenix Sky Harbor International Airport (PHX).
Report
Summary
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 the West Air Cargo complex will expand AES's capacity for operations and its capability to support additional airline clients at PHX.
Contract Term
The lease term will be three years with three one-year options to extend the term that may be exercised 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 provisions under Chapter 4, Article IX of the Phoenix City Code. Annual rent for the first year will be approximately $38,016, and total revenue expected during the term of the lease will be approximately $228,096, if all options are exercised.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board, Business and Development Subcommittee, approved this item on November 6, 2025, by a vote of 3-0.
The Phoenix Aviation Advisory Board approved this item on November 20, 2025, by a vote of 6-0.
The Transportation, Infrastructure, and Planning Subcommittee approved this item on December 17, 2025, by a vote of 4-0.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road, Phoenix, AZ
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Frank McCune and the Aviation Department.