Title
Avis Budget Car Rental, LLC Lease at Phoenix Sky Harbor Airport (Ordinance S-46101)
Description
Request to authorize the City Manager, or his designee, to enter into a lease agreement with Avis Budget Car Rental, LLC (ABCR) at Phoenix Sky Harbor International Airport (PHX) for overflow parking of their rental vehicles. The term will be for one year with two, one-year renewal options to be exercised at the sole discretion of the Director of Aviation Services. The total anticipated revenue over the term, if all options are exercised, will be approximately $411,642.
Report
Summary
ABCR currently occupies a 3-acre area within the Tonto parking lot located at 610 S. 24th St. under a Temporary License Agreement with the City. The License Agreement will expire on Oct. 31, 2019, and ABCR has requested to continue leasing this space. The space is used for overflow parking of their rental vehicles. This lease will enable ABCR to meet customer demand, especially during the approaching high season.
Contract Term
The term will be for one year with two, one-year renewal options to be exercised at the sole discretion of the Director of Aviation Services.
Financial Impact
Annual rent will be approximately $137,214 ($1.05 per square foot). The total anticipated revenue over the term, if all options are exercised, will be approximately $411,642.
Concurrence/Previous Council Action
This item was recommended for approval by the Phoenix Aviation Advisory Board on Sept. 19, 2019 by a vote of 9-0.
Location
East Tonto Lot, 610 S. 24th St.
Council District: 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.