Title
Ground Lease with Derek Engineering, Inc. (Ordinance S-49853)
Description
Request to authorize the City Manager, or his designee, to execute a Ground Lease with Derek Engineering, Inc. for 33,994 square feet (.714 acres) of Aviation-owned land across four separate parcels located at 1121, 1125, 1133, and 1135 E. Watkins St. at Phoenix Sky Harbor International Airport, Phoenix, Arizona.
Report
Summary
Derek Engineering, Inc., is requesting to enter into a Ground Lease on four separate parcels located at 1121, 1125, 1133, and 1135 E. Watkins St. (Maricopa County Assessor Parcel Numbers 115-47-034C, 115-47-034D, 115-47-035A, and 115-47-036B) for the sole purpose of temporarily parking employee vehicles while developing the un-addressed 18 acres adjacent to the west for Prologis. Derek Engineering, Inc. had a temporary six-month license for parking which expired on April 30, 2023 and is currently operating month to month until a new lease is approved.
Contract Term
The term will be for one year, with no options to extend.
Financial Impact
Rent will be approximately $1,982.98 per month ($.70 per square foot). Total anticipated rent from this Ground Lease over the term will be approximately $23,795.80.
Concurrence/Previous Council Action
The Business Development Subcommittee recommended approval of the item on May 4, 2023, by a vote of 3-0.
The Phoenix Aviation Advisory Board recommend this item for approval on May 18, 2023, by a vote of 7-0.
Location
Phoenix Sky Harbor International Airport - 1121, 1125, 1133, and 1135 E. Watkins St., Phoenix Ariz.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.