Title
Amend Terminal Facility License Agreement 162794 with AGI Ground Inc. (Ordinance S-52471) - District 8
Description
Request authorization for the City Manager, or his designee, to amend Facility License Agreement 162794 (License) with AGI Ground Inc. (AGI) to add approximately 414 square feet of exclusive space in Terminal 4 at Phoenix Sky Harbor International Airport.
Report
Summary
AGI currently leases approximately 638 square feet of exclusive-use space in Terminal 3 to support its operations in Terminal 3. To further support its expanded operations in Terminal 4, AGI is requesting to lease an additional approximately 414 square feet of exclusive-use space in Terminal 4, to be used primarily for office space. This amendment would bring AGI's total exclusive space to approximately 1,052 square feet.
Further request authorization for the Aviation Director to make future additions, subtractions, and changes to AGI's exclusive space, not to exceed a total of 3,000 square feet, as the Aviation Director deems necessary or appropriate to attain the highest and best use of Aviation Department resources, as well as to accommodate future AGI business needs for the duration of the License.
Contract Term
The term of the License remains on a month-to-month basis.
Financial Impact
AGI will pay the current terminal rental rate of $197.88 per square foot per year for the additional 414 square feet, resulting in an estimated monthly revenue of $6,826.86 to the City. The terminal rental rate will be adjusted annually on July 1 in accordance with the Rates and Charges provision of Article IX of Chapter 4 of the Phoenix City Code.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Amber Williamson and the Aviation Department.