Title
Salt River Project Agricultural Improvement and Power District Corporate Hangar Lease Amendment (Ordinance S-46934)
Description
Request to authorize the City Manager, or his designee, to amend Corporate Hangar Lease Agreement 148473 (Lease) with Salt River Project Agricultural Improvement and Power District (SRP) by extending the term two years and adding three one-year options to extend the term that may be exercised at the sole discretion of the Aviation Director.
Report
Summary
SRP occupies a corporate hangar located at 2601 E. Air Lane at Phoenix Sky Harbor International Airport. SRP uses the hangar to store and conduct light maintenance on its aircraft. The Lease will expire on Sept. 30, 2023. SRP wants to extend the term of the Lease two years (to Sept. 30, 2025) and add three one-year options to extend the term that may be exercised at the sole discretion of the Aviation Director.
Contract Term
The term will be extended two years and the Lease will be amended to add three one-year options to extend the term that may be exercised at the sole discretion of the Aviation Director.
Financial Impact
Rent for the first year of the extended term will be approximately $129,197 ($8.92 per square foot), plus applicable tax. Rent will be adjusted annually thereafter based on the Consumer Price Index. Total anticipated revenue over the term, if all options are exercised, will be approximately $645,986.
Location
2601 E. Air Lane
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.