Title
Amendment to Lease 134887 with Federal Express at Phoenix Sky Harbor Airport (Ordinance S-45977)
Description
Request to authorize the City Manager, or his designee, to amend Lease 134887 with Federal Express Corporation (FedEx) at Phoenix Sky Harbor International Airport (PHX) by extending the lease term for three years with two one-year renewal options, and by adding 20,000 square feet of parking space to its leasehold. Annual rent will be $82,560 ($1.03 per square foot).
Report
Summary
FedEx has leased 60,000 square feet of space within the parking lot located at 610 S. 24th St. since 2012. The current lease will expire on Oct. 31, 2019, and FedEx has requested to continue leasing this space to park large tractor trailers that support its cargo operations at the South Cargo Facility. This amendment will extend the term of the Lease, and add 20,000 square feet of parking space increasing the total leased space to 80,000 square feet.
Contract Term
The term will be three years with two one-year renewal options to be exercised at the sole discretion of the Aviation Director.
Financial Impact
Annual rent will be $82,560 ($1.03 per square foot). The total anticipated revenue over the term, if all options are exercised, will be approximately $412,800 plus annual Phoenix-Mesa-Scottsdale Consumer Price Index (CPI) adjustments.
Concurrence/Previous Council Action
This item was recommended for approval by the Phoenix Aviation Advisory Board on Aug. 15, 2019, by a vote of 6-0.
Location
610 S. 24th St. (East Tonto Lot)
Council District: 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.