Title
Civil Air Patrol Lease Extension at Phoenix Deer Valley Airport (Ordinance S-52285) - District 1
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Corporate Hangar Lease 136822 with Civil Air Patrol (CAP) to extend the lease term for 10 years and add one five-year extension option and incorporate approximately 10,400 square feet of additional premises at Phoenix Deer Valley Airport (DVT).
Report
Summary
The Arizona Wing of CAP leases a corporate hangar at DVT of approximately 6,000 square feet that includes hangar, classroom, and office space. CAP is a civilian auxiliary to the United States Air Force that provides aviation-related education and flight training to local youth and adults to assist federal and local state authorities in the event of local and national emergencies. CAP uses the hangar facility for its non-commercial activities to support aerial search and rescue missions, humanitarian aid services, and to operate a cadet program that introduces cadets to aviation. CAP has been a tenant at DVT since 1989 and leases the hangar facility for one dollar per year, consistent with FAA regulations.
Corporate Hangar Lease 136822 was amended in January 2021 to extend the term for an additional five years, through December 31, 2025, with two one-year renewal options. The amendment included a provision for an additional five-year extension if CAP made a $1 million minimum capital investment to expand the hangar facility.
CAP recently received a $4.9 million grant from the State of Arizona for hangar facilities improvements. Given the significance of the proposed capital investment, CAP requested the Aviation Department exercise both remaining one-year renewal options and extend the lease term for an additional 10 years, with one five-year renewal option, to complete a remodel to expand the hangar facility by approximately 16,400 square feet. The expansion will accommodate an additional aircraft and increase the size of the classroom and office space.
Contract Term
If approved, the lease term will be extended for 10 years, effective January 1, 2028, with one five-year renewal option at the sole discretion of the Aviation Director, contingent upon CAP investing a minimum of $4.9 million in hangar expansion and improvements.
Financial Impact
Rent for the lease will remain at one dollar per year.
Concurrence/Previous Council Action
City Council previously approved:
Corporate Hangar Lease Agreement 136822 (Ordinance S-39339) on November 7, 2012;
Extension of Corporate Hangar Lease Agreement 136822 (Ordinance S-46174) on November 20, 2019;
Extension of Corporate Hangar Lease Agreement 136822 (Ordinance S-49625) on April 19, 2023;
The Phoenix Aviation Advisory Board Business and Development Subcommittee recommended approval of this item on August 7, 2025, by a vote of 3-0; and
The Phoenix Aviation Advisory Board recommended approval of this item on August 21, 2025, by a vote of 9-0.
Location
Phoenix Deer Valley Airport: 702 W. Deer Valley Road
Council District: 1
Department
Responsible Department
This item is submitted by Interim Deputy City Manager Amber Williamson and the Aviation Department.