Title
Broad, LLC, Corporate Hangar Lease Agreement (Ordinance S-43607)
Description
Request to authorize the City Manager, or his designee, to enter into a corporate hangar lease (Lease) with Broad, LLC, for approximately 11,550 square feet of hangar space located at 2531 E. Air Lane at Phoenix Sky Harbor International Airport (Hangar). The Lease will include authorization for Broad, LLC, to make additions, subtractions, and changes to the Hangar, as deemed appropriate in the sole discretion of the Aviation Director.
Report
Summary
Broad, LLC, shall use the Hangar for aircraft storage, and will pay the rental rate of $8.50 per square foot per year for the first year, plus applicable taxes, calculated and paid on a monthly basis. The Lease may contain other terms and conditions deemed necessary or appropriate by the Aviation Director or his designee. Upon execution of the Lease, the City will terminate Lease No. 140364 for Executive Hangar 11 at Phoenix Sky Harbor International Airport.
Contract Term
The term will be five years with five, one-year options to renew that may be exercised at the sole discretion of the Aviation Director. The City may terminate the Lease if the Hangar is needed for airport expansion purposes.
Financial Impact
The City will receive rent in the amount of $43,628 per year ($3,635.67 per month), adjusted annually according to the Consumer Price Index (CPI) for the duration of the Lease. The estimated revenue for the full 10-year term of the Lease is $436,280, plus CPI adjustments.
Location
The Hangar is located at 2531 E. Air Lane at Phoenix Sky Harbor International Airport.
Department
Responsible Department
This item is submitted by Deputy City Manager Paul Blue and the Aviation Department.