Title
Sibran Properties, LLC Lease Extension at Phoenix Deer Valley Airport
Description
This report requests that the Transportation, Infrastructure and Innovation Subcommittee recommend to the City Council approval to extend the Ground Lease with Sibran Properties, LLC (Sibran) at Phoenix Deer Valley Airport (DVT) for seven years.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
Sibran entered into Ground Lease 122664 on Nov. 1, 2008 for 17,700 square feet at DVT where Sibran operates a self-service aviation gas (AvGas) fueling station. Sibran has requested to extend the lease for seven years. The extension will ensure DVT AvGas users continue to have more than one option for fueling their planes, and the rate adjustment will promote the long-term viability of the self-fueling option at DVT.
Contract Term
The term will be seven years with no renewal options.
Financial Impact
Rent for the first year of the lease will be approximately $9,558 ($0.54 per square foot) plus applicable taxes. Rent will be adjusted annually thereafter by the Phoenix-Mesa-Scottsdale Consumer Price Index. Total anticipated revenue over the term will be approximately $66,906.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board recommended this item for approval on Nov. 19, 2020, by a vote of 8-0.
Location
Phoenix Deer Valley Airport - 702 W. Deer Valley Road
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.