Title
Amend Ground Lease with Cutter Aviation Deer Valley, Inc. at Phoenix Deer Valley Airport (Ordinance S-52284) - District 1
Description
Request to authorize the City Manager, or his designee, to amend Ground Lease 148261 with Cutter Aviation Deer Valley, Inc. (Cutter) to add 4,193 square feet to the leased premises at Phoenix Deer Valley Airport (DVT) to enable the construction of an additional executive aircraft storage hangar facility.
Report
Summary
Cutter currently leases 1,131,854 square feet of land (approximately 26 acres) at DVT to operate a Fixed Base Operator business, which includes covered tie-down units and executive hangars in addition to providing aircraft fueling, aircraft maintenance, flight training and aviation supply sales.
Cutter seeks to expand their leased premises by 4,193 square feet to accommodate construction of an additional 55,000 square foot executive aircraft storage hangar facility. The hangar construction will require removal of two rows of covered tie-down spaces on Cutter's leased premises.
Contract Term
The term of Ground Lease 148261 commenced on July 1, 2018, and will expire on June 30, 2048. This amendment does not change the lease term.
Financial Impact
Cutter currently pays approximately $601,232 per year in ground rent. This amendment will increase annual rent by approximately $2,851 per year or approximately $65,578 over the remaining 23 years of the lease.
Concurrence/Previous Council Action
City Council previously approved:
Ground Lease Agreement 148261 (Ordinance S-44150) on December 13, 2017;
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.