Title
Phoenix Rising FC, LLC Ground Lease Amendment 1 at Phoenix Sky Harbor International Airport (Ordinance S-49366)
Description
Request to authorize the City Manager, or his designee, to amend the ground lease with Phoenix Rising FC, LLC to authorize a three percent limit on annual rent increases.
Report
Summary
The original lease agreement currently identifies an annual rent increase equal to the Consumer Price Index (CPI). Negotiated in the Letter of Intent for this lease agreement was an escalation of CPI not to exceed three percent. The three percent rent cap was omitted in the original Council action that authorized the lease agreement.
Contract Term
This amendment does not provide any change to the lease term.
Financial Impact
Financial impact is unknown as the Consumer Price Index may remain below three percent for the duration of the lease term.
Concurrence/Previous Council Action
City Council approved the Phoenix Rising Ground Lease (Ordinance S-49193) on Nov. 16, 2022.
Location
Phoenix Sky Harbor International Airport, 3801 East Washington St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Ginger Spencer and the Aviation and Community and Economic Development departments.