Title
Sycamore Aviation Recycling, Inc., Lease Amendment 1 (Ordinance S-44385)
Description
Request to authorize the City Manager, or his designee, to enter into an amendment to Unsubordinated Ground Lease 144892 (Lease) with Sycamore Aviation Recycling, Inc., (Sycamore) to extend the term for one year and add an option to extend the term for one year, which option may be exercised at the sole discretion of the Aviation Director. The amendment may contain other terms and conditions deemed necessary or appropriate by the Aviation Director. All other terms and conditions of the Lease not in conflict with the amendment shall remain unchanged and in full force and effect. The Aviation Department will receive $60,000 over the two-year term, if the option to extend is exercised.
Report
Summary
Sycamore currently leases approximately 22,734 square feet of land at Phoenix Goodyear Airport. Sycamore is a full aircraft decommissioning and recycling service company. Sycamore's services include part removal, aircraft re-certification, and inventory management. Sycamore asked the City to amend the Lease to extend the term by one year and add a one-year option to extend the term.
Contract Term
The term of the Lease will be extended for one year and will include an option to extend the term for one year, which option may be exercised at the sole discretion of the Aviation Director.
Financial Impact
Sycamore will pay annual rent in the amount of $30,000, plus taxes, and the monthly rent will be $2,500, plus taxes. The Aviation Department will receive $60,000 over the two-year term, if the option to extend is exercised.
Location
Phoenix Goodyear Airport, 1658 S. Litchfield Road, Goodyear, Ariz.
Council District: Out of City
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.