Title
Worldwide Flight Service, Inc. New Facility Lease Agreement at Phoenix Sky Harbor International Airport (Ordinance S-51894) - District 8
Description
Request to authorize the City Manager, or his designee, to enter into a new facility lease with Worldwide Flight Service, Inc. (WFS) at Phoenix Sky Harbor International Airport (PHX) for three years with four one-year options to extend.
Report
Summary
WFS currently operates at the West Air Cargo facilities at PHX, where they provide cargo handling services for Amazon operations under Commerical Use Permit 406-17 and a Cargo Facility Lease Agreement 152567. WFS requests to enter into a new facility lease for approximately 38,094 square feet of space in West Air Cargo facilities to continue to support its ongoing cargo handling services for Amazon.
Contract Term
The term of the agreement will be three years, which will commence retroactively on February 14, 2025, and will expire on February 13, 2028, with four one-year options to extend at the sole discretion of the Aviation Director.
Financial Impact
Rent for the first year of the lease will be approximately $656,033 at the rate per square foot for space in West Air Cargo and West Air Cargo GSE facilities as set by the PHX Rates and Charges provision of the Phoenix City Code. The cargo facilities rental rate will be adjusted annually in accordance with Rates and Charges provision of Article IX of Chapter 4 of the Phoenix City Code.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board, Business and Development Subcommittee recommended approval to the Phoenix Aviation Advisory Board on April 3, 2025, by a vote of 4-0.
The Phoenix Aviation Advisory Board recommended approval to the Phoenix City Council on April 17, 2025, by a vote of 7-0.
Location
Phoenix Sky Harbor International Airport: 2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.