Title
Arizona Department of Public Safety Corporate Hangar Lease Extension
Description
This report requests the Transportation, Infrastructure and Innovation Subcommittee to recommend that the City Council approval of the amendment of Department of Public Safety (DPS) Corporate Hangar Lease Agreement 142410 (Lease) at Phoenix Sky Harbor International Airport (PHX) by extending the term three years and including one one-year option to extend the term.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
DPS has occupied the corporate hangar under the current lease since Nov. 1, 2013. DPS uses the hangar to store and maintain its aircraft. DPS has asked to extend the term of the Lease until Oct. 31, 2023 and include one one-year option to extend the term.
Contract Term
The term will be extended three years. The Lease will include one one-year option to extend the term that may be exercised at the sole discretion of the Aviation Director.
Financial Impact
Rent for the first year of the three-year extension will be approximately $125,454 ($8.70 per square foot). Total anticipated revenue over the term, if the option is exercised, will be approximately $501,816. Rent will be adjusted annually based on the Consumer Price Index (CPI).
Concurrence/Previous Council Action
This item was recommended for approval by the Phoenix Aviation Advisory Board on Aug. 20, 2020.
Location
2615 E. Air Lane
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.