Title
Ground Lease Amendment with Arizona Air National Guard at Phoenix Sky Harbor International Airport (Ordinance S-48779)
Description
Request to authorize the City Manager, or his designee, to amend Ground Lease 1899 with Arizona Air National Guard to extend the term of the Lease for 10 years at Phoenix Sky Harbor International Airport.
Report
Summary
On June 15, 1949, Arizona Air National Guard (ANG) and the City entered into Ground Lease 1899 (Lease) for approximately 36 acres of land at Phoenix Sky Harbor International Airport (PHX). In May 1997, ANG and the City entered into Exchange Agreement 977460, which increased the area of the leased premises to 60 acres. The term of the Lease will expire on June 30, 2048 and ANG has requested that the term be extended for 10 years to June 30, 2058. The extended term will provide a 30-year lease term, which is needed for ANG to be eligible for the next generation of air refuel tankers to be based at PHX. The ANG has also agreed to incorporate additional terms and conditions to terminate the Lease earlier if the leased premises no longer directly support an aeronautical mission at PHX.
Contract Term
The amendment will extend the term of the Lease term 10 years from June 30, 2048 to June 30, 2058.
Financial Impact
Current rent is $1.00 per year. There is no rent escalation or rent adjustment provision in the Lease.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board recommended City Council approval of this item on April 21, 2022 by a vote of 9-0.
The Transportation, Infrastructure and Planning Subcommittee recommended approval of this item on May 18, 2022 by a vote of 4-0.
Location
3200 E. Old Tower Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.