Title
New Ground Lease with Bandura & Sons, Inc. (Ordinance S-50285)
Description
Request to authorize the City Manager, or his designee, to execute a ground lease with Bandura & Sons, Inc. (Bandura) at 2933 E. Washington St. at Phoenix Sky Harbor International Airport (PHX).
Report
Summary
Bandura is requesting to enter into a Ground Lease for approximately 680 square feet of land north of PHX at 2933 E. Washington St. for parking employee vehicles for its adjacent business. Bandura is currently using the area under a temporary license agreement that expires on Jan. 1, 2024.
Contract Term
The term will be for five years, with five one-year options to extend.
Financial Impact
Rent will be approximately $40 per month ($.70 per square foot). Rent will be adjusted based on market rate as determined by appraisal beginning with the fourth year of the agreement; future adjustments will be applied every three years thereafter. Total anticipated rent from this ground lease over the term will be approximately $2,380.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board recommended this item for approval on Sept. 21, 2023, by vote of 6-0.
Location
Phoenix Sky Harbor International Airport - 2933 E. Washington St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.