Title
Gannon and Scott Phoenix, Inc., Extend Ground Lease 134127 (Ordinance S-43422)
Description
Request to authorize the City Manager, or his designee, to extend ground Lease 134127 with Gannon and Scott Phoenix, Inc., (Gannon), at Phoenix Sky Harbor Center.
Report
Summary
Since July 16, 2012, Gannon has leased Aviation-owned property adjacent to its facility (located at 2113 E. Sky Harbor Circle South) for employee parking. The lease will expire on July 15, 2017, and Gannon has requested an extension. The leased site boundaries will also be adjusted to accommodate technical Federal Aviation Administration requirements.
Contract Term
The lease extension will be for five years from July 16, 2017, to July 15, 2022, with one five-year option to extend to July 15, 2027, which may be exercised at the sole discretion of the Aviation Director. Additionally, a six month prior written termination notification will be given to the lessee should the property be needed for Airport expansion purposes.
Financial Impact
Annual ground rent will be $12,243 with annual Consumer Price Index adjustments.
Location
Parking area south of and adjacent to 2113 E. Sky Harbor Circle South at Phoenix Sky Harbor International Airport.
Department
Responsible Department
This item is submitted by Deputy City Manager Paul Blue and the Aviation Department.