Title
Broad, LLC Corporate Hangar Lease Agreement - Amendment (Ordinance S-48539)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Corporate Hangar Lease 145949 with Broad, LLC to allocate up to $50,000 in rent credits for hangar maintenance at 2531 E. Air Lane at Phoenix Sky Harbor International Airport.
Report
Summary
The purpose of this amendment is for the City of Phoenix to compensate Broad, LLC for expenses related to replacement of the air-conditioning (HVAC) systems on the premises at a cost not to exceed $50,000 via rent credits.
The City of Phoenix and Broad, LLC entered into Corporate Hangar Lease 145949 on Aug. 15, 2017. The lease requires that the City maintain the air-conditioning (HVAC) systems on the premises. The air-conditioning systems are at the end of life and require full replacement.
Contract Terms
The term of the lease is two years with three one-year options to extend the term that may be exercised at the sole discretion of the Aviation Director. No change to the term is requested.
Financial Impact
The current monthly revenue is $9,368.11. Revenue is to be reduced by approximately $5,555.55 monthly as a rent credit for a period of nine months. The total reduction in revenue over the nine-month period will be approximately $50,000.
Concurrence/Previous Council Action
The City Council approved Corporate Hangar Lease 145949 (Ordinance S-43607) on June 7, 2017.
Location
Phoenix Sky Harbor International Airport - 2531 E. Air Lane
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.