Title
Swissport Fueling Inc. Facility Lease at Phoenix Sky Harbor International Airport (Ordinance S-47703)
Description
Request to authorize the City Manager, or his designee, to enter into a facility lease agreement for up to 5,760 square feet (three bays) of cargo bay space with Swissport Fueling, Inc. at Phoenix Sky Harbor International Airport for a term of five years.
Report
Summary
Swissport Fueling, Inc. is a ground service operator that provides ground service equipment maintenance for airlines at Phoenix Sky Harbor International Airport (PHX). Swissport currently occupies 1,920 square feet (one bay) of cargo bay space in the West Air Cargo (WAC) Building A, Bay 13. Swissport wants to relocate and expand by entering into a new facility lease agreement for three bays in the WAC. Swissport will use two bays for maintenance and a third bay will be improved for office, breakroom, and restroom facilities.
Contract Term
The term is five years with no options to extend the term.
Financial Impact
Rent for the first year of the term will be up to $70,502.40 ($12.24 per-square-foot). Rent will be adjusted annually based on PHX's Rates & Charges program. Total anticipated revenue over the term will be approximately $352,512.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board recommended this item for approval on May 20, 2021, by a vote of 8-0.
Location
Phoenix Sky Harbor International Airport - 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.