Title
Phoenix Rising FC, LLC Ground Lease at Phoenix Sky Harbor International Airport (Ordinance S-49193)
Description
Request to authorize the City Manager, or his designee, to enter into a ground lease with Phoenix Rising FC, LLC for 435,600 square feet (approximately 10 acres) of Phoenix Sky Harbor International Airport (Airport) land. Further requesting authorization to issue rent credits to Phoenix Rising FC, LLC to reimburse it for improvements that are needed by the Airport and will benefit the Airport beyond the term of the lease.
Report
Summary
Phoenix Rising FC, LLC is requesting to enter into a ground lease of Airport land to construct a temporary soccer stadium and associated facilities that may include concession stands, a portable sports book, and a practice facility.
Contract Term
The term of the ground lease will be five years. Provisions of the contract will include five one-year options to extend the term, to be exercised at the sole discretion of the Director of Aviation Services.
Financial Impact
Rent for the first year of the term will be approximately $300,564. Rent will be adjusted annually based on the Phoenix-Mesa-Scottsdale Consumer Price Index. Total anticipated revenue from the lease over the five-year term will be approximately $1,502,820. Rent credits will be issued to reimburse costs for improvements that are needed by the Airport and will benefit the Airport beyond the term of the lease.
Location
Phoenix Sky Harbor International Airport, 3801 East Washington St., Phoenix, Ariz.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Ginger Spencer and the Aviation and Community and Economic Development departments.