Title
Hangar Lease Amendment with DP64, LLC at Phoenix Sky Harbor International Airport (Ordinance S-45616)
Description
Request to authorize the City Manager, or his designee, to amend Executive Hangar Lease 138896 with DP64, LLC at Phoenix Sky Harbor International Airport (PHX) to extend the lease term three and one-half years. Anticipated rent over the term of the lease will be approximately $124,943.
Report
Summary
DP64, LLC has requested to extend the term of their Executive Hangar Lease for three and one-half years to expire Dec. 31, 2022. The original lease expires June 30, 2019. The hangar is used for the storage and allowed maintenance of DP64’s approved aircraft and for no other use or purpose without the consent of the Aviation Director.
Contract Term
The term will be three and one-half years. There are no options to extend.
Financial Impact
Rent for the first year of the lease extension will be approximately $35,698 ($6.55 per square foot) plus applicable tax. Rent will be adjusted annually thereafter by three percent or the Consumer Price Index (CPI) using the Phoenix-Mesa-Scottsdale index, whichever is greater. Anticipated rent over the term of the lease will be approximately $124,943.
Concurrence/Previous Council Action
This item was recommended for approval at the Aviation and Transportation Subcommittee meeting on April 23, 2019, by a vote of 2-0.
Location
Phoenix Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.