Title
Ground Lease with Galaxy International, Inc. at Phoenix Goodyear Airport (Ordinance S-46175)
Description
Request to authorize the City Manager, or his designee, to enter into a ground lease (Lease) with Galaxy International, Inc. (Galaxy) at Phoenix Goodyear Airport (GYR) for a term of five years with two five-year options to extend the term.
Report
Summary
Galaxy currently has a facility lease at GYR for space inside Hangar No. 18. Galaxy has requested to lease additional space. Galaxy has requested approximately 96,341 square feet (2.2 acres) of unimproved land for the purpose of dismantling aircraft and possible commercial aircraft maintenance, repair, and overall operation in the future.
Contract Term
The term will be five years with two five-year options to extend the term that may be exercised at the sole discretion of the Aviation Director.
Financial Impact
Rent will be approximately $35,646 ($0.37 per square foot) and will be adjusted annually basis based on the Phoenix-Mesa-Scottsdale Consumer Price Index or three percent, whichever is greater. The total anticipated revenue over the term of the Lease will be approximately $534,690.
Concurrence/Previous Council Action
This item was recommended for approval by the Phoenix Aviation Advisory Board on Oct. 17, 2019 by a vote of 7-0.
Location
Phoenix Goodyear Airport, 1658 S. Litchfield Road, Goodyear, Ariz.
Council District(s): Out of City
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.