Title
Lease Agreement with Ready Credit Corporation (Ordinance S-43919)
Description
Request to authorize the City Manager, or his designee, to enter into a lease with Ready Credit Corporation for approximately 42 square feet of terminal space at Phoenix Sky Harbor International Airport, for a total estimated revenue amount of $41,400. Ready Credit Corporation will install and operate six cashless kiosks in the space. The lease may contain other terms and conditions deemed necessary or appropriate by the City Manager or his designee.
Report
Summary
Over the past few years, American Airlines, Delta Air Lines, JetBlue Airways, and United Airlines have implemented cashless transaction policies at Phoenix Sky Harbor International Airport. Cashless transactions include ticket sales, baggage charges, inflight upgrades, and miscellaneous fees. In order to provide continuous service to members of the travelling public that have no access to a credit or debit card, the City will lease space to Ready Credit Corporation to install kiosks, which will provide a prepaid debit card in exchange for cash. In addition to the lease, Ready Credit Corporation will enter into a commercial use permit (CUP), under which it will pay eight percent of its gross sales to the Aviation Department each month.
Procurement Information
A sole source determination memo was completed and approved by the Deputy City Manager in accordance with Administrative Regulation 3.10.
Contract Term
The term is three years. The lease will contain a two-year option to extend the term that may be exercised at the discretion of the Aviation Director.
Financial Impact
The Aviation Department will receive approximately $5,040 per year in rent. In addition, the Aviation Department will receive eight percent of total gross receipts under the CUP, which is estimated to be $8,760 per year. The total estimated revenue over the term of the lease is $41,400.
Location
Phoenix Sky Harbor International Airport is located at 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.