Title
Executive Hangar Lease with Salt River Project Agricultural Improvement and Power District at Phoenix Sky Harbor Airport (Ordinance S-46072)
Description
Request to authorize the City Manager, or his designee, to enter into an executive hangar lease with Salt River Project Agricultural Improvement and Power District (SRP) at Phoenix Sky Harbor International Airport (PHX). Rent will be $27,119 annually. Total rent over the four-year term of the lease will be approximately $108,476.
Report
Summary
SRP is requesting to lease executive hangar 11, which is 4,211 square feet and includes adjoining office and shop space. Executive hangar 11 is located near the northwest corner of PHX. The hangar space will be used for the storage and allowed maintenance of SRP’s approved aircraft and for no other use or purpose without the consent of the Aviation Director.
Contract Term
The term will be four years with no options to extend. This lease term will be coterminous with SRP's existing main corporate hangar lease that will expire on Sept. 30, 2023.
Financial Impact
Rent will be $27,119 annually ($6.44 per square foot) and will be adjusted annually based on the Phoenix-Mesa-Scottsdale Consumer Price Index (CPI) or 3 percent, whichever is greater. Total rent over the term of the lease will be approximately $108,476.
Concurrence/Previous Council Action
This item was recommended for approval by the Transportation, Infrastructure and Innovation Subcommittee on Sept. 4, 2019 by a vote of 4-0.
Location
2533 E. Air Lane
Council District: 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.