...Title
Ground Lease with Oso Concrete LLC at Phoenix Sky Harbor International Airport (Ordinance S-47985)
Description
Request to authorize the City Manager, or his designee, to enter into a ground lease with Oso Concrete LLC for real property located at 120 and 130 S. 29th St. (Properties) for two years with five one-year options to extend the term that may be exercised at the sole discretion of the Director of Aviation Services.
Report
Summary
The Aviation Department acquired 130 S. 29th St. in January 2000 and 120 S. 29th St. in October 2001. Oso Concrete LLC (Oso) has operations at 175 S. 29th St. that are across the street from the Properties. Oso has requested to lease the Properties, which total approximately 56,628 square feet. Oso will use the Properties to park vehicles, trailers, and other equipment that relate to its concrete business.
Contract Term
The term of the lease will be two years with five one-year options to extend the term that may be exercised at the sole discretion of the Director of Aviation Services.
Financial Impact
Initial annual rent will be approximately $59,459 ($1.05 per square foot) and will be adjusted annually based on the Phoenix-Mesa-Scottsdale Consumer Price Index or three percent, whichever is greater. Total anticipated revenue over the term of the lease will be approximately $416,215, if all options are exercised.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board recommended this item for approval on Aug. 19, 2021, by a vote of 8-0.
Location
Phoenix Sky Harbor International Airport - 120 S. 29th St. and 130 S. 29th St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.