Title
Voluntary Acquisition of Improved Real Property Located at 4020 E. Air Lane for Phoenix Sky Harbor International Airport (Ordinance S-50398)
Description
Request to authorize the City Manager, or his designee, to perform all acts necessary to voluntarily acquire all rights, title, and interest to improved real property located at 4020 E. Air Lane within the City's appraised value. Further request to authorize to provide relocation benefits and assistance as federally allowed, to execute a lease and other agreements, as may be necessary to and in furtherance of this acquisition.
Additionally, request to authorize the City Controller to disburse, and for the City Treasurer to accept, all funds related to this item.
Report
Summary
The property to be acquired is strategically located adjacent to Phoenix Sky Harbor International Airport's (Airport) north airfield fence line and operations. Acquiring this property will allow the Airport to enhance safety and security measures of the Airport's ongoing operations along Air Lane.
The property consists of nine parcels, and is approximately 2.05 acres, improved with an approximate 28,377 square foot single-story light manufacturing industrial building, ancillary structures and associated land improvements owned by Nelson Engineering Co. (Nelson). Currently, the property is occupied by Nelson's manufacturing business of aerospace components.
Nelson agreed to voluntarily sell the property to the City and requested that City-owned land is made available to purchase as a replacement site for its business, if determined feasible. Staff will seek additional Phoenix City Council authorization for any City-owned land disposition related to this acquisition. If necessary and to allow the occupant time to relocate, the City may lease the property to Nelson or other related entity after closing at a rental rate based on market rent for a term that will coincide with the vacate date. The purchase agreement may contain other terms and conditions deemed necessary or appropriate.
Once the property is acquired and the property vacated, the Aviation Department will demolish the structures in favor of improvements to support aeronautical development. If an agreement to purchase cannot be reached at this time, the property may be acquired using other available means as authorized by Phoenix City Council at a later date.
The parcels to be acquired are identified in Attachment A.
Financial Impact
Funding is available in the Aviation Department's Capital Improvement Program.
Location
4020 E. Air Lane
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation and Finance departments.