Title
Arizona Department of Public Safety Corporate Hangar Lease Extension (Ordinance S-46941)
Description
Request to authorize the City Manager, or his designee, to amend Department of Public Safety (DPS) Corporate Hangar Lease Agreement 142410 (Lease) at Phoenix Sky Harbor International Airport by extending the term three years and adding one, one-year option to extend the term that may be exercised at the sole discretion of the Aviation Director. Total anticipated revenue over the term, if the option is exercised, will be approximately $501,816.
Report
Summary
DPS has occupied the corporate hangar under its current lease since Nov. 1, 2013. DPS uses the hangar to store and maintain its aircraft. DPS has asked to extend the term of the Lease until Oct. 31, 2023 and add one one-year option to extend the term.
Contract Term
The term will be extended three years and the Lease will be amended to add one, one-year option to extend the term that may be exercised at the sole discretion of the Aviation Director.
Financial Impact
Rent for the first year of the extended term will be approximately $125,454 ($8.70 per square foot). Total anticipated revenue over the term, if the option is exercised, will be approximately $501,816. Rent will be adjusted annually based on the Consumer Price Index.
Concurrence/Previous Council Action
This item was recommended for approval at the Transportation, Infrastructure and Innovation Subcommittee meeting on Sept. 2, 2020, by a vote of 4-0.
Location
2615 E. Air Lane
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.