Title
Civil Air Patrol Lease Extension at Phoenix Deer Valley Airport (Ordinance S-49625)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to extend a hangar lease with Civil Air Patrol (CAP) for five years with two one-year options at Phoenix Deer Valley Airport (DVT).
Report
Summary
CAP leases a corporate hangar at DVT of approximately 6,000 square feet under the terms of Corporate Hanger Lease Agreement 136822. CAP is a non-profit United States Air Force Auxiliary which provides aviation-related education and flight training to local youth and adults to assist federal and local state authorities in the event of local and national emergencies. CAP uses the hangar facility in support of its non-profit and non-commercial mission, which includes aerial search and rescue, humanitarian aid services, and a cadet program that introduces cadets to aviation.
CAP has been a tenant at DVT since 1989 and leases the hangar facility for one dollar per year consistent with FAA regulations recognizing CAP as a not-for-profit aviation organization and the direct benefits of CAP unit to DVT and to the aviation community.
Contract Term
The term will be for five years with two one-year options to extend, which may be exercised by the Director of Aviation Services. Provisions of the amendment will include an option for CAP to extend the term for an additional five years if CAP invests a minimum of $1 million to expand or modernize the hangar.
Financial Impact
Rent for the lease will remain at $1 per year, which is consistent with rent CAP pays at other airport locations in Arizona. Total rent under the maximum aggregate term of the lease will be $12.
Concurrence/Previous Council Action
City Council previously approved:
- Lease Agreement 136822 (Ordinance S-39339) on Nov. 7, 2012;
- Extension of Lease Agreement 136822 (Ordinance S-46174) on Nov. 20, 2019;
- The Phoenix Aviation Advisory Board, Business and Development Subcommittee recommended approval of this item on March 2, 2023 by a vote of 3-0;
- The Phoenix Aviation Advisory Board recommended approval of this item on March 16, 2023 by a vote of 6-0.
Location
Phoenix Deer Valley Airport, 702 West Deer Valley Road
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.