Title
Facility Lease Extension with Galaxy International, Inc. at Phoenix Goodyear Airport (Ordinance S-51372) - Out of City
Description
Request to retroactively authorize the City Manager, or his designee, to extend the term of Facility Lease No. 134004 (Lease) with Galaxy International, Inc. (Galaxy) at Phoenix Goodyear Airport (GYR).
Report
Summary
Galaxy operates an aircraft maintenance, repair, and overhaul business in approximately 13,900 square feet of space in a City-owned hangar at GYR. Galaxy has requested to extend the Lease term for two years with two five-year options to extend. The Lease term and extension options coincide with the remaining term on a separate ground lease Galaxy has with the City to construct and operate an aircraft demolition pad at GYR.
Contract Term
The Lease will be amended to extend the term for two years. The Lease will include two five-year options to extend the term of the Lease that may be exercised at the discretion of the Aviation Director. The extension will have an effective date of July 1, 2024, and will conclude on July 27, 2036, if both options are exercised.
Financial Impact
Rent for the first year of the two-year term will be approximately $73,809 and will increase annually according to the Phoenix-Mesa-Scottsdale Consumer Price Index. Total revenue from the extension of the term and two extension options will be approximately $885,708.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board, Business and Development Subcommittee recommended approval of the item on Sept. 5, 2024 by a vote of 4-0.
The Phoenix Aviation Advisory Board recommended approval of the item on Sept. 19, 2024 by a vote of 7-0.
Location
Phoenix Goodyear Airport, 1658 S. Litchfield Road, Goodyear, Arizona
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.