Title
Facility License Agreement with LGSTX Services, Inc. (Ordinance S-45122)
Description
Request to authorize the City Manager, or his designee, to enter into a Facility License Agreement (Agreement) with LGSTX Services, Inc. (LGSTX) for 49,614 square feet in Buildings A, B, and C of the West Air Cargo Facility. The rent for the agreement will be approximately $829,855 for the first year. The rent will be adjusted annually based on Airline Rates and Charges.
Report
Summary
LGSTX specializes in providing facility maintenance services, aviation ground support equipment services, and distribution services. The company is requesting to enter into a Facility License Agreement for 49,614 square feet in Buildings A, B, and C of the West Air Cargo Facility. The space being requested consists of 21,120 square feet of vacant space in Building A, and an additional 28,494 square feet in Buildings B and C, currently occupied by ABX Air, Inc. (ABX) under Letter of Authorization (LOA) 146613. ABX is a sister company to LGSTX and has requested to consolidate all space used by ABX and LGSTX into one agreement.
Contract Term
The term will be for two years, with two, one-year options to extend at the sole discretion of the Aviation Director.
Financial Impact
Rent for the agreement will be approximately $829,855 for the first year. The rent will be adjusted annually based on Airline Rates and Charges.
Location
Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.