Title
Facility Lease with Aerial Engagement LLC at Phoenix Deer Valley Airport (Ordinance S-51371) - District 1
Description
Request to retroactively authorize the City Manager, or his designee, to enter into a facility lease with Aerial Engagement LLC (Aerial Engagement) at Phoenix Deer Valley Airport (DVT). Further request to authorize the City Treasurer to accept all funds related to the facility lease.
Report
Summary
Aerial Engagement conducts flight simulator training to the public and has requested to lease approximately 500 square feet of office space in the DVT terminal lobby.
Contract Term
The term of the lease will be two years. Provisions of the lease will include three one-year options to extend the term, which may be exercised at the sole discretion of the Aviation Director or his designee. The lease term will commence on August 6, 2024, and will expire on August 5, 2029, if all three options are exercised.
Financial Impact
Rent for the first year of the lease will be $9,000 or $750 per month. Rent will be subject to annual increases according to the Phoenix-Mesa-Scottsdale Consumer Price Index. Total revenue over the term of the lease will be approximately $45,000, if all options are exercised.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board, Business and Development Subcommittee recommended approval of this item on September 5, 2024, by a vote of 4-0.
The Phoenix Aviation Advisory Board recommended approval of this item on September 19, 2024, by a vote of 7-0.
Location
Phoenix Deer Valley Airport: 702 W. Deer Valley Road
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.