Title
Ground Lease Amendment with Arizona Air National Guard at Phoenix Sky Harbor International Airport
Description
This report requests the Transportation, Infrastructure and Planning Subcommittee recommend City Council approval to execute an amendment to Ground Lease 1899 with Arizona Air National Guard, to extend the lease term for 10 years at Phoenix Sky Harbor International Airport.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
Arizona Air National Guard (ANG) entered into Ground Lease 1899 (Lease) on June 15, 1949 for approximately 36 acres of land at Phoenix Sky Harbor International Airport (PHX). Exchange Agreement 977460 was executed in May 1997, which increased the area of the leased premises to 60 acres. The term of the Lease will expire on June 30, 2048 and ANG is requesting that the term be extended for 10 years to June 30, 2058. The extended term will provide a 30-year lease term and is needed for the ANG to be eligible for the next generation of air refuel tankers to be based at PHX.
Contract Term
This amendment will extend the end date of the Ground Lease term 10 years, from June 30, 2048 to June 30, 2058.
Financial Impact
Current rent is $1.00 per year. There are no rent escalators or adjustments in the Lease.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board recommended City Council approval of this item on April 21, 2022, by a vote of 9-0.
Location
3200 E. Old Tower Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.