Title
Salt River Project Agricultural Improvement and Power District Executive Hangar Lease at Phoenix Sky Harbor International Airport (Ordinance S-47190)
Description
Request to authorize the City Manager, or his designee, to enter into an executive hangar lease with Salt River Project Agricultural Improvement and Power District (SRP) at Phoenix Sky Harbor International Airport (PHX).
Report
Summary
SRP currently leases three hangars at PHX where they store and maintain aircraft of various types. SRP has requested to lease Executive Hangar E12. The new lease will replace an existing lease for Executive Hangar E13, which is scheduled to expire April 30, 2021.
Contract Term
The term of the lease will be for two years. The lease also contains two one-year options to extend the term, which may be exercised by the City Manager or his designee.
Financial Impact
Rent for the first year of the lease will be approximately $29,670 ($7.04 per square foot), plus applicable taxes. Rent will be adjusted annually thereafter by the Phoenix-Mesa-Scottsdale Consumer Price Index. Total anticipated revenue over the four-year term of the lease, if both options to extend the term are exercised, will be approximately $118,673.
Concurrence/Previous Council Action
- The Phoenix Aviation Advisory Board recommended this item for approval on Nov. 19, 2020, by a vote of 8-0.
- The Transportation, Infrastructure and Innovation Subcommittee recommended this item for approval on Dec. 2, 2020, by a vote of 4-0.
Location
2541 E. Air Lane
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.