Title
Salt River Project Hangar Lease at Phoenix Sky Harbor International Airport (Ordinance S-44938)
Description
Request to authorize the City Manager, or his designee, to enter into a new corporate hangar lease (Lease) with Salt River Project Agricultural Improvement and Power District (SRP) for a hangar located at 2601 E. Air Lane at Phoenix Sky Harbor International Airport. The Lease may contain other terms and conditions deemed necessary or appropriate by the City Manager or his designee. Anticipated revenue to the Aviation Department will be approximately $630,050 over the five-year term.
Report
Summary
SRP entered into Corporate Hangar Lease Agreement 133317 with the City for the hangar. That lease expired on March 31, 2018. SRP was allowed to remain in the hangar by entering into a Temporary License Agreement 147188, which will expire on Sept. 30, 2018. The hangar is comprised of approximately 14,484 square feet and located at 2601 E. Air Lane. The Lease will be based on substantially the same terms and conditions as Corporate Hangar Lease Agreement 133317.
Contract Term
The term of Lease is five years and will commence on Oct. 1, 2018 and expire on Sept. 30, 2023. The Lease will contain no option to renew or extend the term.
Financial Impact
Rent will be $8.70 per square foot per year, plus applicable taxes. The rental rate will be adjusted annually according to the Consumer Price Index throughout the term of the Lease. Anticipated revenue to the Aviation Department will be approximately $630,050 over the five-year term.
Location
2601 E. Air Lane
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.