Title
American Airlines Federal Credit Union - Airport Lease Agreement (Ordinance S-51319)
Description
Request to authorize the City Manager, or his designee, to enter into a new Airport Facility Lease Agreement with American Airlines Federal Credit Union (AAFCU) at Phoenix Sky Harbor International Airport to operate an employee credit union.
Report
Summary
AAFCU currently leases approximately 900 square feet on the Baggage Claim level of Terminal 4, to operate an employee credit union. The current lease (FLA 141788) was executed in June 2015 and is set to expire on October 25, 2024. The tenant wishes to enter into a new Facility Lease Agreement effective October 26, 2024.
Contract Term
The term will be five years, with two one-year renewal options, to be exercised at the sole discretion of the Aviation Director.
Financial Impact
The rent shall be based on the Airport’s Rates & Charges program, as provided in § 4-1738 of the Phoenix City Code. Rent for the first year will be approximately $168,372. The total anticipated rent over the term of the lease, if all options are exercised, will be approximately $1,178,604.
Concurrence/Previous Council Action
The current lease authorized under Ordinance S-41418 was adopted by Phoenix City Council on January 1, 2015.
The Business and Development Subcommittee of the Phoenix Aviation Advisory Board recommended this item for approval on August 1, 2024, by a vote of 4-0.
The Phoenix Aviation Advisory Board recommended this item for approval on August 15, 2024, by a vote of 8-0.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.