Title
Fox Rent A Car Lease Amendment (Ordinance S-44613)
Description
Request to authorize the City Manager, or his designee, to enter into an amendment to Airport Lease 118863 (Lease) with Fox Rent A Car, Inc. (Fox) for land at 1520 E. Apache St. (Premises) to extend the term for five years and add one option to extend the term for five years or until Fox's Rental Car Center concession agreement expires or is terminated, whichever occurs first. The amendment may contain other terms and conditions deemed necessary or appropriate by the City Manager or his designee. Estimated revenue to the City over the initial term and option period will be approximately $58,600, not including CPI adjustments.
Report
Summary
Since 2006, Fox has leased a 6,893-square-foot parcel of land located at the Premises. Fox owns the land surrounding the Premises and is currently using the Premises for additional rental car overflow parking. Fox wants to continue to lease the Premises. The current Lease expires in December 2018.
Contract Term
The term of the Lease will be extended by five years. The Lease will include one option to extend the term for five years or until Fox's Rental Car Center concession agreement expires or is terminated, whichever occurs first. The option to extend may be exercised at the sole discretion of the Aviation Director.
Financial Impact
Rent for the extended term will be $0.85 per square foot per year and will be adjusted annually according to the Consumer Price Index (CPI). Estimated revenue to the City over the initial term and option period will be approximately $58,600, not including CPI adjustments.
Concurrence/Previous Council Action
This item was recommended by the Downtown, Aviation, Economy and Innovation Subcommittee on May 2, 2018 by a vote of 4-0.
Location
1520 E. Apache St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.