Title
ORDINANCE NO. O17-13
AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, APPROVING A MASTER AIRPORT TERMINAL OFFICE LEASE AGREEMENT FOR USE BY THE GLENDALE MUNICIPAL AIRPORT.
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for the City Council to waive reading beyond the title and adopt an ordinance approving a new master Airport Terminal Office Lease Agreement and to authorize the City Manager to enter into new and renewal leases for Airport terminal office suites at the Glendale Municipal Airport (Airport).
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Background
The Airport leases office space in the terminal building to private individuals and companies. In recent years, non-aviation companies have expressed interest in leasing available space. The Airport has an existing Master Lease Agreement Template for Airport Terminal office Suites approved by City Council January 25, 2011, but the template is in need of updates and revisions as it limited office leases to commercial aviation activities.
Analysis
The new master Airport Terminal Office Lease Agreement is for the rental of the office only and removes the references for commercial aviation activities. The commercial aviation activities will be authorized with the Specialized Aviation Service Operator (SASO) master agreement template. This agreement template also incorporates all the required Federal Aviation Administration (FAA) language as well as the required insurance language provided by Risk Management.
The Airport terminal currently has a vacancy rate of approximately 30%. Updating the master Airport Terminal Office Lease Agreement will enable the Airport to expand the potential pool of lessors and maximize the rentable space.
Previous Related Council Action
On November 22, 2016, City Council approved a master Specialized Aviation Service Operator (SASO) Agreement template for use by the Glendale Municipal Airport.
On January 25, 2011, City Council approved a master Lease Agreement for the Glendale Municipal Airport Terminal building.
Community Benefit/Public Involvement
The Glendale Municipal Airport plays an important role in meeting the demand for aviation services in the West Valley and serves as a general aviation reliever airport for Phoenix Sky Harbor International Airport. Businesses interested in office space leases will be provided with a clear, consistent, and specific agreement appropriate for office space leasing.
At the February 15, 2017 meeting, the Aviation Advisory Commission passed a motion recommending the City Council approve a master Airport Terminal Office Lease Agreement and authorize the City Manager or designee to enter into new Lease Agreements for office space in the Airport terminal building on behalf of the Glendale Municipal Airport and City Council. No substantive changes shall be made to the master agreement.
Budget and Financial Impacts
The revenue will depend on the rental rate and the occupancy rate. The rental rate will be listed in the lease agreement and adjusted per the Consumer Price Index (CPI) annually.