Title
ORDINANCE NO. O17-16
AN ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE THE AIRPORT TERMINAL LEASE AGREEMENTS WITH SKYQUEST AVIATION, LLC FOR CERTAIN OFFICE SUITES IN THE TERMINAL BUILDING AT THE GLENDALE MUNICIPAL AIRPORT.
Staff Contact: Jack Friedline, Director, Public Works
end
Purpose and Recommended Action
Recommendation
This is a request for City Council to waive reading beyond title and adopt an ordinance authorizing the City Manager to enter into five (5) Lease Agreements with Skyquest Aviation, LLC (formally GCH Services, LLC - Gold Coast Helicopters) for Suite 101, 103, 107A-C, 108, and 109 in the terminal building at the Glendale Municipal Airport.
Background
Skyquest Aviation, LLC currently occupy six office suites, seven tie downs, and has a land lease in the south box hangar area at the Glendale Municipal Airport. The company has requested to expand on the first floor by adding suites 107A, 107B and 107C and consolidate by terminating the leases for suites 206C and 206D.
Analysis
Skyquest will relocate personnel from suite 101 and use that space for storage to support the pilot shop in suite 103, allowing a reduction in the rental rate to $16.08 psf/yr. Existing leases in suites 103, 108 and 109 have expired. At the new rates and charges, the new lease rates for suites 103, 108 and 109, and rate for the new lease for suites 107A, 107B, and 107C, will be set at $21.48 psf/yr.
The damage and cleaning deposits are waived based on the tenant long term history. The Glendale City Council approved the new Variable and Negotiable rates and charges on November 10, 2015 from a recommendation of the Aviation Advisory Commission.
Previous Related Council Action
On April 12, 2016, the City Council approved a Terminal Suite lease with GCH Services, LLC (Skyquest, LLC) for Suite 101.
On November 10, 2015, the City Council approved the new rates and charges that included variable and negotiable lease rates.
On January 25, 2011, the City Council approved the Master Terminal Agreement Template for Airport Terminal Office suites.
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. Skyquest Aviation, LLC provides aircraft and helicopter maintenance, air transportation, and flight training, and has been a good and long term tenant. The rental of the office suite will provide additional revenues and will increase the potential self-sustainability of the airport, enabling staff to better maintain and operate the public facility.
The Aviation Advisory Commission approved a following motion at the March 15, 2017 meeting to recommend the City Council authorize the City Manager to enter into a Lease Agreement Airport Terminal Office with Skyquest Aviation, LLC for office suite 101 at a negotiated rate of $16.08 psf/yr plus tax, and office suites 103, 107A-C, 108, and 109 at a negotiated rate of $21.48 psf/yr plus tax.
Budget and Financial Impacts
The yearly revenue for all of the suites will be $47,268.24 plus tax or $48,666.35 including tax.