Chandler council OKs airport trainer’s lease amendment
Courtesy of city of Chandler
This aerial image shows where Chandler Air Service Inc. plans to build a hangar, aircraft ramp and offices by its newly approved Aug. 31, 2026, deadline. CAS was granted a lease amendment and extension Aug. 14 by the Chandler City Council.
Many companies can’t find construction financing for projects the past few years, and that is impacting one Chandler company looking to expand at the city’s airport.
The Chandler City Council approved, during its Aug. 14 meeting, the first amendment to a city lease to Chandler Air Service Inc. first signed in September 2022.
CAS, a pilot-training-focused service, has been at Chandler Municipal Airport for about 40 years and wants to expand by building a new hangar, an office building and other improvements.
After having trouble obtaining financing for the construction project, the city sent CAS a letter this year notifying the company it’s in default on its lease, but CAS has since obtained both financing and construction permits.
The last line on a time line events is “July 2025: Bonds and all other terms were satisfied.”
Chandler Municipal Airport Manager Ryan Reeves said a first load of steel for construction is due to be dropped off in September.
“There are three items of note included in the lease,” Reeves told council during an Aug. 11 study session. “The first two are performance measures. The third is a day-for-day credit for delays not caused by the tenant (CAS) themselves.”
The performance measures are for CAS to pull all construction permits by the first anniversary of the amendment signing, and to earn a certificate of occupancy — a way of measuring construction is complete — by Aug. 31, 2026.
The area CAS is leasing from the city is in the northwest corner of the Chandler Municipal Airport complex, adjacent to the runways.
The lease calls for a minimum development of a 14,400-square-foot hangar, 3,000 square feet of office space, an aircraft parking/staging ramp and associated surface parking, a staff report states.
The 2022 lease agreement required CAS to break ground by the end of the first year, or Sept. 26, 2023 and obtain a certificate of occupancy by year two, or Sept. 26, 2024.
The FAA environmental clearance process extended the time line and wasn’t received until May 2023, the report states.
Though CAS remained in close communication with Reeves and other city staff, the company missed lease agreement deadlines, and after CAS received notification of a loss of funding, the city issued a notice of lease termination in February, which gave CAS 30 days to vacate.
Soon after, the longtime city partner received the promise of funding through Core Bank, which was secured by June, replacing the previously withdrawn commitment from Heritage Bank, the report states.
Chandler City Councilmember Jane Poston asked if Reeves and other staff, even with CAS being a longtime partner, considered issuing an all-new request for proposal for a new vendor as a replacement.
“To say nothing of what’s already been spent developing this project, a new RFP process would add a year or more to development,” Reeves said. “This was the most direct route to getting a new hangar and other facilities to help grow our airport.”
Jason W. Brooks News Editor | Chandler Independent
Jason W. Brooks joined Independent Newsmedia, Inc., USA, in July 2021 as an associate editor. After a year covering Buckeye, he has covered Chandler since the fall of 2022, in addition to assisting the Daily Independent throughout his time at INI.
Education: University of New Mexico, bachelor of arts in journalism and mass communication, print emphasis, English minor.
Random Fact: He and his siblings witnessed a Space Shuttle launch and landing in the same year in person, on opposite coasts.
Hobbies: Karaoke, bicycling and American Sign Language.
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