The City of Scottsdale appears primed to enter into a decades-long service contract with Piedmont Hawthorne Aviation doing business as Ross Aviation.
Scottsdale City Council in January unanimously approved an amendment to a 24-year agreement with Ross Aviation for fixed-based operations at the Scottsdale Municipal Airport, 15000 N. Airport Drive, extending the previously approved deal for an additional five or 10 years, officials say.
“As one of the airport’s fixed-base operations, Ross Aviation provides aeronautical services such as fueling, aircraft parking and ground handling services to aircraft flying into Scottsdale Airport,” said Carmen Williams, Scottsdale aviation finance and administration manager, in her report to City Council.
“The proposed lease amendment will extend the lease term for an additional five years to 34 years pending a final certification of occupancy for the tenant improvement program (Project 1) defined in exhibit A, which includes construction of an additional 56,000 square feet of hangar space.”
Ms. Williams reports the completion deadline for Project 1 at the Scottsdale Airport is Dec. 31, 2022.
“The lease term may be further extended be either an additional five or 10 years depending on what additional tenant improvements they may complete,” she said. “The first option is if the lessee elects to complete an upgrade and refresh of the existing hangar and office (project 2A) as defined in exhibit B.”
Furthermore, Ms. Williams outlines complete deadline for project 2A --- if the option is picked up by the lessee --- is Dec. 31, 2027.
“As a second option, if lessee elects to remove the existing hangar and office and build new north hangars/office of substantially the same size or greater (project 2B), the term of the agreement shall extend for an additional 10 years effective upon the date of the a final certificate of occupancy for project 2B,” she explained.
Deadline for completion of project 2B is Dec. 31, 2027.
Ms. Williams points out establishment of the new lease agreements allows Ross Aviation the ability to redevelop and upgrade existing facilities.
The Scottsdale Airport Advisory Commission held a public hearing Nov. 20, 2019 whereas no negative comments were provided, city staff report.