City Council Meeting - FINAL


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  8.C.       
Meeting Date: 09/06/2022  
From: Bryce Doty, Real Estate Manager

Information
TITLE:
Ratification of Lease Amendment:  Ratify the Lease Amendment with United States General Services Administration (GSA) – Transportation Security Administration (TSA) leased space at airport.
STAFF RECOMMENDED ACTION:
Ratify lease amendment with United States General Services Administration for the Transportation Security Administration (TSA) leased space at the airport.
Executive Summary:
Public law requires airport owners to provide security checkpoint screening areas to Transportation Security Administration (TSA) free of charge; however, leases for any additional office space, break room, training, or storage areas may be considered. The TSA currently leases 1,000 square feet of office space and two structured parking spots at the airport under a lease which expired 3/31/2022. The lease amendment, entered into to avoid any disruption of the lease, changes the following terms:

1. Extends the lease term until 3/31/2027, with a GSA option to terminate the lease as of 3/31/2025;
2. Adds a 2% lease adjustment increase for both the shell and operating expenses of the lease, previous lease did not include any increase on shell rate. The lease amendment also requires a new standard provision related to prohibited telecommunications equipment, which is related to national security concerns. 
Financial Impact:
The lease will bring over $118,425 of revenue over a three year term.  If the lease remains in effect for the final two years, the lease will bring in an additional $82,950 of revenue. 
Policy Impact:
N/A
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
  • High Performing Governance - Enhance the organization's fiscal stability & increase efficiency & effectiveness
  • Deliver outstanding services to residents through a healthy, well maintained infrastructure system.
Flagstaff Regional Plan
  • Policy T.3.4. Actively manage parking, including cost and supply, to support land use, transportation, and economic development goals.
  • Goal T.10. Strengthen and expand the role of Flagstaff Pulliam Airport as the dominant hub for passenger, air freight, public safety flights, and other services in northern Arizona.
Has There Been Previous Council Decision on This:
The original lease was approved by Council in 2011
Key Considerations:
This lease designates two parking spots for dedicated TSA employee use as well as office space outside of the bag scan area for TSA employees. 
Attachments
Lease Amendment


    

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