AVN Briefing Sheet_RTI PHX Air Cargo Development_SawyerT_V01_MLG_Pj.pdf

Aviation Briefing Sheet 
 
Item Number: Enter Agenda Item Number; note if item is on Pay Ordinance 
Item Title:  Request to Issue Northwest Air Cargo Development 
Council Agenda Date:  TBD 
Subject Matter Expert:  Thomas Sawyer 
 
Cell Phone #:  602-884-4877 
 
Request: 
This report requests the Phoenix City Council to issue Northwest Air Cargo Development 
Revenue Contract Solicitation (RCS) to solicit a developer to redevelop approximately 
1,219,680 square feet (approximately 28 acres) within the northwest corner of Phoenix Sky 
Harbor International Airport (PHX) into an air cargo development. 
 
Background: 
The northwest corner at PHX currently consists of corporate hangars, executive hangars, t-
hangars, covered tie-downs, and other buildings. Most of the buildings in this area are at their 
end of life, including the aircraft apron/ramp.  
 
Air cargo facilities at PHX are currently at 100% occupancy. Multiple West Air Cargo tenants 
have requested additional space to support current and future needs.  
 
In October 2021, the Aviation Department (AVN) issued a Request for Information (RFI) to 
potential users and developers for possible redevelopment ideas for this aging infrastructure 
and underutilized land in the northwest corner. The RFI received six responses: three for 
corporate hangars and maintenance, repair, and overhaul hangars; and three for air cargo 
development.  
 
AVN is now seeking a qualified developer to develop approximately 28 acres for air cargo, 
including air cargo buildings (warehouse), aircraft aprons, and supporting structures. The 
successful respondent will enter into a ground lease with AVN. 
 
Procurement Information 
The goals of the Revenue Contract Solicitation are to select a Respondent with extensive 
experience to design, finance, build, operate/lease and maintain a best-in-class air cargo facility. 
  
AVN will conduct an RCS to select a successful respondent. Responsive and responsible 
respondents will be evaluated according to the following evaluation criteria: 
 Qualifications and Experience 
 Experience of Key Personnel 
 Method of Approach to Design, Build, and Operate an Air Cargo Facility 
 Proposed Design Concepts 
 Sustainability 
 
The highest-ranked respondent will be recommended for the award of a ground lease. 
 
The City’s Transparency Policy will be in effect when the RCS is released and throughout the 
RCS process. 
 
The RCS process will include all standard and required outreach efforts and will conduct 
targeted outreach efforts to attract interest for each of these unique contracting opportunities.

Contract Term and Extension Options: 
The term of the contract will be 30 years with one ten-year option to extend at the sole discretion 
of the Director of Aviation Services. 
 
Financial Impact: 
Current rent for undeveloped land at PHX is $1.05 per square foot. Annual revenue for this 
ground lease will be approximately $1,280,664 per year. Rent adjustments shall increase (but 
never decrease) beginning on the three-year anniversary of rent commencement and then 
continuing on every three-year anniversary thereafter. Rent will be adjusted upward according to 
the Consumer Price Index (CPI) for Phoenix-Mesa-Scottsdale or three percent, whichever is 
greatest. Total anticipated rent over the term of the ground lease will be approximately 
$38,419,920. 
 
Questions or Concerns: 
Q: What are the desired outcomes from this solicitation? 
A: 
 Provide the City with a new best-in-class air cargo facility to meet the growing demand of 
the air cargo industry at PHX. 
 Select an experienced and capable Respondent with demonstrated ability to design, 
finance, and build an air cargo facility.   
 Have an esthetically pleasing overall design, including buildings, landscape area, access 
roads, signage, etc. that revitalizes this area of PHX and the surrounding neighborhood.  
 Select an experienced Respondent capable of managing all ongoing operations and 
maintenance of the air cargo facility. 
 Select Respondents, including subtenant(s) and/or joint venture partner(s) (if any), who 
have experience in the successful operation of other air cargo facilities.  
 Select Respondents based on the entire Response. 
 
Q: What about evaluation criteria? 
A: Responsive and responsible Respondents will be evaluated according to the following 
evaluation criteria: 
 
 Qualifications and Experience (300 points) 
 Method of Approach to Design, Build and Operate an Air Cargo Facility (250 points) 
 Proposed Design Concepts (200 points) 
 Sustainability  (150 points)  
 Experience of Key Personnel (100 points) 
 
*Points subject to change 
 
Q: What are the Sustainability Goals: 
A: Responses will be evaluated on the Respondent’s commitment to sustainability in the design, 
building, and operation of the air cargo facility, including the use of sustainable materials and 
design concepts that meet, or exceed, LEED Silver Certification.