Council to take action to ratify and approve the request for extension of the Airport Property Lease Agreement between the City of Buckeye, an Arizona municipal corporation, Skydive Buckeye, LLC, an A
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4.B CITY OF BUCKEYE Regular Council Meeting COUNCIL ACTION REPORT MEETING DATE: 09/16/25 AGENDA ITEM: 4.B. AV - Lease Agreement extension for Skydive Buckeye and Desert Petroleum. DATE PREPARED: 09/11/25 DISTRICT NO.: 1 STAFF LIAISON: Scott Gray, Airport Director, sgray@buckeyeaz.gov, (623) 349- 6885 DEPARTMENT: Legal AGENDA ITEM TYPE: Consent Agenda Items / New Business ACTION/MOTION: (This language identifies the formal motion to be made by the Council) Council to take action to ratify and approve the request for extension of the Airport Property Lease Agreement between the City of Buckeye, an Arizona municipal corporation, Skydive Buckeye, LLC, an Arizona limited liability company and Desert Petroleum, LLC, an Arizona limited liability company; and authorize the City Manager to extend the term of the Lease Agreement, from November 1, 2024, through October 31, 2026. SUMMARY PROJECT DESCRIPTION: Skydive Buckeye and Desert Petroleum, LLC, desire to extend the Lease Agreement with the City, pursuant to Section 2.2 of said Lease. Skydive Buckeye provides an aeronautical activity consisting of recreational skydiving which not only provides revenue for the airport but also provides significant exposure of the aviation community to the general public. The initial Lease term is November 1, 2021, through October 31, 2024. The Lease provides for two (2) extension terms of one year each. Lessee provided written notice in July 2024 and again in August 2025, requesting a Lease extension, as approval of a Lease Extension must be in writing. This current lease request represents the final extensions available under the Lease and will result in the end of the Lease Agreement. Skydive Buckeye and Desert Petroleum, LLC, desire to exercise the option to extend the Lease Agreement through October 31, 2026. Skydive Buckeye provides an aeronautical activity consisting of recreational skydiving which not only provides revenue for the airport, but also provides significant exposure of the aviation community to the general public. BENEFITS: Skydive Buckeye provides an aeronautical activity consisting of recreational skydiving which not only provides revenue for the airport, but provides significant exposure of aviation activities to the general public, thereby elevating the profile of the airport and its operations. In 2020, Skydive Buckeye created Desert Petroleum LLC, in order to self-fuel their skydiving operation, and to provide Jet A fuel to the flying public via a 3,000 gallon fuel truck. Including the fuel farm in Skydive Buckeye/Desert Petroleum's Lease Extensions will allow Skydive Buckeye/Desert Petroleum. FUTURE ACTION: Once the City Manager approves the two, one-year extensions of the Lease Agreement in writing, the Lease will expire on October 31, 2026. FINANCIAL IMPACT STATEMENT: Annual revenue is approximately $11,400. BUDGETED: Yes FISCAL YEAR: 2025 and 2026 FUND/DEPARTMENT: 10001200-413131 Items related to a project or facility location must include an attached vicinity map for Council Review. ATTACHMENTS: Skydive Buckeye_Exhibit A.pdf SeydeShane - 2024-07-25 10-05.pdf 2025 KBXK Lease Extension.pdf 2182 Skydive Buckeye, LLC & Desert Petroleum, LLC Lease.pdf