FACILITIESRECOMMENDED

phoenix_aviation_advisory_board_meeting_agenda_dec.pdf

Long-Term FBO Lease Extension for Jackson Jet

Minimum capital investment $12,000,000; $600,000 cash deposit; first-year total revenue approx. $1,011,611; minimum estimated revenue over 25-year extension projected to exceed $33,326,923Phoenix Sky Harbor (City of Phoenix)JACKSON JET CENTER PHOENIX LLCDecember 18, 2025

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Description

The Phoenix Aviation Advisory Board is asked to recommend that the City Council amend and restate Ground Lease 94042 with Jackson Jet Center Phoenix, LLC to extend the FBO lease at Sky Harbor by up to 25 years. Jackson Jet will invest at least $12 million in facility enhancements and pay ground rent structured to generate more than $33 million in revenue over the extension term.

Contract Details

Contract Amount

Minimum capital investment $12,000,000; $600,000 cash deposit; first-year total revenue approx. $1,011,611; minimum estimated revenue over 25-year extension projected to exceed $33,326,923

Vendor

JACKSON JET CENTER PHOENIX LLC

Agency

Phoenix Sky Harbor (City of Phoenix), AZ

Contract Type

FACILITIES

Document Date

December 18, 2025

Contract Term

Existing lease expires October 31, 2028; proposed extension up to 25 years from November 1, 2028 to October 31, 2053 (reduced to 15 years if both hangars not built)

Renewal Date

2053-10-31

Renewal Info

Single extension of up to 25 years beginning November 1, 2028; no additional extension options beyond the maximum 25-year term. Full 25-year extension is contingent on construction of two new hangars, otherwise reduced to a 15-year extension.

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