Council approves 10-year lease for two commercial hangars at Show Low Regional Airport

The Show Low City Council on an unanimous vote approved a 10-year commercial hangar lease and operating agreement with Arrow Products Component Services Inc. for two city-owned hangar units at Show Low Regional Airport.

City staff said the city received two proposals — one for each available unit — and both were from Arrow Products Component Services Inc., so there were no competing bidders. City staff described the lease terms as $2,800 per month per unit plus tax, insurance and applicable monthly user fees, with annual Consumer Price Index (CPI) adjustments and tenant responsibility for utility costs. The contract term runs through Jan. 7, 2035, with an option for a single one-year renewal subject to city approval.

“The terms and conditions of the lease consists of a per unit lease rate of $2,800 per month plus tax insurance and any applicable monthly user fees,” City staff said when presenting the item. Staff recommended approval.

Councilman Judd moved to approve the lease and operating agreement and authorize the mayor to sign on behalf of the city; Councilman Whipple seconded. Mayor called for the vote and the motion passed unanimously.

The council discussion noted the tenant already occupies the hangars and has recently acquired a third unit, meaning the operator will occupy all city-managed commercial hangars at the airport. City staff and councilmembers said the tenant has outgrown its current space and may seek additional capacity in the future.

The lease as presented includes standard CPI escalation language; the agreement assigns utilities to the tenant and requires payment of tax and insurance. Staff said there were no competing proposals for the two available units.