20260211-008 FedEx building and ground lease — original pdf

Backup

City of Austin Recommendation for Action File #: 26-1076, Agenda Item #: 4. 2/26/2026(cid:4) Posting Language Authorize negotiation and execution of a building and ground lease with Federal Express Corporation for approximately 76,757 square feet of the cargo building at 9301 Cargo Ave., Austin, Texas 78719, 146,033 square feet of the airport cargo apron area, 79,333 square feet of the cargo handling area, 163,465 square feet of parking area, and 11,448 square feet of equipment storage area at Austin-Bergstrom International Airport, for a term of 10 years, commencing on January 1, 2026. Funding: This item is projected to be revenue neutral in the Fiscal Year 2025-2026 Austin Aviation Operating Budget. The item consolidates the tenant’s existing contracts related to the lease and use of cargo apron areas and cargo handling areas into a new 10-year agreement. Accordingly, the tenant’s projected total rental revenue is unchanged for Fiscal Year 2025-2026. Lead Department Austin Aviation Fiscal Note This item is projected to be revenue neutral in the Fiscal Year 2025-2026 Operating Budget of Austin Aviation. The item consolidates the tenant’s existing contracts related to the lease and use of cargo apron areas and cargo handling areas into the new lease. Accordingly, the tenant’s projected total rental revenue is unchanged. For More Information: Inquiries should be directed to Tracy Thompson, Airport Chief Officer - Business & External Affairs at tracy.thompson@flyaustin.com <mailto:tracy.thompson@flyaustin.com>, 512-530-5023. Council Committee, Boards and Commission Action: To be reviewed by the Austin Airport Advisory Commission on February 11, 2025. Additional Backup Information: Austin Aviation seeks to streamline the contracts with cargo carriers related to the lease and use of cargo apron areas, cargo handling areas, and the lease and use cargo buildings by incorporating the cargo apron area and cargo handling area square footage into the cargo building leases. Federal Express Corporation (FedEx) currently has a cargo building lease with the City for a term of occupancy through June 30, 2027. Under this agreement, FedEx will have preferential use of approximately 79,333 square feet of cargo handling space in the cargo handling area and approximately 146,033 square feet of aircraft parking area in the airport cargo apron area. FedEx will also lease the cargo building at 9301 Cargo Ave., 11,448 square feet of equipment storage area and 163,465 square feet of employee parking and operational use. . City of Austin Page 1 of 1 Printed on 2/4/2026 powered by Legistar™ (cid:5) (cid:6)