Background

Phoenix Sky Harbor International Airport has the 3rd largest rental car market in the United States. Consisting of a 40,000-car fleet the operating rental car companies generate approximately $360 million in gross revenues every year. Due to forecasted passenger increases at the Airport (which equates to an increased volume of rental car customers), the Airport and the rental car industry agreed to evaluate the manner in which rental car services and facilities are provided to the traveling public. A 1999 feasibility study validated the viability of developing a consolidated rental car center served by a common busing operation. The upcoming consolidated facility will benefit Sky Harbor International Airport, the participating rental car companies and our customers. The following are the conclusions to this study:

• Phoenix Sky Harbor Center, located immediately west of the Airport at 16th and Buckeye, was selected as the preferred location.
• The facility would provide built-in expansion zones to meet future needs.
• A Customer Service Building would be provided.
• All participating rental car companies would have the opportunity for their own exclusive-use Vehicle Service Site for washing, fueling and overall maintenance of the vehicles along with overflow/storage parking spaces.
• Common busing would be implemented with an initial fleet of approximately 62 buses.
• The facility would be financed by Customer Facility Charge (CFC) applied to each rented vehicle.

The rental car companies endorsed the project as proposed, and on May 2, 2000, after significant public review, the City Council authorized staff to proceed with the project.

Description of the Rental Car Center

The Project will allow one central location for car rental operations with common busing, thereby reducing traffic “on-Airport” and freeing up Terminal building space currently used for car rental counters and Terminal garage space used for parking of rental cars. The Rental Car Center will be located on a 141-acre site in Sky Harbor Center just west of the Airport. The development will include:

• A Customer Service Building of approximately 120,000 square feet, which will include public areas and tenant retail space for approximately 13 companies.
• A Parking Garage for 5,600 rental cars.
• Individual Service Center site for the participating Rental Car Companies to service vehicles.
• Related infrastructure including roadways, civil improvements, signage and landscaping.
• Total Project Cost of $260 million.
• Completion date of Winter 2005.

A common bus system will take customers from the respective Terminals at Sky Harbor International Airport to the Rental Car Center where they will be dropped off at curbside and enter the Customer Service Building lobby. Customers will go to the agency counter of their choice and perform their transaction, exit the building into the parking garage by taking an escalator or elevator and pick-up their rental car. Upon return, the customer will drop off the rental car on the same level from which they picked up their car, and proceed to the pick-up curb where they will be returned to the appropriate Terminal by the common bus.

The facility will be designed to accommodate a future airport Automated People Mover system as well as provide for expansion capability for new or existing rental car agencies.

Participants (Rental Car Companies)

Rental car companies expected to occupy the new facility include:

• Advantage
• Avis
• Dollar
• Hertz
• Alamo / National
• Budget
• Enterprise
• Thrifty

Benefits

The following benefits will be realized once the Rental Car Center is completed:

• Centralized vehicle rental and return process.
• Reduced Airport roadway congestion and vehicle emissions.
• Increased convenience for the traveling public.
• “Recapturing” of 1,500 parking spaces at the Airport Terminal garages.
• Opportunities for existing agencies to expand and new rental car operators to locate at the Airport.

Economic Impact

The economic impact that the Rental Car Industry brings to the Airport and the surrounding community is significant. The industry brings the following benefits to the community:

• Rental car companies employ approximately 2,300 Valley residents.
• Phoenix rental car companies generate approximately $260 million annual revenue (Figures compiled year 2000).
• Airport rental car operations provide $171M direct economic benefit annually to the Phoenix metropolitan region.
• Thousands of local jobs will be created during the two-year construction of the facility.

Location

The proposed Rental Car center site is located immediately west of the Sky Harbor International Airport in the Sky Harbor Center.

Adjacent to the western edge of the Airport, Sky Harbor Center, a 550-acre, mixed-use corporate and industrial center, is easily accessible by air and rail services, Interstates 10 and 17, and local freeway systems. The center, owned by the City of Phoenix, was developed to attract domestic and international business. The City of Phoenix promotes a high quality, modern business environment within the center. Phoenix Sky Harbor Center has attracted companies such as Bank of America, Bank One, Allied Signal, Wyle Laboratories, The Hertz Corporation, America West Airlines, Koll Company and Caterair International.

Bounded by Buckeye Road on the North, 16th Street on the west, Interstate 17 on the south and Interstate 10 on the east, the proposed new Rental Car Center will be situated on an approximate 141-acre parcel located in the southwest portion of the Sky Harbor Center. The Rental Car Center will be designed according to strict guidelines to be consistent with the master-planned corporate and industrial center.

Development Schedule

The following is a summary schedule that graphically illustrates the key Project Phases of the project.

Project Status

The project has progressed well into the Construction Phase.

Arts Program

The Public Art Program being utilized by the Phoenix Arts and Culture office has become internationally recognized for its unique and innovative use of artists on design teams for large infrastructure projects such as civic buildings, freeways, and bridges. Design teams allow for meaningful interaction between artists and architects, engineers and other design professionals to develop landmark infrastructure that is unique to Phoenix. The Rental Car Center offers an ideal opportunity for this integrated design team approach. The City of Phoenix has retained highly qualified Artists, to collaborate with the Rental Car Center design team.