Introduction of Ordinance to Approve
Lease for Building 39 with Pyka, Inc.
City Council Meeting
September 5, 2023
Building 39: 950 West Tower
• Located in Tidelands; building
may be leased but not sold
• 106,000 square feet in size
• Currently vacant
• Formerly occupied by Delphi,
Inc.
• Adjacent to Saildrone, Inc.,
developer of autonomous
sailboats
Pyka Electric Aircraft
• Design and production of
autonomous electric aircraft
• Autonomous aircraft safer for
dangerous applications
• Electric aircraft to reduce GHG
emissions in the aircraft industry
• Initial applications are dangerous
applications, such as crop dusting
and remote cargo.
• Future applications provide
opportunities for reduced
greenhouse emissions and noise
from aircraft industry.
3 Lease Terms
Interior:
• Aircraft design,
fabrication, and assembly;
office uses for
administrative support.
• Annual Science fair
Exterior:
• View corridors preserved
on east and west of
building
• Screening fence required
around storage of
materials
4 Lease Terms, cont. (View Corridors)
5 North
South
8-Year Term with 3-Year Option to
Extend (11-year Total Potential Term)
Rent:
• $100,700 per month
• $1,208,400 per year
Rent escalator:
• 3.5% starting year 3
• Over $14,000,000 over 11 years
Lease Terms, cont.
• Hold Public Hearing, and
• Approve Introduction of Ordinance approving draft Lease with Pyka, Inc.
Recommendation