AGENDA ITEM REPORT
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AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE THE FIRST AMENDMENT TO THE LEASE AGREEMENT BY AND BETWEEN THE CITY AND SPRINT SPECTRUM, L.P. DATED AUGUST 10, 2006. (SECOND READING)
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BACKGROUND:
This item was approved on First Reading at the January 22, 2015 Commission meeting with no conditions or changes.
Sprint Spectrum Realty Company, L.P., successor-in-interest to Sprint Spectrum, LP. ("Sprint") has an existing Lease Agreement with the City dated August 10, 2006 ("Lease") to lease a portion of city-owned land from the City located at 4800 West Copans Rd. ("Government Center") for the purpose of constructing and maintaining a communictions tower and related equipment. The lease provides that for an original lease term of ten (10) years from August 10, 2006 with two (2) automatic five (5) year renewals (unless Sprint advises the City of its intent not to renew at least six (6) months prior to the end of the current term). The lease provides for a rent payment of Thirty-Two Thousand Dollars ($32,000.00) per year with annual increases. The current lease amount is $43,940.
DISCUSSION:
The City is committed to increasing its revenue by permitting Sprint to modify and increase the amount of related equipment on the tower in exchange for an increase in rent to Fifty-One Thousand, Two Hundred Twenty-Two Dollars ($51,222.00) per year.
RECOMMENDATION:
Staff recommends approval.
FISCAL IMPACT:
REVENUES: $ 51,222
EXPENDITURES: $ 0
BUDGETED? Y
NOTES The current lease amount is budgeted in Account 01-V36220 Tower Leases. This item will increase projected revenue by $7,282.