File #: ORD 2016-29    Name: T-Mobile South 2nd Amendment to Lease Agreement
Type: Ordinance Status: Passed
File created: 6/6/2016 In control: City Commission
On agenda: 7/14/2016 Final action: 7/14/2016
Title: AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE THE SECOND AMENDMENT TO THE LEASE AGREEMENT WITH T-MOBILE SOUTH, LLC, WHICH PROVIDES FOR THE CONTINUED LEASING OF CITY LAND FOR A COMMUNICATIONS TOWER AND A MODIFICATION AND INCREASE IN THE AMOUNT OF T-MOBILE'S EQUIPMENT ON THE TOWER AT WINSTON PARK IN EXCHANGE FOR AN INCREASE IN RENT. (SECOND READING)(PUBLIC HEARING)
Indexes: Cell Towers, Ordinance, Telecommunications
Attachments: 1. ORDINANCE 2016-29-T-Mobile Second Amendment to Lease (Winston Park), 2. EXHIBIT A-Second Amendment, 3. EXHIBIT B-Legal Description, 4. EXHIBIT C-Original Lease Agreement, 5. EXHIBIT D-First Amendment

AGENDA ITEM REPORT

TITLE:

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AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE THE SECOND AMENDMENT TO THE LEASE AGREEMENT WITH T-MOBILE SOUTH, LLC, WHICH PROVIDES FOR THE CONTINUED LEASING OF CITY LAND FOR A COMMUNICATIONS TOWER AND A MODIFICATION AND INCREASE IN THE AMOUNT OF T-MOBILE’S EQUIPMENT ON THE TOWER at winston park IN EXCHANGE FOR AN INCREASE IN RENT. (SECOND READING)(PUBLIC HEARING)

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BACKGROUND:

This item was approved on First Reading at the June 23, 2016, Commission Meeting.

On May 8, 2008, the City Commission authorized the Mayor to execute the original lease agreement (“Agreement”) with T-Mobile South, LLC (“T-Mobile”) for the purpose of maintaining a communications tower and related equipment at the City’s Winston Park, 5201 NW 49th Avenue, Coconut Creek, Florida. The Agreement provides for a term of ten (10) years from the effective date with two (2) automatic five (5) year renewals (unless T-Mobile advises the City of its intent not to renew at least six (6) months prior to the end of the current term). On November 13, 2008, the City Commission authorized the Mayor to execute the First Amendment to the lease agreement (“First Amendment”), which provided for modification of the Exhibits to the Agreement.

DISCUSSION:

Currently, T-Mobile desires to amend the lease agreement a second time (“Second Amendment”) to permit it to increase its equipment on the communications tower in exchange for increased rent payments to the City. The rent payment, as provided in the Second Amendment, will increase at a rate of Eight Hundred Thirty-Two Dollars and Sixty-Six Cents ($832.66) per month.

RECOMMENDATION:

Staff recommends approval.

FISCAL IMPACT:

REVENUES:                                          $ 9,991.92 annually

EXPENDITURES:                     $ 0

BUDGETED?                                          No

NOTES:                                                               The revenue impact listed above represents the annual increase in rental income ($832.66 per month).  General Fund Account 01-V3622 - Tower Leases.