AGENDA ITEM REPORT
TITLE:
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AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE THE LEASE AGREEMENT WITH T-MOBILE SOUTH, LLC, WHICH PROVIDES FOR THE LEASE OF CITY LAND AT THE CITY’S COMMUNITY CENTER FOR A COMMUNICATIONS TOWER AND RELATED EQUIPMENT. (SECOND READING)(PUBLIC HEARING)
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BACKGROUND:
This item was approved on First Reading at the May 26, 2016, Commission Meeting.
T-Mobile South, LLC (“T-Mobile”) has applied to lease a portion of City-owned land from the City located at 1100 Lyons Road (“Community Center”) for the purpose of maintaining a communications tower.
DISCUSSION:
The lease provides for T-Mobile to dismantle and remove the existing tower at T-Mobile’s sole expense and construct a new concealed monopole tower and foundation. Upon completion of the tower, T-Mobile will provide a bill of sale to the City for the tower structure and its foundation. During construction, the City will receive continuous, uninterrupted service through its public safety communication equipment as T-Mobile has agreed to relocate the City’s equipment to a temporary Cell on Wheels (COW) facility. The agreement has an original lease 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). The lease provides for a rental payment of Thirty-Nine Thousand Nine Hundred Dollars ($39,900.00) per year with an annual increase in rent of three (3) percent, less a 50% rent abatement for the first ten (10) years not to exceed One Hundred Ninety-Nine Thousand, Six Hundred Dollars ($199,600.00).
RECOMMENDATION:
Staff recommends approval.
FISCAL IMPACT:
REVENUES: $ 19,950 (1st year)
EXPENDITURES: N/A
BUDGETED? No
NOTES: General Fund account #01-V36220-Tower Leases