Title
Consider a memorandum/resolution approving a lease agreement with Crown Castle Towers, LLC for the construction of a cell tower and authorize a 25-foot-wide access/utility easement.
Body
DATE: August 5, 2025
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Executive Director Public Works
SUBJECT: Approve a lease agreement and access utility easement with Crown Castle Towers, LLC, for the construction of a cell tower
BACKGROUND AND FINDINGS:
In November 2024, Crown Castle Towers, LLC, contacted City Staff to discuss the availability of land suitable for the construction of a cell tower on the southeastern side of the City of Killeen. Crown Castle identified City-owned property south of Stagecoach Road and east Acorn Creek as a prime location for the tower. Crown Castle would like to enter into a lease agreement with the City in order to secure the property and obtain a utility/access easement with the location.
The lease agreement contains a two-year option period for $3,000. The option period may be extended for two years for $1,500. The option period will allow Crown Castle time to seek and obtain all necessary local, state, and federal permits and regulatory approvals. At the expiration of the option period, the lease agreement and easement will have an initial five-year term. Crown Castle will pay $2,000 per month during the initial term. The agreement may then be extended for nineteen additional five-year terms. Rent payments during any subsequent renewal term will increase by 15%.
Cell towers provide significant benefits to cities by enhancing mobile communications and ensuring reliable connectivity for residents and emergency services. Crown Castle has identified the proposed area as one with limited cell coverage. The lease agreement would help alleviate this issue and provide valuable benefits to the City and its residents.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms with state and local policies.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
Revenue for FY 2025 will be $3,000. Once the tower is constructed, revenue will amount to $24,000 per year for the first five years with a 15% increase per extension period.
Is this a one-time or recurring revenue/expenditure?
This is a recurring revenue.
Is this revenue/expenditure budgeted?
No
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
The option payment for FY 2025 will be posted to revenue account 100-46712-100-100-000000 (General Fund - Tower Leases), which is currently budgeted for the City's existing tower leases. Revenue from the proposed lease will be incorporated into future fiscal year budgets.
RECOMMENDATION:
Authorize the City Manager, or designee, to approve the lease agreement and utility/access easement with Crown Castle, LLC, for a cell tower and the utilization of a 25-foot-wide access/utility easement from Stagecoach Road, and authorize the City Manager, or designee, to execute any and all additional documentation necessary to effectuate the lease agreement.
DEPARTMENTAL CLEARANCES:
Public Works
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreement
Memorandum
Certificate of Interested Parties
Presentation