Title
Consider a memorandum/resolution approving a lease agreement with BTS TOWERS, LLC. to build a 50’ x 50’ lease area for a monopole cell tower and utilize a 30’ wide access & utility easement at Lion’s Club Park.
Body
DATE: June 3, 2025
TO: Kent Cagle, City Manager
FROM: Antonio Murphy, Executive Director of Parks and Recreation
SUBJECT: Approve a lease agreement with BTS TOWERS, LLC. for a monopole cell tower space and utility easement at Lion’s Club Park
BACKGROUND AND FINDINGS:
On October 19, 2024, Gen 7 Engineering, LLC contacted the City of Killeen to discuss the availability of land suitable for constructing a 50’ x 50’ lease area for a monopole cell tower and a 30’ wide access and utility easement. The anchor tenant for this project is AT&T, which has identified parcel ID 409117 located at Lion’s Club Park within the designated search area. They aim to enter into a lease agreement with the City for the construction of the tower, a secured fenced area, and an access road to the site.
The easement will be perpetual, while the lease agreement will have an initial term of five years, with nine automatic five-year renewal terms, allowing for a total lease term of up to fifty years. The initial agreement includes a monthly rent payment of $2,000, with a 1.5% annual escalation. Additionally, Vertical Bridge Development, LLC will have a two-year option period, for which they will pay the City of Killeen a one-time, non-refundable fee of $2,000 in exchange for the exclusive right to execute the lease during that period. The option period allows Vertical Bridge Development, LLC time to obtain all necessary City zoning and permitting approvals, as well as comply with NEPA, FAA, FCC, and environmental regulations.
Cell towers provide significant benefits to cities by enhancing mobile communication and ensuring reliable connectivity for residents and emergency services. They improve coverage, which supports public safety and facilitates smart city initiatives, ultimately fostering a more informed and connected community. In summary, cell towers are essential components of modern urban infrastructure.
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 $2,000 a month from the effective date of the contract with a 1.5% increase annually for up to fifty years.
Is this a one-time or recurring revenue/expenditure?
Recurring revenue in account 100-46712-100-100-000000.
Is this revenue/expenditure budgeted?
No, this is a new lease that was not included in the FY 2025 budget planning.
If not, where will the money come from?
Revenue will be appropriated for the upcoming fiscal year during the usual budget process.
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
N/A
RECOMMENDATION:
Authorize the City Manager, or his designee, to approve the lease agreement with BTS TOWERS, LLC to build a 50’ x 50’ lease area for a monopole cell tower and utilize a 30’ wide access and utility easement at Lion’s Club Park, and authorize the City Manager, or his designee, to execute any and all change orders within the amounts set by state and local law.
DEPARTMENTAL CLEARANCES:
Engineering
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreement
Certificate of Interested Parties
Presentation