TITLE
Consider a memorandum/resolution approving amendments to T-Mobile leases for cell sites at Fire Stations 3, 5 and 7.
SUMMARY
DATE: July 16, 2019
TO: Ronald L. Olson, City Manager
FROM: Kathy Davis, City Attorney
SUBJECT: Amendments to leases with T-Mobile for cell sites at Fire Stations 3, 5 and 7
BACKGROUND AND FINDINGS:
In 2005, the City Council approved leases with VoiceStream (now T-Mobile) for cell sites at fire stations 3 (Twin Creek), 5 (Jasper) and 7 (Watercrest).The initial term was for five (5) years with three (3) five-year options, totaling 20 years. Rent payments were initially $700 per month per location with a 15% increase upon each five-year renewal. The city receives additional compensation for any colocation the provider is able to establish.
The station 5 lease has been amended twice, both times to increase the leased area and rent. The term of the lease has also been extended until 2040. The station 7 lease was amended once to increase the leased area and the rent.
The current monthly rents, without any colocation revenue, are:
Station 3: $926
Station 5: $1,962
Station 7: $1,501
T-Mobile is proposing amendments to each lease.
Station 3: T-Mobile proposes to extend the number of lease extensions to six, meaning the lease would expire in 2055. The city would receive a one-time 10% rent increase, increasing rent to $1,019. The 15% renewal increase in 2020 would raise the rent to $1,171.
Station 5: T-Mobile proposes to extend the term of the lease to 2055 to match the other two lease amendments. The amendment also allows T-Mobile an option to lease an additional 200 square feet at station 5 at a location to be agreed upon by both parties and with increased rent at the per square foot amount being paid by T-Mobile at the time the of the election.
Station 7: T-Mobile proposes to extend the number of lease extensions to six, meaning the lease would expire in 2055. The city would receive a one-time 10% rent increase, incr...
Click here for full text