COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Jeff Thuneman, Development Services Director
SUBJECT:Title
Approve Cellular Tower Land Lease Agreement with TowerCom XI-B, LLC, for a New Cellular Communications Site to be Located at 2330 McCulloch Blvd. N. (Chris Gilbert)
Body
FUNDING SOURCE:
N/A
PURPOSE:
Approve Cellular Tower Land Lease Agreement with TowerCom XI-B, LLC, for a new cellular communications site to be located at 2330 McCulloch Blvd. N. on the City-owned property that also contains City Hall and the associated parking lot.
BACKGROUND:
Landline phones that were very common in the 20th Century have largely gone away in favor of cellular communications. This type of service requires specific signal frequencies and strength to be effective, of which tower location and height are very important components, in order to provide adequate service to the residents, businesses, and visitors to the community. There currently are many service gaps across the entire city.
Placement of cellular communications towers requires fairly large properties to provide for sufficient fall zones in all directions should a tower ever suffer a collapse, requires a willing property owner, and needs to fill a service gap at the appropriate location and height to be effective, making finding new tower locations extremely difficult. Due to the City owning most of the larger properties in the areas necessary to improve service gaps, TowerCom XI-B, LLC, approached the City with potential land leases.
These towers are permitted by the Development Code in MU-N Mixed Use - Neighborhood Districts with a Major Conditional Use Permit. The Planning Commission approved the Major Conditional Use Permit for this cell tower site (2330 McCulloch Blvd. N.) at the City Hall property on March 6, 2024, following completion of the public hearing, by a vote of 7-0.
The proposed Land Lease Agreement between the City and TowerCom XI-B, LLC (Lessee), leases a 1600 square foot area to accommodate all the ground equipment and the tower. Lessee can host two (2) additional co-locate cellular service provider arrays. The City also has the capability to co-locate on the tower. The lease includes an initial option term of six (6) months for $1,000 with an extension option of two (2) additional six (6) month renewal terms for $1,000 each. The initial option term allows Lessee to secure all necessary federal, state, and local licenses/permits while still being assured rights to the property. Once the option is exercised the full terms of the lease are activated. The lease will then run for a period of 25 years at the base rent of $1,100 per month, increased by 3% per annum throughout the lease period. If additional co-locates are secured Lessee shall pay the City $300 each per month. Utility and access licenses are included in the agreement to ensure utility service and vehicular access to the tower site.
The full lease documents are attached, including the Lease Agreement, a Memorandum of Lease, and an Affidavit of No Open Deed of Trust on the Mulberry property.
COMMUNITY IMPACT:
The cellular tower will provide enhanced cellular services to the Lessee’s customers, all co-locates’ customers, and improved communication for all City emergency services.
FISCAL IMPACT:
The City will collect $1,100 rent per month for the lease, with an increase of 3% per annum over a full lease period of 25 years.
ATTACHMENTS:
Cellular Tower Lease Agreement
Memorandum of Lease
Affidavit (No Open Deed of Trust(s))
SUGGESTED MOTION:Recommended Action
I move to approve the Cellular Tower Land Lease Agreement with TowerCom XI-B, LLC, and its associated documents for a new Cellular Communications Site to be located at 2330 McCulloch Blvd. N.