Title
Telecommunications Ground Lease Extension for STC Two, LLC Amendment
Action
Action:
Approve an amendment to STC Two, LLC’s ground lease at 4426 Central Avenue (parcel identification number 131-071-01), extending the term of the lease for five additional, five-year terms, through June 22, 2048.
Body
Staff Resource(s):
Tony Korolos, Engineering & Property Management
Explanation
§ The City owns an approximately 76-acre property at 4426 Central Avenue (parcel identification number 131-071-01) used for Evergreen Cemetery.
§ On May 21, 1998, the City entered into a ground lease agreement with SprintCom to install a cell tower with an initial term of five years with five additional, five-year terms through June 22, 2023.
§ At the request of STC Two, LLC (successor in interest to SprintCom); the City proposes to extend the term of the ground lease through June 22, 2048, with five additional, five-year terms.
§ Contingent upon City Council approval and effective as of the date of the amendment, the base monthly rent of $1,280.96 will escalate by 3% annually, and STC Two, LLC will pay a flat fee of $350 per month for each subtenant added to the tower.
§ Crown Castle, the tower management company, will pay a signing bonus of $5,500 on behalf of STC Two, LLC, upon execution of the amendment. The revenue generated by this agreement, including the signing bonus, will be deposited into the City’s General Fund.
§ The terms and fees are consistent with other telecommunications ground leases managed by the City.
Fiscal Note
Funding: Not Applicable
Attachments
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