Title
Telecommunications Ground Lease Extension for New Cingular Wireless, LLC Amendment
Action
Action:
Approve an amendment to New Cingular Wireless PCS, LLC’s ground lease at 7621 North Tryon Street (parcel identification number 047-221-22), extending the lease term for five additional, five-year terms, through August 17, 2045.
Body
Staff Resource(s):
Tony Korolos, Engineering & Property Management
Explanation
§ The City owns an approximately 0.9-acre property at 7621 North Tryon Street (parcel identification number 047-221-22).
§ On December 30, 1994, the previous property owners entered into a ground lease agreement with Gearon and Company, Inc. to install a cell tower with an initial term of five years and five additional, five-year terms, through August 17, 2020.
§ At the request of New Cingular Wireless, LLC (successor in interest to Gearon and Company Inc.); the City proposes to amend the ground lease to extend the term through August 17, 2045.
§ Contingent upon City Council approval and effective as of August 18, 2020, the base annual rent will increase from the current rate of $13,992 per year to $16,090.80, subject to escalation by 15% at the beginning of each subsequent five-year term.
§ Crown Castle, the tower management company, will pay a signing bonus of $5,500 on behalf of New Cingular Wireless, 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
Attachment
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