Title
Telecommunications Ground Lease
Action
Action:
A. Adopt a Resolution approving a 25-year ground lease with Communications Tower Group, LLC, at 5824 Jim Kidd Road at a base rent rate of $1,500 per month with 15 percent escalation every five years, and
B. Authorize the City Manager to negotiate and execute the ground lease.
Body
Staff Resource(s):
Mike Davis, Engineering and Property Management
Tony Korolos, Engineering and Property Management
Barry Gullet, Charlotte Water
Explanation
§ The City owns an approximately 194-acre property at 5824 Jim Kidd Road as part of the McDowell Wastewater Treatment Plant facility.
§ Staff determined space was available for a ground lease of a 10,000 square foot area with Communications Tower Group, LLC for construction and operation of a telecommunications tower.
§ The terms of the lease are:
- Lessee: Communications Tower Group, LLC
- Term: 25 years
- Base rent rate: $1,500/month
- Escalation: 15% every five years
- Revenue share: $500/month paid by lessee for each sublessee added to the telecommunications tower, in addition to base rent
§ The rent rate was negotiated based on other City telecommunications ground lease rates and available market information.
§ This lease is consistent with the recently approved City-owned Real Estate and Facilities Policy.
Fiscal Note
Funding: Charlotte Water Operating Budget
Attachments
Attachment(s)
Map
Resolution