Agenda Item # 3

Columbus Consolidated Government
Council Meeting

September 25, 2018

Agenda Report # 28


TO: Mayor and Council

SUBJECT: Cellphone Tower Lease Extension - 5105 Steam Mill Road

INITIATED BY: Department of Community Reinvestment



Recommendation: Approval is requested to extend the lease agreement with Tower Development Corporation for the tower site located at 5105 Steam Mill Road (Parcel #094-001-040), in Columbus, Muscogee County, Georgia. (Lease Agreement Attached)

Background: Tower Development Corporation currently has a lease agreement with the City for a cell tower located at 5105 Steam Mill Road. The current agreement pays $6,900 per year to the City, with renewals every 5 years for an expiration in 2031. They have requested to amend that lease agreement to extend the term to the year 2051. As part of this request, they will increase the annual rent by $11,100 from $6,900 to $18,000, with additional 3% increases each renewal period (every 5 years), with the first increase in 2020. Tower Development Corporation has also agreed to pay a one-time fee of $25,000, and they will implement a revenue share provision where they will pay the City 30% of any rent they receive from future tenants that use the tower. The City will agree to an additional notice provision. This request has been reviewed by the Georgia Municipal Association (GMA) and they feel comfortable with the terms.

Analysis: Crown Castle shall be solely responsible for all costs related to any construction or maintenance activities it undertakes on this tower at no cost to the City. This lease extension and amendment will provide additional revenue to the City.

Financial Considerations: There will be an increase in the annual rent from $6,900 to $18,000, with additional 3% increases with each renewal period. There will also be a one-time fee of $25,000, and a revenue share provision where they will pay the City 30% of any rent they receive from future tenants that use this tower.

Legal Considerations: Any lease agreement involving the City requires Council approval.

Recommendations/ Actions: Approval is requested to renew the lease agreement with Tower Development Corporation for the tower site located at 5105 Steam Mill Road (Parcel #094-001-040), in Columbus, Muscogee County, Georgia.


Steam Mill celltower lease agreement.pdfSteam Mill celltower lease agreement.pdf

A RESOLUTION
NO. _____


A RESOLUTION AUTHORIZING THE CITY MANAGER TO RENEW THE LEASE AGREEMENT WITH TOWER DEVELOPMENT CORPORATION FOR THE TOWER SITE LOCATED AT 5105 STEAM MILL ROAD (PARCEL#094-001-040), IN COLUMBUS, MUSCOGEE COUNTY, GEORGIA.

WHEREAS, Tower Development Corporation (“Tower “) currently has a lease agreement with the City for a cell tower located at 5105 Steam Mill Road; and,

WHEREAS, Tower has requested an amendment of that lease agreement to extend the term to the year 2051 and incorporate an additional notice provision; and,

WHEREAS, Tower will increase the annual rent to $18,000, with additional 3% increases every five (5) year renewal period; and,

WHEREAS, Tower will pay a one-time fee of $25,000 and will implement a revenue share provision where they will pay the City 30% of any rent they receive from future tenants that use this tower.

NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:

That the City Manager is hereby authorized to renew the lease agreement with Tower Development Corporation for the tower site located at 5105 Steam Mill Road (Parcel #094-001-040), in Columbus, Muscogee County, Georgia per the attached lease agreement.
_________________

Introduced at a regular meeting of the Council of Columbus, Georgia, held the _________ day of _____________, 2018 and adopted at said meeting by the affirmative vote of __________ members of said Council.


Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Garrett voting __________.
Councilor House voting __________.
Councilor Huff voting __________.
Councilor Thomas voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.

_________________________________ __________________________
Lindsey Glisson, Deputy Clerk of Council Teresa Pike Tomlinson, Mayor