Agenda Item # 2

Columbus Consolidated Government
Council Meeting

September 25, 2018

Agenda Report # 27


TO: Mayor and Council

SUBJECT: Cellphone Tower Lease Extension - 3601 South Lumpkin Road

INITIATED BY: Department of Community Reinvestment


Recommendation: Approval is requested to extend the lease agreement with Crown Castle PT, Inc. for the tower site located at 3601 South Lumpkin Road (Parcel #061-001-015), in Columbus, Muscogee County, Georgia. (Lease Agreement Attached)

Background: Crown Castle currently has a lease agreement with the City for a cell tower located at 3601 South Lumpkin Road. The current agreement pays $12,168 per year to the City, with renewals every 5 years for an expiration in 2032. They have requested to amend that lease agreement to extend the term by four (4) additional five (5) year terms to the year 2052. As part of this request, they will increase the annual rent by $5,832 from $12,168 to $18,000, with additional 3% increases each renewal period (every 5 years), with the first increase in 2022. Crown Castle 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. The Georgia Municipal Association (GMA) reviewed this request 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 $12,168 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 Crown Castle PT, Inc. for the tower site located at 3601 South Lumpkin Road (Parcel #061-001-015), in Columbus, Muscogee County, Georgia.



Lumkin Road celltower lease agreement.pdfLumkin Road celltower lease agreement.pdf


A RESOLUTION

NO. _____


A RESOLUTION AUTHORIZING THE CITY MANAGER TO RENEW THE LEASE AGREEMENT WITH CROWN CASTLE PT, INC. FOR THE TOWER SITE LOCATED AT 3601 SOUTH LUMPKIN ROAD (PARCEL#061-001-015), IN COLUMBUS, MUSCOGEE COUNTY, GEORGIA.

WHEREAS, Crown Castle PT, Inc. (“Crown Castle”) currently has a lease agreement with the City for a cell tower located at 3601 South Lumpkin Road; and,

WHEREAS, Crown Castle has requested an amendment of that lease agreement to extend the term by four (4) additional five (5) year terms to the year 2052 and incorporate an additional notice provision; and,

WHEREAS, Crown Castle they will increase the annual rent to $18,000, with additional 3% increases each renewal period; and,

WHEREAS, Crown Castle 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 Crown Castle PT, Inc. for the tower site located at 3601 South Lumpkin Road (Parcel #061-001-015), 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