CITY COUNCIL AGENDA ITEM
Memo Date: September 7, 2021
Agenda Date: September 14, 2021
Prepared By: Robert Beach, Chief Technology Officer
Requested Action:
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Authorize the City Manager to execute the Telecommunications Tower Colocation Consent and Lease Agreement between New Cingular Wireless PCS, LLC (AT&T) and the City of Cocoa. The Revenue will be recognized after the adoption of the FY22 Budget.
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BACKGROUND:
Primeco Personal Communications, L.P., a Delaware Limited Partnership, d/b/a Verizon Wireless ("Verizon") owns and operates a 150' tall telecommunications tower on the City's property located at 2003 Michigan Avenue (old Fire Station 3). The City has a current lease agreement with Verizon and was approached by AT&T to enter into a ground lease agreement to collocate telecommunications equipment on the tower and on the ground at this location.
The lease agreement between the City and AT&T would be for a portion of the City's property located at 2003 Michigan Avenue as depicted in "Exhibit B" of the lease agreement. The initial lease term shall consist of five (5) years with an annual lease payment to the City of $30,000 per year with six (6) renewal terms of five (5) years each. With each renewal term, the annual rent due to the City would increase by five (5) percent.
This lease agreement will generate new revenue in the amount of $30,000 per year at initiation of the lease. Due to timing and the budget adoption process, the revenue will be recognized after October 1, 2021 in the FY22 Budget.
STRATEGIC PLAN CONNECTION:
N/A
BUDGETARY IMPACT:
001-0000-362.00-00
Rents and Royalties
$30,000
PREVIOUS ACTION:
The City of Cocoa entered into an Option and Lease Agreement, dated August 18, 2000, which was amended by the Amendment to Option and Lease Agreement dated July 5, 2001 and further amended by the Second Amendment to Option and Lease Agreement dated January 15, 2015 (collectively, the "Site Agreement") with Primeco Person...
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