Agenda Item # 1
Delayed July 12, 2011
Council Agenda
Columbus Consolidated Government
Council Meeting
07/12/2011
Agenda Report # 672
TO: Mayor and Council
SUBJECT: Agenda Extension of Cell Tower Lease (Crown Castle) 3569
South Lumpkin Road
INITIATED BY: Department of Community Reinvestment
Recommendation: Approval is requested to extend the existing cell tower lease
by 10 years extending the contract until 2032. The extension will increase the
monthly rental to $900 per month effective immediately.
Background: The property was first leased in December 1996 for use as a cell
tower location. The current lease is for 20 years. The Lease Agreement is
scheduled to expire April 2022. Crown Castle is currently paying $302.50 per
month with an increase to $332.75 per month scheduled for April 2012. The
extension requested by Crown Castle is due to the increased capital investment
required by their customers for equipment upgrades to meet user demand and
technology changes. Cellular companies are requiring longer terms in order to
protect their investment in the expensive equipment upgrades.
Analysis: This request from Crown Castle would extend the existing lease
agreement and use of the property until 2032. This would provide the City with
an increased revenue flow effective immediately and extend over the additional
10 years until 2032. The new contract would require Council approval of a
renewal in 2022.
Financial Considerations: The City will receive an increase in the monthly
rental income over what it is currently being received for the 20 year length
of the contract. The annual rent will be increased based on the annual
Consumer Price Index - Urban.
Projected Annual Fiscal Impact Statement: The extension of the Lease Agreement
with Crown Castle will increase the annual rental income by $6,807 . Future
rental amounts will be based on the annual Consumer Price Index - Urban.
Legal Considerations: Approval of Council is needed to extend the Lease
Agreement.
Recommendations/ Actions: Approval of the extension of the current lease with
Crown Castle.
A RESOLUTION
NO. _____
A RESOLUTION AUTHORIZING THE EXTENSION OF THE CELL TOWER AGREEMENT WITH CROWN
CASTLE, INC., FOR CELL TOWER LOCATED AT 3569 SOUTH LUMPKIN ROAD IN COLUMBUS,
MUSCOGEE COUNTY, GEORGIA.
WHEREAS, the City of Columbus is currently leasing property to Crown Castle,
Inc. for $302.50, for the purpose of operating a cell tower; and,
WHEREAS, Crown Castle, Inc., is requesting an extension of the existing lease
until 2032 at an increased monthly rental amount of $900 with annual increases
based on the Consumer Price Index - Urban.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:
That the City Manager is hereby authorized to execute the extended Lease
Agreement with Crown Castle, Inc, until 2032 for the existing cell tower
location at 3569 South Lumpkin Road in the amount of $900 with annual
increases based on the Consumer Price Index - Urban.
___________
Introduced at a regular meeting of the Council of Columbus, Georgia, held
the _________day of _____________, 2011 and adopted at said meeting by the
affirmative vote of ___________members of said Council.
Councilor Allen voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
____________________________ _________________________
Tiny Washington, Clerk of Council , Mayor
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