Agenda Item # 3
Columbus Consolidated Government
Council Meeting
12/13/2011
Agenda Report # 721
TO: Mayor and Council
SUBJECT: Cell Tower Lease Extension
INITIATED BY: David Arrington, Deputy City Manager
Recommendation: Approval is requested to execute a ground lease extension for
with SBA Communications Corporation on the Schatulga Road tower lease GA09926-A
for two (2) additional five (5) year terms.
Background: The City has leased space on the Schatulga Road tower to SBA
Communications since 2004 (Resolution 508-03) consisting of four (4) five
(year) terms. This tower is located behind the Heavy Equipment Office on
Schatulga Road. The current lease provides for a 15% increase in the amount of
the lease payment every five year term. The annual lease payment is $13,800
which will increase to $15,870 in 2014 and $18,250 in 2019. The current lease
is due to expire in eleven (11) years on August 5, 2024. SBA Communications
desires to extend the lease for two additional five (5) year terms to bring the
total remaining lease term to 21 years. This extension will provide carriers
with the confidence to make large capital investments in upgrading their
equipment.
Analysis: SBA Communications proposes to provide a one-time bonus of $5,000
for the extension of the lease for two (2) additional five year terms. The
company also proposes to increase the amount lease payments at the beginning of
the first of the two additional terms from 15% to 25% bringing the annual lease
payment in 2024 to $22,813.
Financial Considerations: The lease extension will provide an additional
$5,000 in the FY 2012 budget.
Projected Annual Fiscal Impact Statement: The City would receive additional
revenue in subsequent years according to the terms of the lease agreement.
Legal Considerations: Council must approve all contracts
Recommendations/ Actions: Authorize the City Manager to execute a ground lease
extension with SBA Communications Corporation on the Schatulga Road tower lease
GA09926-A for 2 additional 5 year terms.
A RESOLUTION
NO. _____
A RESOLUTION AUTHORIZING TO ENTER INTO A GROUND LEASE EXTENSION AGREEMENT WITH
SBA COMMUNICATIONS CORPORATION ON THE SCHATULGA ROAD TOWER LEASE GA09926-A FOR
TWO (2) ADDITIONAL FIVE (5) YEAR TERMS.
WHEREAS, the city of Columbus has leased space on the Schatulga Road tower to
SBA Communications (formerly Foresite, LLC) since 2004 (Resolution #508-03)
consisting of four (4) five year terms; and,
WHEREAS, this tower is located behind the City's Heavy Equipment Office on
Schatulga Road; and,
WHEREAS, the current lease provides for a 15% increase in the amount of the
lease payment for every five-year term. The annual lease payment is now
$13,800 which will increase to $15,870 and $18,250 in 2019; and,
WHEREAS, SBA Communications desires to extend the lease for two additional five
year terms to bring the total remaining lease term to 21 years. This extension
will provide carriers with the confidence to make large capital investments in
upgrading their equipment.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:
That the City Manager is hereby authorized to negotiate and execute a ground
lease extension with SBA Communications Corporation on the Schatulga Road tower
lease for two (2) additional five (5) year terms to bring the total remaining
lease term to 21 years with the provision for a 15% increase in rent for each
five year term and for any future terms.
___________
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 __________.
_________________________________
_________________________
Sandra T. Davis, Deputy Clerk of Council ,
Mayor
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