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<br /> <br /> <br />REQUEST FOR CITY COUNCIL CONSIDERATION <br /> <br />ITEM DESCRIPTION: Authorization for the Mayor and City Manager to enter in a Site Lease <br />Agreement by and between the City of New Brighton and T-Mobile Central LLC regarding <br />extending T-Mobile’s lease terms for their existing telecommunications equipment on the water <br />tower located at 675 Forestdale Road. <br />DEPARTMENT HEAD’S APPROVAL: Craig Schlichting, Director of Community Assets & <br />Development <br /> <br />CITY MANAGER APPROVAL: <br /> <br /> <br />No comments to supplement this report _______ Comments attached ______ <br /> <br />Recommendation: Authorize the Mayor and City Manager to execute the Site Lease <br />Agreement. <br /> <br />Legislative History: June 10, 1996: The City Council authorized the Mayor and City Manager <br />to execute the current lease, which commenced on September 1, 1996. This lease provided three <br />additional, five year terms that have been exercised and are now set to expire on December 31, <br />2016. <br /> <br />Financial Impact: The 2016 annual lease rate was $24,404. This amount was generated over <br />the life of the lease, which had a 4% annual rent inflator (or CPI, whichever was greater). The <br />initial lease term in 1996 had an annual lease rate of $11,000. <br /> <br />Under the first year of the new lease (2017), the annual lease payment will be $25,379.76. The <br />annual lease rate will increase 4% every year thereafter and be due on January 1st. <br /> <br />Explanation: T-Mobile has telecommunications equipment mounted on top of the water tower <br />located at 675 Forest Dale Road. In addition to this tower equipment, a shelter exists on the <br />ground level storing controls for their tower equipment. T-Mobile makes annual lease payments <br />to the City for rights to mount equipment on the tower and for ground space to accommodate <br />their shelter and controls. The original lease was executed in 1996 and it set to expire at the end <br />of 2016. T-Mobile wishes to continue at this site and contacted staff in 2015 to start negotiating <br />a lease extension. <br /> <br />Rather than execute an extension of the current lease, staff worked with the City Attorney to <br />draft a new lease. A new lease was more desirable as some of the language was outdated and <br />didn’t address issues that have arisen since original execution in 1996. This mainly relates to <br />AGENDA SECTION: Consent <br />REPORT DATE: 11/2/2016 <br />MEETING DATE: 11/9/2016