2022.06.14 CC Packet - Complete - Laserfiche WebLink

Home Browse Search

REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Consider Approval of a Lease Termination Agreement with Sprint Spectrum LLC DEPARTMENT HEAD’S APPROVAL: CITY MANAGER’S APPROVAL: No comments to supplement this report ___ Comments attached ___ 15.99 Deadline: None Recommendations:  Approval of the lease termination as drafted, reviewed, and approved by our attorney at Kennedy & Graven who advises us on tower leases History:  The original Nextel lease went into effect on 10/4/96  Lease Amendment #1 went into effect on 6/16/98  Lease Amendment #2 amended the lease terms starting on 11/1/16, and extended the lease for an additional 62 months (i.e. to the end of 2021).  In late 2021, the City was notified that the lease would not be renewed. Over the years, Nextel had been purchased by Sprint, and recently Sprint became part of T-Mobile. As T-Mobile already has installations on separate leases in the City, this lease became unnecessary. Financial Impact:  Positive. The applicant has satisfied all prior payments to fulfill the lease. This lease termination agreement ties up final details regarding equipment removal and transfer of the company’s existing equipment shed to the City. As part of the transfer, the applicant has agreed to pay the City a lump sum fee of $8,250 to cover maintenance and repainting costs for the shed. Public Works arrived at that number after getting bids for the needed work. Transfer of the renovated shed to the City ownership will position the site well for a future lease of space on the water tower at 803 5th Avenue NW. Summary: T-Mobile opted to not renew an old lease on the water tower at 803 5th Avenue NW that expired at the end of 2021 as they have other locations meeting their needs within the City. This lease termination agreement addresses outstanding issues associated with final equipment removal. Agenda Section: VI Item: 4 Report Date: 6/1/22 Council Meeting Date: 6/14/22