HomeMy WebLinkAbout5F Sprint Cedarwood St Lease Report
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: FEBRUARY 27,2017
AGENDA #: 5F
PREPARED BY: NICK ZURBEY, PUBLIC WORKS TECHNICIAN
PRESENTED BY: FRANK BOYLES, CITY MANAGER
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE
MAYOR AND CITY MANAGER TO EXECUTE A COMMUNICATION
FACILITIES LEASE AGREEMENT WITH SPRINT AT THE
CEDARWOOD STREET WATER TOWER PROPERTY
DISCUSSION: Introduction
The purpose of this agenda item is to consider executing Communication
Facilities Lease Agreement with Sprint at the Cedarwood Street Water
Tower property (“Agreement”) for a term of 5 years with options to renew
for two additional 5 year terms (15 year total).
History
The City and Sprint are currently parties to a Water Tower Antenna
Agreement relating to installation of communications equipment on the
Cedarwood St water tower that includes mounting of antenna and other
equipment on the water tower, leased ground space for an equipment
shelter and easements for access and underground utilities. They are also
parties to a similar agreement at the other water tower property. The
original agreement for the Cedarwood Street location was entered into on
February 18, 1997.
Current Circumstances
Sprint’s current lease expired on December 31, 2016 and they wish to
continue to lease space at the Cedarwood St water tower property. The
City Attorney and Staff have researched and developed a new lease
agreement. However, Sprint was unable to execute the lease prior to
expiration. So, a two month temporary extension was executed by both
parties. This allowed for adequate time for Sprint to produce the necessary
exhibits needed and have the new lease executed by Sprint. Double rent at
the current rent rate was collected for the temporary extension but half of it
will be credited back towards the 2017 rent upon execution of the lease.
The new lease is dated to January 1, 2017 to have an unbroken leasing of
space at the Cedarwood Street water tower property.
Included along with the partially executed agreement are exhibits that show
the current configuration of antenna and equipment along and the
descriptions of the lease space and easements.
2
Conclusion
The City Attorney reviewed the information and prepared the Agreement to
continue to lease space on the water tower to Sprint.
ISSUES: The City holds several lease agreements with Communication Companies
to allow use of the City’s water towers to mount antenna with ground
equipment shelters. In the coming years many of these leases will expire.
A new standard lease was developed by the City Attorney and Staff to be
used as these leases expire.
FINANCIAL
IMPACT:
The rent amount was $24,424.23 but after market research for rent in the
region revealed it was undervalued a rent amount of $29,500 annually with
a 5% annual escalator was proposed and accepted by Spint.
ALTERNATIVES: 1. Approval of a resolution as part of the consent agenda authorizing the
Mayor and City Manager to execute the Communication Facilities Lease
Agreement with Sprint at the Cedarwood Street Water Tower.
2. Motion and second to remove this item from the consent agenda for
additional discussion.
RECOMMENDED
MOTION:
Alternative #1
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 17-___
A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A
COMMUNICATION FACILITIES LEASE AGREEMENT WITH SPRINT AT THE CEDARWOOD
STREET WATER TOWER PROPERTY
Motion By: Second By:
WHEREAS, Various cellular companies have located their antennae equipment on City property
and water towers; and
WHEREAS, The public safety, health and welfare is served when cell phone coverage is
uniform and unbroken; and
WHEREAS, The City and Sprint have been parties to a Water Tower Antenna Agreement
relating to City property and the Cedarwood Street water tower located at 5560
Cedarwood St Street, Prior Lake Minnesota, 55372 (Sprint site ID MS03XC159)
since February 18, 1997; and
WHEREAS, Sprint’s current lease expired on December 31, 2016; and
WHEREAS, Sprint desires to continue to lease space at the water tower property to which
includes mounting of antenna and other supplemental equipment on the water
tower, leased ground space for an equipment shelter and easements for access
and underground utilities; and
WHEREAS, The City Attorney and City Staff have developed an “Agreement”; and
WHEREAS, Sprint has executed said Agreement
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City Council hereby approves the “Communication Facilities Lease Agreement with
Sprint at The Cedarwood Street Water Tower Property” prepared by the City Attorney and
City Staff.
3. The Mayor and City Manager are hereby authorized to execute the “Communication
Facilities Lease Agreement with Sprint at the Cedarwood Street Water Tower Property” on
behalf of the City.
Passed and adopted by the Prior Lake City Council this 27th day of February, 2017
C:\Users\aschroeder\Desktop\17-XXX Sprint Cedarwood St Lease.docx 2
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager