HomeMy WebLinkAbout05(E) - Resolution Approving Lease Agreement with Verizon at the Wilds Parkway Civil Defense Tower Report
ITEM: 5E
CITY COUNCIL AGENDA REPORT
MEETING DATE: August 12, 2025
PREPARED BY: Nick Zurbey, GIS Coordinator
PRESENTED BY: Nick Monserud, Public Works Director/City Engineer
AGENDA ITEM: Resolution Approving Lease Agreement with Verizon at the Wilds
Parkway Civil Defense Tower
RECOMMENDED ACTION:
Adopt a resolution authorizing the Mayor and City Manager to execute a Communication Facilities
Lease Agreement with Verizon at the Wilds Parkway Civil Defense Tower.
BACKGROUND:
The purpose of this agenda item is to consider executing a Communication Facilities Lease
Agreement with Verizon for use of the Wilds Parkway Civil Defense Tower for a term of 5 years
with the option for Verizon to renew for two additional 5-year terms (15 years total).
The City and Verizon are parties to a Civil Defense Tower Antennae Agreement relating to the
installation of communications antennas on the Wilds Parkway Civil Defense Tower located at
14998 Wilds Parkway NW. An original agreement was entered into November 15, 2004 and
amended December 8, 2014 (Amendment 1), January 23, 2017 (Amendment 2) and September
7, 2021 (Amendment 3).
Due to the changing nature of technology in the field of wireless communications, the language
and terms of the expiring agreement needed to be changed to address today’s current technology
and be open to meeting potential future changes. In the past, leases allowed for a specific number
of antennas. However, with changes in technology and the rise of data services, there is now a
significant amount of non-antenna equipment being mounted on the towers. As a result,
communications companies will now be leased for the current configuration of equipment
mounted. Any changes will need to be reviewed to determine whether an amendment is needed
and if changes are significant enough to warrant a rent increase for any additional weight or space
being occupied by the tenant.
This lease is unlike the other communication facilities lease agreements that the city holds with
communications companies. At this site, the City owns the tower and leases space on the tower
while the ground space for the shelter is leased from a private property owner. Language is
included in the lease requiring Verizon to have agreements with both the City and private property
owner in order to operate at this site. It has been confirmed that Verizon has executed a new
lease with the private property owners.
Verizon’s current lease expired on March 31, 2025 but an agreement was executed that
temporarily extended their lease for 6 months to September 30, 2025 in order to provide Verizon
time to produce the required exhibits and execute the new lease. During the temporary extension
period, Verizon was charged monthly rent and an additional fee for each month the new lease is
City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372
Item 5E
Page | 2
not executed. The City Attorney and Staff have negotiated the terms of the new lease agreement
with Verizon, and Verizon has executed said agreement.
FINANCIAL IMPACT:
As part of this agreement, a new commencement date of October 1st will be established at which
time the base rent will be $17,317.74 and shall increase by 3% on the annual anniversary of the
commencement date. As consideration for the temporary extension, a payment of $8,406.67 was
made for the 6 month of rent during the temporary extension. As additional consideration, from
April 1, 2025 to the full execution of the new lease, for each month the new lease is not executed,
the Communications Company shall pay the City a fee of $1,400 per month due within 60 days
of the full execution of the new lease. This fee, if fully executed at this time, will amount to $7,000.
ALTERNATIVES:
1. Motion and second as part of the Consent Agenda to adopt a resolution authorizing the
Mayor and City Manager to execute a Communication Facilities Lease Agreement and a
Memorandum of Agreement with Verizon for the Wilds Parkway Civil Defense Tower.
2. Motion and second to remove this item from the Consent Agenda for additional
discussion.
ATTACHMENTS:
1. Resolution
2. Verizon Wilds Pkwy Lease Renewal - Partial
3. Verizon Wilds Pkwy Lease Renewal Memorandum- Partial
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 25-
A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A
LEASE AGREEMENT WITH VERIZON FOR THE WILDS PARKWAY CIVIL DEFENSE
TOWER
Motion By: Second By:
WHEREAS, various cellular companies have located their antenna 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 Cellco Partnership d/b/a Verizon Wireless (“Verizon”) have been
parties to a Civil Defense Tower Antennae Agreement relating to the city
owned civil defense tower located at 14998 Wilds Parkway NW, Prior Lake,
Minnesota 55372 (Verizon site ID MIN BLACKJACK) since November 15,
2004; and
WHEREAS, Verizon and the property owner at 14998 Wilds Parkway NW, Prior Lake
Minnesota 55372 are parties to an agreement to lease ground space for
Verizon’s ground shelter; and
WHEREAS, Verizon’s current lease with the city expired on March 31, 2025 but was
temporarily extended to allow Verizon time to produce the required exhibits
and execute the agreement; and
WHEREAS, Verizon desires to continue to lease space on the tower from the city to attach
antenna and other equipment and lease ground space from the property
owner for their equipment; and
WHEREAS, Verizon has executed an agreement to renew their lease with the property
owner for ground space; and
WHEREAS, the City Attorney and City Staff have developed and negotiated a new lease
agreement with Verizon, and Verizon has executed said agreement; and
WHEREAS, Verizon has executed said Agreement and the Memorandum of 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 “Communications Facilities Lease Agreement”
prepared by the City Attorney and City Staff.
3. The Mayor and City Manager are hereby authorized to execute the “Communications
Facilities Lease Agreement” and the “Memorandum of Agreement” on behalf of the City.
th
Passed and adopted by the Prior Lake City Council this 12 day of August 2025.
VOTE Briggs Braid Churchill Lake Hellier
Aye
☐ ☐ ☐ ☐ ☐
Nay
☐ ☐ ☐ ☐ ☐
Abstain
☐ ☐ ☐ ☐ ☐
Absent
☐ ☐ ☐ ☐ ☐
______________________________
Jason Wedel, City Manager
C:\\Users\\hsimon\\AppData\\Local\\Temp\\Report Attachment - 20250812 Verizon Wilds Pkwy Lease - RES_673677\\Report Attachment - 20250812 Verizon Wilds
Pkwy Lease - RES.docx 2
Prepared by and upon recording
Please retum to:
Ginsberg Jacobs LLC
300 South Wacker Drive
suite 2750
Chicago, Illinois 60606
Attn: Frank J. Boucek, Esq.
(Site Name: MIN Blackjack)
MDG# 5000166799
MEMORANDUM OF AGREEMENT
THIS MEMORANDUM evidences that an Agreement was made and is hereby entered
into by written Agreement effective the day of _ _,202-, between the City of
Prior Lake, Minnesota, a Minnesota municipal corporation (.'City') and Cellco Partnership d/b/a
Verizon Wireless ("Comnunications Company"), the terms, covenants, conditions and
provisions of which are incorporated herein by reference.
Such Agreement provides, in part, that City, for valuable consideration, will lease to
Communications Company a part of that certain property owned by City and described in Exhibit
A attached hereto and incorporated herein for a term of five (5) years commencing on october l,
2025, which term is subject to two additional five (5) year option terms.
IN WITNESS WHEREOF, the parties have executed this Memorandum of Agreement this
day of 202
LANDLORD:
CITY OF PRIOR LAKE
BY:
Kirt Briggs, Mayor
BY:
Jason Wedel, City Manager
EXHIBIT A
TO THE MEMORANDUM OF AGREEMENT
Lot I Block 7, The Wilds, commonly known as 14998 Wilds Parkway NW, Prior Lake, MN
55372.
TENANT:
CELLCO PARTNERSHIP D/B/A VERIZON
STATE OF MINNESOTA
COUNTY OF SCOTT
The foregoing instrument was acknowledged before me this _ day of _,
202_, by Kirt Briggs and by Jason Wedel, the Mayor and City Manager, respectively, of the
City ofPrior Lake, a Minnesota municipal corporation, on behalfofthe corporation and pursuant
to the authority granted by its City Council.
Notary Public
SrArE oF t44; U,h/4r*?- )
CoUNTY olb,'nZ,u)l
-------r-----The fpregoing instrument was acknowledged bef-ore ^, thirldu duy of
2026.by Jo;\^{\tu^ Te@(<'\/ -,tte 5v.D;tr-"10n' ,
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Partnership dlb/a Y erizon Wireless. on behalf oAe limited liability company.
ffi LfuL.7 --r e-4t-t--La-<-/
THIS INSTRUMENT WAS DRAFTED BY:
CAMPBELL KNUTSON, P.A. UJMI
860 Blue Gentian Rd, Suite 290
Eagan, MN 55121
Telephone: (651) 452-5000
Notary Public