HomeMy WebLinkAbout05(G) - Resolution Approving Lease Agreement with AT&T at the Tower Street Water Tower ReportITEM: 5GCITYCOUNCILAGENDAREPORT
MEETING DATE: August 25, 2026
PREPARED BY: Nick Zurbey, GIS Coordinator
PRESENTED BY: Nick Monserud, Public Works Director/City Engineer
AGENDA ITEM: Resolution Approving Lease Agreement with AT&T at the Tower
Street Water Tower
RECOMMENDED ACTION:
Adopt aresolution authorizing the Mayor and City Manager to execute aCommunication Facilities
Lease Agreement with AT&T at the Tower Street Water Tower.
BACKGROUND:
The purpose of this agenda item is to consider executing a Communication Facilities Lease
Agreement with AT&Tfor use of the Tower Street Water Tower for a term of 5years with the
option for AT&T to renew for two additional 5-year terms (15 years total).
The City and AT&T are parties to a Water Tower Antennae Agreement relating to the installation
of communications antennas on the Tower Street Water Tower and leased space for a ground
shelter on the property located at 4741 Tower Street SE. An original agreement was entered into
October 30, 2006 and amended February 8, 2016 (Amendment 1), December 4, 2017
Amendment 2), January 22, 2017 (Amendment 3), July 20, 2020 (Amendment 4), January 3,
2022 (Amendment 5), August 1, 2022 (Amendment 6), June 25, 2024 (Amendment 7), January
28, 2025 (Amendment 8) and April 14, 2026 (Amendment 9).
Due to the changing nature oftechnology 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. Inthe 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 tobe reviewed to determine whether an amendment isneeded
and ifchanges are significant enough to warrant a rent increase for any additional weight or space
being occupied by the tenant.
The City Attorney and Staff have negotiated the terms of the new lease agreement with AT&T,
and AT&T has executed said agreement.
FINANCIAL IMPACT:
The annual rent will be $45,957.45 with a 3% annual escalator.
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 with
AT&T for the Tower Street Water Tower.
City ofPrior Lake | 4646 Dakota Street SE | Prior Lake MN 55372
Item 5G
Page | 2
2. Motion and second to remove this item from the consent agenda for additional
discussion.
ATTACHMENTS:
1. Resolution
2. AT&T Tower St Lease Agreement - Partial
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 26-
A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A
COMMUNICATION FACILITIES LEASE AGREEMENT WITH AT&T FOR THE TOWER
STREET WATER TOWER PROPERTY
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 New Cingular Wireless PCS, LLC, a Delaware limited liability
company (“AT&T”) are parties to a Water Tower Antennae Agreement relating
to City property and the Tower St Water Tower located at 4741 Tower Street
SE, Prior Lake, Minnesota 55372 (AT&T site ID 10111975); and
WHEREAS, AT&T’s current lease expires on August 31, 2026; and
WHEREAS, AT&Tdesires tocontinue to lease sapce at the water tower property, which
includes attaching antenna and other equipment on the water tower, leased
ground space for an equipment shelter and generator, and easements for
access and utilities; and
WHEREAS, the City Attorney and City Staff have negotiated and prepared a new lease
agreement with AT&T; and
WHEREAS, AT&Thas 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”
prepared by the City Attorney and City Staff.
3. The Mayor and City Manager are hereby authorized to execute the “Communication
Facilities Lease Agreement” on behalf of the City.
Passed and adopted by the Prior Lake City Council this 25th day ofAugust 2026.
VOTE Briggs Braid Churchill Lake Hellier
Aye
Nay
Abstain
Absent
Jason Wedel, City Manager
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