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MEMORANDUM <br />DATE: <br />March 30, 2009 <br />TO: <br /> Mayor & City Council <br />FROM: <br />James Lehnhoff, Community Development Director <br />SUBJECT: Planning Case #: 09-004 <br />Water Tower Property Ground Lease <br />TTM Operating Corporation, Inc <br />1230 Red Fox Road <br />Request <br />Approve the lease agreement between TTM Operating Corporation, Inc and the City of Arden <br />Hills with a yearly lease rate of $2,700 and a yearly increase of 3% based on the terms in the <br />Communications Site Lease Agreement in Planning Case 09-004. <br />Background <br />TTM Operating Corporation, Inc (TTM) is proposing to lease 16 square feet of ground space at <br />the City’s water tower site at 1230 Red Fox Road to install communications equipment adjacent <br />to the existing T-Mobile building (Attachment A). TTM is a communications company that <br />provides high speed fiber optic services to cellular towers and is a competitor of Qwest. A fiber <br />optic line and related utilities would be installed from the right-of-way through a non-exclusive <br />utility easement to the proposed equipment box to provide fiber optic service to T-Mobile. This <br />request does not include any antennas or any attachments to the water tower. <br />Attachment A shows a picture of the TTM equipment box and its proposed location at the 1230 <br />Red Fox Road water tower site. The TTM proposal includes just the equipment box circled on <br />the photo. The metal structure behind the equipment box in the picture is not part of the TTM <br />proposal or its equipment. The 16 square foot leased area would include this box and a small <br />area around it to provide work space as shown in the exhibits for the lease. <br />The City has three cellular providers at the Red Fox Road water tower site: Sprint, Nextel, and <br />T-Mobile (Sprint and Nextel are part of the same company but have separate facilities). The <br />TTM proposal would not interfere with the operations of the existing users, the City’s ability to <br />\\Metro-inet.us\ardenhills\Admin\Council\Agendas & Packet Information\2009\03-30-09 Regular\Packet Information\7C - 033009 - CC Report - <br />TTM Red Fox Lease.doc <br />Page 1 of 3 <br /> <br />