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PRESENTATION ITEM — 4D <br />,-ARZEN HILLS <br />MEMORANDUM <br />DATE: September 18, 2023 <br />TO: Honorable Mayor and City Councilmembers <br />Dave Perrault, City Administrator <br />FROM: David Swearingen, P.E. Public Works Director / City Engineer <br />SUBJECT: T-Mobile South Tower Site Use Lease Agreement Amendment (Antenna Lease) <br />Budgeted Amount: Actual Amount: Funding Source: <br />$20,987.50 (2024) $20,987.50 (2024) General Fund <br />Council Should Consider <br />Motion to approve, table, or deny the following: <br />• First Amendment to Site Use Agreement for T-Mobile. <br />Background <br />The City of Arden Hills entered into a Site Use Lease Agreement (Attachment A) with T-Mobile <br />Central LLC (previously referred to as APT) on April 27, 2000 for cell antenna equipment <br />located at the City's South Water Tower at 1230 Red Fox Road. The agreement established a <br />monthly lease rate of $1,000, with an adjustment of 15 percent every 5 years. The agreement <br />expires at the end of April 2025. <br />T-Mobile's real estate agent contacted the City to request renegotiation of the current lease at the <br />South Water Tower. T-Mobile refused to renew the agreement at the base rent as it will be in <br />2025 and has provided two proposals as seen in the tables below. The current lease rate is <br />extended in the table for comparison. <br />The City Attorney reviewed the amendment document (Attachment A) with T-Mobile and had <br />no concerns with the language as written. The dollar amount shown in Attachment A was T- <br />Mobile's original ask and should be ignored, the proposed base rents for negotiation are shown <br />below in the tables. The proposed lease agreement amendment would extend for 25 years to <br />2050. <br />Page 1 of 3 <br />