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The Planning Commission reviewed the land use applications at their December 2009 meeting <br /> • and has recommended approval to the City Council. The City Council is scheduled to review the <br /> proposal at their March 8, 2010, meeting. If the land use applications are approved, the City <br /> would then begin review of a business subsidy application for the TIF to determine if and how <br /> much TIF is justified for the project. SCI has a purchase agreement for 1296 County Road F but <br /> their purchase is contingent up the financing and land use approvals. <br /> While the communications tower is part of the property that SCI would purchase, they have <br /> stated that they are not in the business of owning or managing communication towers. During <br /> discussions with SCI, the idea of the City purchasing the tower from SCI was proposed. The <br /> tower and underlying property is already proposed to subdivided from the housing project due to <br /> financing rqeuriements. The concept was discussed at the February 22, 2010, City Council <br /> worksession, and the Council directed staff to explore the concept and seek input from the <br /> Financial Planning and Analysis Committee. <br /> The Communications Tower <br /> An independent structural analysis of the tower was conducted by Ulteig Engineering in January <br /> 2010. The report indicated that the tower is in good condition and has been properly maintained. <br /> According to the engineer, these types of towers do not have defined lifetimes, but this tower can <br /> be expected to remain operating for many years to come. <br /> • There are currently three tenants on the tower: Verizon Wireless has 18 antennas for cellular <br /> services, American Messaging has two antennas for pager services, and Nextera has one antenna <br /> for business interne services. There are nine antennas that are no longer being used and can be <br /> removed from the tower. Once the nonfunctional antennas are removed, there is capacity for <br /> additional tenants. <br /> Proposal Review <br /> The proposal is attached. Staff has begun research the following items for the proposal review: <br /> o Insurance requirements and liability; <br /> o Maintenance costs; <br /> o Utility costs; and. <br /> o Management responsibilities; <br /> The leases and revenue are considered confidential information by the Reiling Estate and cannot <br /> be released with this memorandum. Since the lease provisions and revenue information are <br /> paramount to making any informed decision, staff is working with SCI to obtain that <br /> information. The leases will include such items as the annual payment, annual adjustment rates, <br /> term lengths, and termination provisions. <br /> City of Arden Hills <br /> • C:lUsers joe.rueblAppData'Local,MicrosoftWindowslTemporary Internet Files1Content.Outlook1X8RIDU3K103119111-FPAC Memo-Reiling <br /> Tower Purchase.doc <br /> Page 2 of 3 <br />