CCP 03-25-2002 - Laserfiche WebLink

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. '...,1 e e e ~ ~ EN HILLS MEMORANDUM DATE: March 22, 2002 TO: Joe Lynch, City Administrator FROM: Terry Post, City Accountant~ SUBJECT: AT&T Wireless Antenna Lease Amendment (in Conjunction with Plarming Case No. 02-01) Backl!round The City of Arden Hills entered into a Water Tower Antenna Lease Agreement with Minnesota Cellular Telephone Company on April 10, 1989, for up to six DB833F antennas or equivalent, up to two microwave dishes up to 120 inches in diameter and a 12' x 28' equipment building. The lease term was five years plus four additional five year terms with automatic renewals except for the option of the landlord (The City of Arden Hills) during the third renewal term or any successive renewal term thereafter, to notify tenant, at least thirty (30) days prior to the end of such term, of Landlord's intent to terminate the lease at the end of such term, Base rent began at $600 per month with cost of living index (CRI) escalators capped at a maximum of 4.0% per year at each term anniversary. Current Status The lease is in the second five year renewal term (April 10, 1999 through April 9, 2005) at a current monthly rent of $792.78. This monthly rent amount is significantly below that being paid by other water tower tenants (i.e" Nextel at $862.50/month; Sprint at $I,OOO.OO/month; Voicestream at $1,OOO.OO/month). Staff Review Staff reviewed the original lease amendment submitted by the plarming applicant and rejected it out of hand ($25.00 per antenna per month increase). Staff cOlliltered by recommending that the additional three (3) antennas being proposed be placed on the same rent level as the existing antennas ($792.78/6 = $132.13 rounded up to $135.00 per antenna per month), The Water Tower Lease Amendment received by fax today reflects the staff recommended rent increase ($405,00 per month).