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Item 7B, T-Mobile Cell Antennas
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Item 7B, T-Mobile Cell Antennas
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5/22/2008 4:31:40 PM
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5/22/2008 4:29:48 PM
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T-Mobile Cell Antennas
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Agenda Item
Date
5/27/2008
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<br />Although the T -Mobile legal department has not finalized the latest draft, additional significant <br />changes to the lease are not expected. However, the yearly lease rate and yearly rate of increase <br />have not been determined. T-Mobile is proposing a lease rate of$1,500 per month ($18,000 per <br />year) with a yearly increase of three percent. The first term of the lease is for five years, and T- <br />Mobile can extend the lease for three additional five year terms subject to the provisions in the <br />lease. Such lease extensions are common in the other leases in Arden HiIls and in other cities. <br /> <br />A representative for T -Mobile will be at the City Council meeting to discuss the proposed rate, <br />yearly increase, and terms. If a rental rate and yearly increase can be finalized at the meeting, <br />the Council Can authorize Staff to complete the lease language review and execute the contract <br />based upon the negotiated rental rates and increases. If there are any significant changes to the <br />draft lease after the Council review, those changes would be brought back to the City Council for <br />approval prior to executing the lease. Alternatively, the Council Can require the fuIllease to <br />come back to the Council prior to execution. <br /> <br />The conditional use permit is contingent upon approval of the lease, and the lease is contingent <br />upon the zoning code amendment that will be presented to the Planning Commission in June. <br /> <br />Lease Comparison <br /> <br />For comparison, the existing ceIlular antenna leases on the City water towers are as foIlows: <br /> <br /> 2008 Arden Hills Cell Lease Information for City Water Towers <br />Company 2008 Rate Increase Contract Location <br />Monthly Yearly Rate Frequency Approved Expires <br />Snrint $1,150.00 $13,800.00 15% Everv 5 years 2000 2025 South <br />Nextel $991.00 $11,892.00 15% Everv 5 years 1995 2020 South <br />AT&T $1,355.79 $16,269.48 CPI Everv 5 years 1989 2014 North <br />T-Mobile 1 $1,150.00 $13,800.00 15% Every 5 years 2000 2025 South <br /> <br />The proposed three percent yearly increase from T -Mobile results in a higher rental rate than a <br />15 percent increase every five years. For example, by year six of the lease, the $18,000 base rent <br />would have increased to $20,866.93 with a three percent yearly increase or to $20,700 with a 15 <br />percent increase every five years. Although there is not a standard yearly increase in the <br />adjacent communities, COmmon increases range from 3-5 percent per year or a 15 percent <br />increase every five years. <br /> <br />Although height, location, roadways, number of antennas, and population density Can impact <br />rental rates, the foIlowing rates and heights were reported by adjacent communities in 2007: <br /> <br />\\Metro~inet.us\ardenhillslPlanninglPlanning Cases\2008\08~007 T~Mobile CUP (PC Approved)\052708 - CC Report ~ T~mobile CUP.doc <br />Page 3 of6 <br />
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