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Department Approval <br />��. .�: �� <br />Item Description <br />BACKGROUND <br />��i <br />� <br />REQUEST FOR COUNCIL ACTION <br />Date: 04/12/2010 <br />Item No.: �3/ i <br />City Manager Approval <br />Approve Lease Agreement with Clear Wireless, LLC ("Clearwire") for Leased <br />Space on the North City Campus Communications Tower <br />Earlier this year, the City Council approved the installation of a second communications tower (the `North <br />City Hall Campus Tower') on the City Hall campus. It is expected that this tower will be installed in the <br />next few months. <br />Over the past several months, City Staff has been in discussions with Clearwire, a wireless data service <br />provider which desires to lease space on the new tower. Clearwire has previously agreed to lease space on <br />the Fairview Avenue/Fire Station #2 tower, and the Alta Vista (Reservoir Woods Park) tower. <br />Clear Wireless, LLC operates as Clearwire, a wireless broadband Internet service provider for fixed and <br />mobile Internet access in nine states (23 markets nationwide). Clearwire is expanding to the Twin Cities <br />area and is actively seeking communication tower sites throughout the metropolitan area for their radio <br />equipment. Clearwire is not a wireless telephone service provider like Sprint, Nextel, Verizon, AT&T or T- <br />Mobile. The amount of ground space required for the radio equipment and the space required for the <br />antennas on the tower is considerably less than that of a cellular telephone company. <br />The attached lease agreement has been approved by Clearwire Officials. <br />Discussion Items <br />The lease agreement with Clearwire is consistent with prior wireless lease agreements, with a notable <br />exception for the initial rent abatement period. The lease calls for the following: <br />❖ Five year initial term, commencing upon the date Clearwire begins construction in mid 2010. <br />❖ Clearwire has the right to renew the lease for five (5 ) additional five-year terms subj ect to terms of <br />the original lease. <br />❖ Clearwire shall pay the City annual rent of $19,008 per year, with automatic increases of 3% per <br />annum. The lease amounts reflect the differences in the amount of antennae and ground <br />equipment compared to traditional wireless service providers. <br />❖ Clearwire shall pay for the costs of improvements and installation for the tower and shall be <br />entitled to receive rent abatement in the same amount as the prescribed annual rent until such time <br />that the tower is paid off. <br />Page 1 of 2 <br />