Explanation
BACKGROUND: In July 2007, the City purchased two parcels on Woodrow Avenue as the future site of the Division of Police Property Room and Crime Lab. The parcel containing a fenced parking lot, identified as Franklin County PID 010-003108, included as part of the purchase, a long term (20 year) cell tower lease assumed by the City assumed. The leasehold estate contains a cellular telephone tower operated by New Par, a Delaware partnership, dba Verizon Wireless (Verizon). The tower and associated maintenance and equipment building are situated in a fenced area containing approximately 1,792 square feet located at the southwest corner of the City’s parking lot that have been located on the property since 1994. The City issued a Certificate of Zoning Clearance for the site and tower construction on May 4, 1994.
The existing lease with New Par is in its final term thus necessitating a new lease so Verizon can continue to provide cellular services from this tower. This legislation authorizes the Director of the Department of Finance and Management to execute a new lease with New Par, a Delaware partnership, for the Woodrow Avenue site.
The new lease will be for an initial term of five (5) years and include two renewal terms, each term of five years in length, and include terms that provide the City the ability to place communication equipment from its radio network on the tower at no cost; base rent at $12,000.00 for the first lease year with annual rent escalations of three percent per year over the term of the lease; and revenue sharing with the City at twenty percent of the income from leases to subtenants should Verizon allow other tenants to locate on the tower.
Fiscal Impact: Base rent for the first lease year will be $12,000.00.
Title
To authorize the Director of the Department of Finance and Management to execute a Lease Agreement between the City and New Par, dba Verizon Wireless.
Body
WHEREAS, as part of the City’s purchase of two...
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