Title
AN ORDINANCE AUTHORIZING THE EXECUTION OF THE FIRST AMENDMENT TO A REAL PROPERTY AND MONOPOLE SITE LEASE AGREEMENT BY AND BETWEEN THE CITY OF LEE’S SUMMIT AND T-MOBILE CENTRAL, LLC EXTENDING THE LEASE TERM AND INCREASING THE ANNUAL RENTAL PAYMENT. (F&BC 8-7-17)
Body
Issue/Request:
AN ORDINANCE AUTHORIZING THE EXECUTION OF THE FIRST AMENDMENT TO A REAL PROPERTY AND MONOPOLE SITE LEASE AGREEMENT BY AND BETWEEN THE CITY OF LEE’S SUMMIT AND T-MOBILE CENTRAL, LLC EXTENDING THE LEASE TERM AND INCREASING THE ANNUAL RENTAL PAYMENT.
Key Issues:
The City has been contacted by representatives of T-Mobile regarding their interest to extend the term of the lease for space on the monopole located adjacent to Fire Department Headquarters. The attached amendment and contract provide for the terms and conditions of T-Mobile's lease of space on the City's tower. The amendment provides for up to four (4) extensions of five (5) years each and an increase in rent from $24,100 to $26,000 per year with increases of 3% upon each renewal.
Proposed Council Motion:
FIRST MOTION: I move for second reading of AN ORDINANCE AUTHORIZING THE EXECUTION OF THE FIRST AMENDMENT TO A REAL PROPERTY AND MONOPOLE SITE LEASE AGREEMENT BY AND BETWEEN THE CITY OF LEE’S SUMMIT AND T-MOBILE CENTRAL, LLC EXTENDING THE LEASE TERM AND INCREASING THE ANNUAL RENTAL PAYMENT.
SECOND MOTION: I move for adoption of AN ORDINANCE AUTHORIZING THE EXECUTION OF THE FIRST AMENDMENT TO A REAL PROPERTY AND MONOPOLE SITE LEASE AGREEMENT BY AND BETWEEN THE CITY OF LEE’S SUMMIT AND T-MOBILE CENTRAL, LLC EXTENDING THE LEASE TERM AND INCREASING THE ANNUAL RENTAL PAYMENT.
Background:
This agreement has been in place since April, 1997, with an original annual rent amount of $15,000. Representatives of T-Mobile requested extension of the lease for up to an additional four terms of five years each subject to renewal. An increase in the annual rent amount was negotiated from $24,100 to $26,000 with 3% increases upon each renewal. The use of the site is not exclusive to T-Mobile.
Impact/Analysis:
The annual rent is currently $24,100 and will be increased to $26,000 with 3% increases upon each renewal.
Presenter
Presenter: Bette Wordelman, Deputy Finance Director
Recommendation
Recommendation: Staff recommends approval of AN ORDINANCE AUTHORIZING THE EXECUTION OF THE FIRST AMENDMENT TO A REAL PROPERTY AND MONOPOLE SITE LEASE AGREEMENT BY AND BETWEEN THE CITY OF LEE’S SUMMIT AND T-MOBILE CENTRAL, LLC EXTENDING THE LEASE TERM AND INCREASING THE ANNUAL RENTAL PAYMENT
Committee Recommendation
Committee Recommendation: Motion by Councilmember Faith, seconded by Councilmember Mosby to recommend this Ordinance for approval to full Council. The vote was unanimous.