TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approval of Construction of a New Cellular Tower, Tower Lease Agreement, and Land Lease Agreement Between North Port Road and Drainage District and 1 Source Towers II, LLC Located at 3195 Chickasaw Avenue.
Recommended Action
Approve construction of a new cellular tower, Tower Lease Agreement, and Land Lease Agreement between North Port Road and Drainage District and 1 Source Towers II, LLC located at 3195 Chickasaw Avenue.
Background Information
Due to the extensive growth of the City of North Port, 1 Source Towers II, LLC, managing partner with Verizon Wireless, would like to construct a new cellular tower at 3195 Chickasaw Avenue. This tower would improve City-wide wireless services and will have space dedicated for Police and Fire Rescue Departments communications equipment.
The Land Lease Agreement will provide approximately 6,500 sf of space for the construction of the tower and ingress/egress access. This Agreement has an initial term of five (5) years and will automatically be extended for set terms unless terminated via written notice provided a minimum of six (6) months prior to the end of the current term. In addition, if the tower is not constructed within twenty-four (24) months from the Agreement effective date, the City may terminate the Agreement upon its discretion without penalty.
Through the Land Lease Agreement, the City will receive $1,833.33 per month rent following the commencement date of the Agreement. In addition, the City will receive $200.00 per month for each broadband tenant that occupies the tower. 1 Source Towers II, LLC anticipates that there will be four (4) tenants.
The Tower Lease Agreement dedicates tower space to the City for communication equipment. Similar to the Land Lease Agreement, the Tower Lease Agreement has an initial term of five (5) years and will automatically be extended for set terms unless terminated via written notice provided a minimum of six (6) months prior to the end of the current term.
Through the Tower Lease Agreement, the City will be required to pay for its electrical service use and $100.00 per month rent, $1,200.00 annually, for the tower space following the commencement date of the Agreement.
This request is being presented to the Commission acting as the Governing Body for the Road and Drainage District for consideration as the property is owned by the Road and Drainage District.
The Tower Lease Agreement, and Land Lease Agreement between North Port Road and Drainage District and 1 Source Towers II, LLC have been reviewed by the City Attorney and are legally correct as to form.
Strategic Plan
Efficient and Effective Government
Financial Impact
The Land Lease Agreement provides a monthly revenue of $1,833.33 for a term of five years with a 2.5%-year increase. With an additional annual lease fee of $2,400.00 for each broadband tenant, beginning with the second subtenant, that will be paid in monthly installments of $200.00 for a term of five years. Funding will be added to the 107-0000-362.00-00 account for all revenues received in the Road and Drainage District Budget.
Funding in the amount of $1,200.00 is available in the Fiscal Year 2024 budget, as reflected in account number 001-0710-516-44.00 for the Tower Lease Agreement. This will be a term of five years with a 2.0% yearly increase.
Procurement
Not applicable.
Attachments:
1. Tower Lease
2. Land Lease Agreement
3. Map
4. Florida Division of Corporations Document
Prepared by: Rita Pires, Real Estate Coordinator
Department Director: Chuck Speake, Director of Public Works