TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approval of the Revised Land Lease Agreement By and Between the City of North Port, Florida, and 1 Source Towers II, LLC for Construction of a Cellular Tower Located at 11820 Manasota Beach Road, Venice, Florida, 34293.
Recommended Action
Option 1: Approval of the revised Land Lease Agreement by and between the City of North Port, Florida, and 1 Source Towers II, LLC for construction of a cellular tower located at 11820 Manasota Beach Road, Venice, Florida, 34293.
City Commission Options
Option 1: Approve the revised Land Lease Agreement by and between the City of North Port, Florida, and 1 Source Towers II, LLC for construction of a cellular tower located at 11820 Manasota Beach Road, Venice, Florida, 34293.
• Pros: Approval allows the cellular tower project to move forward in compliance with the updated Unified Land Development Code (ULDC) requirements. It also generates lease revenue for the City.
• Cons: Approval accepts revised financial terms that reduce the City's monthly lease from that previously approved, although the City will receive an increased revenue share from additional broadband tenants.
Option 2: Deny the revised Land Lease Agreement by and between the City of North Port, Florida, and 1 Source Towers II, LLC.
• Pros: Provides additional time for review and protects the City from entering into amendments that may not adequately address its interests.
• Cons: Denial prevents the revised Land Lease Agreement from taking effect, delaying or preventing construction of the cellular tower and the associated lease revenue to the City.
Background Information
The City Commission previously approved construction of a cellular tower and the associated Land Lease Agreement between the City of North Port, Florida, and 1 Source Towers II, LLC on January 14, 2025.
Following Commission approval, amendments to the Unified Land Development Code (ULDC) affected the proposed project and required revisions to the previously approved Land Lease Agreement before construction could proceed. Compliance with the updated ULDC requirements increased the anticipated cost of the project to 1 Source Towers II, LLC. As a result, the parties negotiated revisions to certain financial provisions of the Agreement to accommodate the additional project costs while allowing the project to move forward.
The revised Land Lease Agreement maintains the overall project structure, including construction of the cellular tower, lease terms, renewal provisions, and annual rent escalations. The primary revisions reduce the City's monthly lease revenue from $1,833.33 to $1,200.00 while increasing the City's revenue share for each additional broadband tenant from $200.00 to $250.00 per month.
The Land Lease Agreement provides approximately 6,500 square feet of space for the construction of the cellular tower and associated ingress/egress access. The Agreement has an initial term of five (5) years and automatically renews for successive terms unless terminated by either party through written notice provided a minimum of thirty (30) days prior to the expiration of the then-current term. If construction of the tower is not completed within twenty-four (24) months of the effective date, the City may terminate the Agreement at its discretion without penalty.
Beginning on the commencement date, the City will receive $1,200.00 in monthly rent, plus $250.00 per month for each additional broadband tenant occupying the tower. 1 Source Towers II, LLC anticipates the tower will accommodate four (4) tenants.
The revised Land Lease Agreement by and between the City of North Port, Florida, and 1 Source Towers II, LLC for construction of a cellular tower located at 11820 Manasota Beach Road, Venice, Florida, 34293 has been reviewed by the City Attorney and is legally correct as to form.
The revised Land Lease Agreement by and between the City of North Port, Florida, and 1 Source Towers II, LLC for construction of a cellular tower located at 11820 Manasota Beach Road, Venice, Florida, 34293, LLC was submitted to the City Clerk’s Office on June 26, 2026, for signature, subject to City Commission approval.
Strategic Plan
Infrastructure & Facilities Integrity
Financial Impact
The Land Lease Agreement provides a monthly revenue of $1,200.00 for a term of five years with a 2.5% increase annually starting the second year. The Land Lease Agreement also provides additional annual lease fees for each additional broadband tenant company, in the amount of $250.00 each month per company. Lease revenues will be deposited into account number 420-0000-369.90-00.
Procurement
Not applicable.
Attachments:
1. Revised Land Lease Agreement
2. Map
Prepared by: Rita Puglise, Real Estate Coordinator
Department Director: Chuck Speake, Director of Public Works