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 North Port Road and Drainage District and 1 Source Towers II, LLC for Construction of a Cellular Tower Located at 3195 Chickasaw Avenue, North Port, Florida 34288.
Recommended Action
Option 1: Approve the revised Land Lease Agreement by and between the North Port Road and Drainage District and 1 Source Towers II, LLC for construction of a cellular tower located at 3195 Chickasaw Avenue, North Port, Florida, 34288.
City Commission Options
Option 1: Approve the revised Land Lease Agreement by and between the North Port Road and Drainage District and 1 Source Towers II, LLC for construction of a cellular tower located at 3195 Chickasaw Avenue, North Port, Florida, 34288.
• 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 District.
• Cons: Approval accepts revised financial terms that reduce the District's monthly lease from that previously approved, although the District will receive an increased revenue share from additional broadband tenants.
Option 2: Deny the revised Land Lease Agreement by and between the North Port Road and Drainage District, and 1 Source Towers II, LLC for construction of a cellular tower located at located at 3195 Chickasaw Avenue North Port, Florida, 34288.
• Pros: Avoids accepting the proposed reduction in the District’s monthly lease revenue under the revised agreement.
• 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 District.
Background Information
The City Commission previously approved construction of a cellular tower and the associated Land Lease Agreement between the North Port Road and Drainage District and 1 Source Towers II, LLC on February 27, 2024.
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 District's monthly lease revenue from $1,833.33 to $1,200.00.
The Land Lease Agreement will provide approximately 6,500 square feet 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 thirty (30) days prior to the end of the current term.
Beginning on the commencement date, the District will receive $1,200.00 in monthly rent, plus $200.00 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 North Port Road and Drainage District and 1 Source Towers II, LLC has been reviewed by the City Attorney’s Office and is legally correct as to form.
The revised Land Lease Agreement by and between the North Port Road and Drainage District and 1 Source Towers II, LLC was submitted to the City Clerk’s Office on August 31, 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 $200.00 each month per company. Funding will be added to the 001-0000-362.00-00 account.
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