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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 04/19/2022 - SECOND READING OF ORDINANCE NO. 042, 2022, AUTHORI Agenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY April 19, 2022 Real Estate Services STAFF Keith Hanson, Real Estate Manager Mike Calhoon, Director of Parks Ryan Malarky, Legal SUBJECT Second Reading of Ordinance No. 042, 2022, Authorizing the Execution of a First Amendment to Site Lease with T-Mobile West, LLC (T-Mobile) at City Park North Ballfield. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on April 5, 2022, authorizes the City Manager to execute an amendment extending the ex isting T-Mobile cell site lease at the ball fields at City Park. The amendment would extend the lease for an additional 5-year term from March 9, 2023, to March 8, 2028. T- Mobile has leased the site from the City since 2001 and the current lease term exp ires March 8, 2023. Annual rent received by the City will increase from $20,736 to $24,000 for the first year of the 5 -year term with 3% increases every year afterwards. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, April 5, 2022 (w/o attachments) (PDF) 2. Ordinance No. 042, 2022 (PDF) Agenda Item 13 Item # 13 Page 1 AGENDA ITEM SUMMARY April 5, 2022 Real Estate Services STAFF Keith Hanson, Real Estate Manager Mike Calhoon, Director of Parks Ryan Malarky, Legal SUBJECT First Reading of Ordinance No. 042, 2022, Authorizing the Execution of a First Amendment to Site Lease with T-Mobile West, LLC (T-Mobile) at City Park North Ballfield. EXECUTIVE SUMMARY The purpose of this item is to authorize the City Manager to execute an amendment extending the existing T- Mobile cell site lease at the ball fields at City Park. The amendment would extend the lease for an additional 5- year term from March 9, 2023, to March 8, 2028. T-Mobile has leased the site from the City since 2001 and the current lease term expires March 8, 2023. Annual rent received by the City will increase from $20,736 to $24,000 for the first year of the 5-year term with 3% increases every year afterwards. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION T-Mobile has leased its cell site at the ball fields at City Park since 2001, when the original Site Lease with Option was executed with T-Mobile’s predecessor, Voicestream. T-Mobile’s cell equipment is situated atop a City- owned light pole that serves the ball fields. Staff has negotiated an amendment to extend the lease for another 5-year term, and annual rent will increase from $20,736 to $24,000 for the first year of the 5-year term, with yearly 3% increases for the remaining term. The rent is within the range of fair market cell site lease rates for similar locations and set-ups without a dedicated cellular equipment tower. T-Mobile may elect to not renew for the 5-year term by providing the City written notice no later than 30 days before the commencement of the new term, but this is not anticipated. T-Mobile will continue to be responsible for all costs associated with the cell site equipment, including maintenance and utilities. There is no cost to the City. CITY FINANCIAL IMPACTS The City would receive $127,419 in rent over the full 5-year term. ATTACHMENTS 1. Location Map (PDF) ATTACHMENT 1 COPY -1- ORDINANCE NO. 042, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE EXECUTION OF A FIRST AMENDMENT TO SITE LEASE WITH T-MOBILE WEST, LLC, OF CITY-OWNED PROPERTY AT CITY PARK NORTH BALLFIELD WHEREAS, the City is the owner of that certain parcel of real property known as the City Park North Ballfield (the “North Ballfield”) located at 137 North Bryan Avenue, Fort Collins, CO 80521; and WHEREAS, on January 2, 2001, the City Council adopted Ordinance No. 193, 2000, authorizing the City to enter into an Option and Lease Agreement with Voicestream PCS II to install a personal communications antenna array on a light pole that Voicestream would provide at the North Ballfield, along with associated easements; and WHEREAS, the City and Voicestream entered into a Site Lease with Option agreement dated February 1, 2001, for an initial term of five years plus three five-year options to renew plus a final renewal period to expire on March 8, 2023 (“Site Lease”); and WHEREAS, T-Mobile West, LLC, (“T-Mobile”) is Voicestream’s successor in interest to the Site Lease; and WHEREAS, T-Mobile has requested that the City grant an extension of the Site Lease for one additional five-year term starting on March 9, 2023, provided that T-Mobile may elect not to renew by providing the City at least thirty days’ notice prior to the commencement of the new term; and WHEREAS, staff has negotiated with T-Mobile proposed lease extension terms and has prepared a First Amendment to Site Lease (“First Amendment”) to extend the lease, together with all necessary easements for access and utilities as were set forth in the Site Lease, by five years; and WHEREAS, a copy of the proposed First Amendment is attached hereto as Exhibit “A” and incorporated herein by reference; and WHEREAS, the First Amendment further provides that T-Mobile shall pay lease payments at a rate of $24,000 per year for the initial year, said rate to be increased annually by three percent (3%); and WHEREAS, the financial benefits to the City of permitting T-Mobile’s continued use are substantial, and the impacts to the City of the same are minimal; and WHEREAS, under Section 23-113 of the City Code, the Council is authorized to lease any and all interests in real property owned in the name of the City, provided that Council first finds that the lease is in the best interests of the City; and -2- WHEREAS, Section 23-111 of the City Code provides that the Council is authorized to sell, convey or otherwise dispose of real property owned by the City, provided the Council first finds by ordinance that any sale or disposition of real property owned by the City is in the best interests of the City of Fort Collins. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby determines that the extension of the term of the Site Lease along with all necessary easements for access and utilities as set forth in the Site Lease for one additional term of five years, is in the best interests of the City. Section 2. That the City Council hereby authorizes the City Manager to enter into the First Amendment to Site Lease with Option with T-Mobile West, LLC for the continued use of the Lease Space, consistent with the terms hereof, along with such other provisions as the City Manager, in consultation with the City Attorney, deems necessary or appropriate to protect the interests of the City. Introduced, considered favorably on first reading, and ordered published this 5th day of April, A.D. 2022, and to be presented for final passage on the 19th day of April, A.D. 2022. ____________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 19th day of April, A.D. 2022. ____________________________________ Mayor ATTEST: _____________________________ City Clerk 1 TMO Site ID: DN03245A 6/29/20 TMO Lease ID: 79407 FIRST AMENDMENT TO SITE LEASE WITH OPTION This First Amendment to Site Lease with Option (the “First Amendment”) is effective as of ____________________ (the “Effective Date”) by and between the City of Fort Collins, Colorado, a Colorado municipal corporation (“Landlord”) and T-Mobile West LLC, a Delaware limited liability company (“Tenant”) (each a “Party”, or collectively, the “Parties”). Landlord and Tenant (or their predecessors-in-interest) entered into that certain Site Lease with Option dated February 1, 2001 (the “Lease”) regarding the leased premises (“Premises”) located at 137 North Bryan Avenue, Fort Collins, CO 80521 (the “Property”). For good and valuable consideration, Landlord and Tenant agree as follows: 1. Commencing on March 9, 2023, the term of the Lease will automatically be extended for one (1) additional and successive five (5) year term (“Renewal Term”), provided, that Tenant may elect not to renew by providing Landlord at least thirty (30) days' notice prior to the commencement of the Renewal Term. At the commencement of the Renewal Term, provided for in this First Amendment, Tenant shall pay Landlord Twenty Four Thousand and No/100 Dollars ($24,000.00) per year as Rent, partial calendar year to be prorated in advance, by the fifth (5th) day of each calendar year. Thereafter, notwithstanding anything to the contrary in the Lease, the Rent will escalate by three percent (3%) of the rent payable for the previous year on March 9, 2024 and each anniversary thereafter. Where duplicate Rent would occur, a credit shall be taken by Tenant for any prepayment of duplicate Rent by Tenant. If Tenant remains in possession of the Premises at the expiration or termination of this Lease without a new written agreement, such tenancy shall be deemed a month-to- month tenancy. Rent for the holdover period shall be one hundred fifty percent (150%) of the last current monthly rent, plus the three percent annual (3%) escalator as applicable, prorated and paid monthly on the first day of each month. 2. All notices, requests, demands and other communications shall be in writing and shall be deemed to have been delivered upon receipt or refusal to accept delivery, and are effective only when deposited into the U.S. certified mail, return receipt requested, or when sent via a nationally recognized courier to the addresses set forth below. Landlord or Tenant may from time to time designate any other address for this purpose by providing written notice to the other Party. If to Tenant: T-Mobile USA, Inc. 12920 SE 38th Street Bellevue, WA 98006 Attn: Lease Compliance/ Site DN03245A If to Landlord: City of Fort Collins, Colorado 413 S. Bryan Avenue Fort Collins, CO 80521 Attn: Director of Parks EϬϯϮϰϱͺE>'ͲϰϳϱϯϯͺDͺϳϵϰϬϳ EXHIBIT A 2 TMO Site ID: DN03245A 6/29/20 TMO Lease ID: 79407 With a copy to: City of Fort Collins, Colorado 300 Laporte Avenue, Building B Fort Collins, CO 80521 Attn: Real Estate Service Manager 3. Tenant will ensure that Landlord has current contact information for Tenant’s employees, representatives and/or contractors that are in charge of access, maintenance, and repairs on the Premises. 4. Tenant and Landlord will reasonably cooperate with each other's requests to approve permit applications and other documents related to the Property without additional payment or consideration. 5. Except as expressly set forth in this First Amendment, the Lease otherwise is unmodified. To the extent any provision contained in this First Amendment conflicts with the terms of the Lease, the terms and provisions of this First Amendment shall control. Each reference in the Lease to itself shall be deemed also to refer to this First Amendment. 6. This First Amendment may be executed in duplicate counterparts, each of which will be deemed an original. Signed electronic, scanned, or facsimile copies of this First Amendment will legally bind the Parties to the same extent as originals. 7. Each of the Parties represents and warrants that it has the right, power, legal capacity and authority to enter into and perform its respective obligations under this First Amendment. Landlord represents and warrants to Tenant that the consent or approval of a third party has either been obtained or is not required with respect to the execution of this First Amendment. If Landlord is represented by any property manager, broker or any other leasing agent (“Agent”), then (a) Landlord is solely responsible for all commission, fees or other payment to Agent and (b) Landlord shall not impose any fees on Tenant to compensate or reimburse Landlord for the use of Agent, including any such commissions, fees or other payments arising from negotiating or entering into this First Amendment or any future amendment. 8. This First Amendment will be binding on and inure to the benefit of the Parties herein, their heirs, executors, administrators, successors-in-interest and assigns. SIGNATURES ON FOLLOWING PAGE EXHIBIT A 3 TMO Site ID: DN03245A 6/29/20 TMO Lease ID: 79407 IN WITNESS, the Parties execute this First Amendment as of the Effective Date. LANDLORD: City of Fort Collins, Colorado, a Colorado municipal corporation By: Print Name: Kelly DiMartino_____________ Title: Interim City Manager_____________ Date: TENANT: T-Mobile West LLC, a Delaware limited liability company By: Print Name: Title: Date: ATTEST: By: ______________________________ Print Name: Tammi Pusheck____________ Title: Interim City Clerk________________ APPROVED AS TO FORM: By: _________________________________ Print Name: Ryan Malarky______________ Title: Assistant City Attorney____________ dDK^ŝŐŶĂƚŽƌǇ>ĞǀĞů͗>Ϭϳͬ^>Ϭϳ EϬϯϮϰϱͺE>'ͲϰϳϱϯϯͺDͺϳϵϰϬϳ ________________________ T-Mobile legal approval as to form Erica Mateen Digitally signed by Erica Mateen Date: 2022.02.01 11:24:27 -06'00' Ingrid Decker EXHIBIT A