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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/16/2010 - FIRST READING OF ORDINANCE NO. 033, 2010, AUTHORIZ DATE: March 16, 2010 STAFF: Helen Matson, Kayla Ballard _ Bill Whirty First Reading of Ordinance No. 033, 2010, Authorizing an Option to Lease, and a subsequent lease of, City-Owned Property at Fossil Creek Community Park to Clear Wireless, LLC for the Installation of a Wireless Service Tower and Related Equipment, and the Grant of Associated Easements. EXECUTIVE SUMMARY Clear Wireless, LLC has requested to lease 625 square feet of City-owned property, in the southeast area of Fossil Creek Community Park, near the maintenance buildings along South Lemay Avenue, to install a 50-foot tower and related equipment to enhance wireless service in the area. Additionally,Clear Wireless is requesting utility and access easements that are necessary for the operation and maintenance of its tower and equipment. BACKGROUND / DISCUSSION Clear Wireless approached the City regarding the possible lease of land for the installation of a 50-foot tower with related equipment to enhance wireless service and necessary utility and access easements needed for tower operation. The proposed lease area is located in the southeast area of Fossil Creek Community Park, near the maintenance buildings along South Lemay Avenue. Through a series of negotiations, staff developed a Ground Site Option and Lease Agreement with Clear Wireless that meets the needs of both parties. The Lease Agreement contains the following: (1) an option to lease for a six-month period for a payment of$2,500, with one 6-month renewal period for an additional payment of$2,500. The option to lease allows Clear Wireless the opportunity to complete its due diligence of the site, which includes going through the Community Development& Neighborhood Services' regulatory requirements process, and, if they continue; (2) a proposed lease term for an initial five (5) years.with automatic renewal of four (4) successive five-year periods. FINANCIAL IMPACT Clear Wireless will be responsible for all costs to install and maintain their tower and fence. Clear Wireless will also be responsible for all utility expenses for the tower and equipment. The lease will generate$16,800 annually over the initial five-year term. The lease rate will increase 20% each additional five-year term. Parks Division will use the revenue from this lease for minor capital improvements, known as the Life Cycle Funding Program, in the parks for renovations and replacement of worn out infrastructures. SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS There is a rapidly growing need for wireless internet. The installation and operation of this tower will provide wireless services to many businesses and residences that currently do not have access to this service STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. March 16, 2010 -2- ITEM 19 ATTACHMENTS 1. Photo Simulation 2. Location Map 0 - � a , A _• , . - 0 4, r !yr yi it I Vk CO = DEN1027 FOSSIL CREEK PAR EXISTING VIEW PROJECT NO. 80906 DRAM BY • fir 0 ATTACHMENT I Page 2 of 3 looking from NE , viewing SW y ;I it c _ CO = DEN1027 FOSSIL CREEK PARK A SHEET NUMBER PROPOSED VIEW OF TOWER AND EQUIPMENT COMPOUND ELEGANTE ISSUED FOR PROJECT NO 80933 uv our `xoz OILWA I.r610 2GNINGU"u i DRAWN BY nuara17175. BwIdnSulrc 300Tulu,Ok 74118nlep roDATE DRAWN. TFK (9181S87i630 Fax (918129S 0265 urrnr. CHECKED eY SLIM • `; + oYrR • PROPOSED TOWER y Ado Ado }r * A A A - Ad Ad CAI Add A AAd . AAA • • • . ' `r` .AAA A Ad Ala r dry R • Ad 1 AP frol Ad do-dod OL do Ad Ala a Zr Ad F - } ' .a d do Add Ada A A16 A Ad pa P Ad a Add do or A A Ad re Ad T/+✓ ! dol d. • All k Ad Aad r . .� aAd 4 • do od ,� : Add A Ad Aid g{� 1, . sI do � . ' ICI. A I Pi 1 n r , do ro-T Ali TTTLE SHEET NUMBER COmDEN1027 FOSSIL DISTANT VIEW OF "PROPOSED TOWER DRAWN BY . . 16 4400 980M 1425) 216-7600 OFFICE lam- ;amAqs:Ajjlc;�oil �� Attachment 2 Clear Wireless LLC Tower Lease at Fossil Creek Community Park Location Map E GRE IV O O cl r` Southridge Golf Course �^ I � Southridge Golf Course a[ r i QO6P J l N *Location of Tower and Related Equipment p, ORDINANCE NO. 033, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING AN OPTION TO LEASE, AND A SUBSEQUENT LEASE OF, CITY-OWNED PROPERTY AT FOSSIL CREEK COMMUNITY PARK TO CLEAR WIRELESS, LLC FOR THE INSTALLATION OF A WIRELESS SERVICE TOWER AND RELATED EQUIPMENT, AND THE GRANT OF ASSOCIATED EASEMENTS WHEREAS,the City is the owner of that certain parcel of real property described on Exhibit "A", attached and incorporated herein by reference (the "Property"); and WHEREAS, the Property is part of Fossil Creek Community Park; and WHEREAS,Clear Wireless,LLC("Clear Wireless")has asked the City to lease it 625 square feet of space on the Property (the "Lease Parcel") for the installation of a 50-foot wireless service tower and related equipment to enhance its wireless service, and grant it a utility easement and an access easement to serve the tower (the "Easements"); and WHEREAS, the proposed Lease Parcel and Easements are described on Exhibit "B", attached and incorporated herein by reference; and WHEREAS, staff has worked with Clear Wireless on negotiating and preparing an option, lease and easement agreement(the"Agreement'),a copy of which is on file in the office of the City Clerk; and WHEREAS, under the terms of the Agreement, Clear Wireless would receive a six-month option to lease the Lease Parcel and acquire the Easements for a payment of$2,500 with one six- month renewal period for an additional $2,500; and WHEREAS, if Clear Wireless exercises the option, the Agreement would remain in effect for an initial lease term of five years,with four additional,successive five-year renewal periods;and WHEREAS, use of the Easements would be governed by the terms of the Agreement, and would terminate when the lease of the Lease Parcel terminates; and WHEREAS, the Agreement further provides that Clear Wireless shall make annual lease payments to the City at a rate of$16,800 per year for the initial lease term, said rate to be increased each renewal term by twenty percent; and WHEREAS,the Agreement would allow Clear Wireless to sublease space to up to two sub- tenants,including the right to partially assign its use of the Easements,provided Clear Wireless pays the City rent for each such sublease in the amount of$7,200 per year for the first five years of each sublease, said rate to be increased by twenty percent for each additional five year period of a sublease; and WHEREAS, the Agreement requires Clear Wireless to proceed in accordance with any applicable regulatory requirements or restrictions, including the City Land Use Code and building permit requirements; and WHEREAS, City staff has determined that the proposed installation and use by Clear Wireless of its equipment on the Lease Parcel and use of the Easements on and under the Property are consistent with and will not conflict or interfere with the City's and the public's use of the Property; and WHEREAS, City staff has further determined that the financial benefits to the City of permitting the proposed use are substantial, and the impacts to the City are minimal; and WHEREAS, Section 23-111(a)of the City Code authorizes the City Council to sell,convey or otherwise dispose of any and all interests in real property owned by the City, provided that the City Council first finds,by ordinance,that such sale or other disposition is in the best interests of the City. 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 option to lease and the subsequent lease of the Lease Parcel to Clear Wireless, LLC , and the associated grant of a utility easement and an access easement on and across the Property, all as described on Exhibit `B", on terms and conditions consistent with this Ordinance, are in the best interests of the City. Section 2. That the Mayor is hereby authorized to enter into the Agreement with Clear Wireless, LLC for the option to lease and lease of the Lease Parcel and grant of the Easements, in substantially the form as is on file in the office of the City Clerk,together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary or appropriate to protect the interests of the City or effectuate the purposes of this 'Ordinance, including but not limited to any necessary changes to the legal description of the Lease Parcel or either of the Easements, as long as such changes do not materially increase the size or change the character of the Lease Parcel or either Easement. Introduced, considered favorably on first reading, and ordered published this 16th day of March, A.D. 2010, and to be presented for final passage on the 6th day of April;A.D. 2010. Mayor ATTEST: City Clerk -2- Passed and adopted on final reading on the 6th day of April, A.D. 2010. Mayor ATTEST: City Clerk -3- i Exhibit A I I PARENT PARCEL DESCRIPTION: Lot 3,Fossil!Creek Community Park,City of Fort CoMm Laft r County.Coldraft Exhibit B LEASE AREA DESCRIPTION: That part of Lot 3,Fossii Creek Community Park,City of Fort Collins,LaranerCow*,Colorado,end being mote pardcularlydescribed as follows: Referring to the Southeast Comer of said Lot 3;thence northerly on the West Right of Way 9ne of S.Lemay Avenue,on a rive to the left,with a radius of 1442M.a chord bearing of N 10'S7'46'E and a chord length of SZ57 feet:thence westerly N 80004'SC W,115.29 feet to the Point of Beginning for the described Lease Area:thence southwesterly S 70-23W W,25.W fees:thence northwesterly N 19036'24'W,25.00 feet:thence northeasterly N 70023'3W E,25.00 feet;thence southeasterly S 1903624'E,25.00 feet,to the Point of Beginning.Containing a total calculated Area of 625 Square feet,more or less. ACCESS EASEMENT DESCRIPTION: A Access Easement 10 feet In width located in that part of Lot 3,Fossil Creek Community Park,City of Fort Collins.Larimer County, Colorado,and center being more particulady described as follows: Referring to the Southeast Comer of the described Lease Area;thence nor0neastedy N 70°23W E,5.00 feet,to the Point of BegMng for the center line of the described easement thence northwesterly N 1903624'W.238.59 feet;thence northeasterly N 70023W E. 98.83 feet,to the Point of Termination for the center ft of the described easement UTILITY EASEMENT DESCRIPTION: A Witty Easement 5 feet in width located in that part of Lot 3,Fossil Creek Comrtxmity Padc,City of Fort Collins,Lartmer County. Colorado,and center being more particularly described as follows: Referring to the Southwest Comer of the described Lease Area;thence south eastarly S 19°38'24'E,2.50 feet,to the Point of Beginning for the center this of the described.easement:thence northeasterly N 70623W E,35.00 feet to the Point ofTem>3 m&n for the center line of the described easement I