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HomeMy WebLinkAbout07/17/2013 6G AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT- Land Lease Agreement for Study Session Date July 10, 2013 Communication Site at 3027 Olympus Drive COUNCIL MEETING Date July 17, 2013 Department Public Works & Util Presenter Bill McKinney Phone 360 473 5354 SUMMARY This proposed lease agreement with SBA 2012 TC Assets, LLC is for an existing tower and an approximate 40'x 40' ground facility at 3027 Olympus Drive located on Water Utility property SBA acquired the assets of former tenant, Towerco Assets, LLC in November 2012 and were assigned their lease at this site, which expired April 5, 2013 A new lease has been negotiated with SBA which includes a longer term (25 years) than the former lease and provisions for subletting on the existing tower The conditions of the lease have been reviewed by the City's communications consultant and his suggestions incorporated, so that this agreement is substantively typical for the industry The longer lease term allows for a more favorable investment horizon for the lessee with the potential for additional sub - lessees, and less administrative costs for the City ATTACHMENTS. Memorandum of Land Lease and Land Lease FISCAL IMPACTS (Include Budgeted Amount) Lease fee will start at the current rate of $1,647 44 /month with an increase of 4% beginning with the second year of the lease and every year thereafter Current annual revenue from this lease is $19,769 28 The City will also receive 50% revenue sharing per month for sub - lessees that co- locate at the site STUDY SESSION AGENDA ® No Presentation ❑ Full Presentation STUDY SESSION ACTION: © Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Land Lease Agreement with SBA 2012 TC Assets, LLC for the communication site at 3027 Olympus Drive and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented COUNCIL ACTION: dApprove ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/25/13