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Item 1.G.
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| City Council Regular | |
| Date: | 06/23/2025 |
| Title: | Commercial Non-Aviation Ground Lease for Use as a Communications Equipment Site with Network Information Systems |
| Presented by: | Jeff Roach |
| Department: | Airport |
| Presentation: | No |
| Legal Review: | Template Contract |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends the City Council approve a new Commercial Non-Aviation Ground Lease for Use as a Communications Equipment Site with Network Information Systems for a ten-year term beginning May 1, 2025 and ending on April 30, 2035.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The City Council first approved a ten-year Commercial Non-Aviation Ground Lease for Use as a Communications Equipment Site with Network Information Systems (NIS) on April 13, 2015. NIS constructed a new 100-foot tall wireless communication tower with supporting ground equipment to supply reliable data services to Billings businesses as an independent provider not associated with a large carrier. The 2015 Lease expired on April 30, 2025. NIS now desires to enter into a new ground lease to continue operating its data service equipment site on the 4,200 square foot parcel located on the west end of the Airport, adjacent to the Verizon cell tower and a water reservoir owned by the City of Billings. Staff worked with NIS on a new ten-year Lease with a term beginning May 1, 2025 and ending April 30, 2035.
ALTERNATIVES
City Council may:
- Approve a new ten-year Ground Lease with Network Information Systems for use as a communications equipment site; or,
- Not Approve a new ten-year Ground Lease with Network Information Systems for use as a communications equipment site.
FISCAL EFFECTS
This Lease will generate $13,887.84 in rental income for the first year. The annual amount is divided between the ground rental, which will start at $6,943.92 per year, and a charge of $6,943.92 for each antenna installed. Both charges will be adjusted annually on the anniversary date, using the average of the monthly percentage increases for the previous calendar year, as determined by the Department of Labor Consumer Price Index for All Urban Consumers (CPI-U), published by the Bureau of Labor Statistics. The published Bureau of Labor Statistics' monthly percentage increases reflect year-over-year percentage increases for each individual month of a year.