Gold Creek Cellular of Montana Limited Partnership, DBA Verizon Wireless, desires to renew two existing cell tower Leases on Airport property. The first tower is located on the west end of the Airport near the City's red and white water tower. The original Lease was established in September 1997 for a ten-year term that ended on September 30, 2007. The City Council subsequently approved a five-year renewal of this Lease on July 23, 2007, extending the term to September 30, 2012. The new Lease extends the term for a ten-year term to September 30, 2022. Gold Creek Cellular has previously allowed other cell phone companies to co-locate on the west end tower, due to its strategic location overlooking the City, and the new Lease will also permits co-location.

The second tower is located on the east end of the Airport and provides coverage to the Alkali Creek residential area. The original Lease on this tower was established in May 2007 for a five-year term that ended on May 31, 2012. The new Lease will extend that term for ten years to May 31, 2022. Gold Creek Cellular will be upgrading its equipment at this site to provide for 4G capability.

The City Council may:

• Approve the renewals of each of the Gold Creek Cellular of Montana Limited Partnership, DBA Verizon Wireless Communication Ground Leases; or
• Not approve the renewals of each of the Gold Creek Cellular of Montana Limited Partnership, DBA Verizon Wireless Communication Ground Leases.

For the first year of each Lease, the City will receive $10,000, for a combined first-year revenue of $20,000. The annual amount is split between the ground rental, which will start at $5,000 per year, and a charge of $5,000 for each set of antennas installed. Both charges will be adjusted annually by the Consumer Price Index for All Urban Consumers (CPI-U).

Staff recommends that Council approve both ten year Commercial Non-Aviation Ground Leases for Communication Sites with Gold Creek Cellular of Montana Limited Partnership, DBA Verizon Wireless for terms ending in 2022.