Gold Creek Cellular of Montana Limited Partnership, d/b/a Verizon Wireless, wishes to lease property at Fire Station No. 4 (Terry Park) 475 6th Street West, Billings, Montana, to install a cellular antenna and related utilities to support the antenna which will be enclosed by a faux structure attached to the fire station. This will not be a traditional height cell tower, rather, the height of the antenna is anticipated to be approximately 20 feet above the roof line of the Fire Station. Fire, Parks, Recreation and Public Lands (PRPL) and Legal staff have jointly worked with Gold Creek Cellular, d/b/a Verizon Wireless on the terms of the lease. There are several other City properties which currently have cell tower lease agreements such as Stewart Park, Swords Park, and Fire Station No. 6. Proceeds from the lease will be utilized by the Fire and PRPL departments. The lease contains usual provisions concerning liability insurance, indemnification and other lease provisions similar to the other existing Gold Creek/Verizon Wireless lease agreements with the City. Rental payments and so-called rent escalator provisions are further described in the Financial Impact section below.

City Council may:

• Approve the lease agreement with Gold Creek Cellular of Montana, or;
• Disapprove the lease.

In Section 3 of the proposed lease agreement, the initial term of the proposed lease is five (5) years. Gold Creek will pay the City $80,000 in advance, at lease signing, as rent for this first five-year period. Thereafter, the lease provides for four additional automatic five-year lease periods unless terminated by Gold Creek as provided in the lease. In Section 5, the annual rental for the first year and subsequent years of these additional five-year terms shall be paid monthly and increased annually by 2% over the preceding year's rent.

If the agreement has not been terminated after the fourth five-year extension term, the agreement shall continue in effect for five-year terms until terminated by either party giving the required notice specified in the lease agreement.

Staff recommends that the City Council approve the Ground, Building and Rooftop Lease with Gold Creek Cellular of Montana Limited partnership, d/b/a Verizon Wireless.