Consent 1.F.
Regular City Council Meeting
- Meeting Date:
- 04/13/2015
- TITLE
- Commercial Non-Aviation Ground Lease for Use as a Communications Equipment Site with Network Information Systems
- PRESENTED BY:
- Tom Binford
- Department:
- Airport
Presentation:
PROBLEM/ISSUE STATEMENT
Network Information Systems desires to enter into a new ground Lease for the purpose of constructing a new 100-foot tall wireless communication tower with supporting ground equipment. Network Information Systems intends to supply reliable data services to Billings businesses as an independent provider not associated with a large carrier. The location proposed in this Lease is a vacant 4,200 square foot parcel on the west end of the Airport, adjacent to the Verizon cell tower and a water reservoir owned by the City of Billings. The term is for ten years, beginning May 1, 2015 and ending April 30, 2025. The proposed tower is within one mile of another communication tower over 50 feet in height, and therefore required a special review. The Zoning Commission held a public hearing on Special Review #922 on February 3, 2015, and recommended conditional approval on a 4-0 vote. The City Council held a public hearing on Special Review #922 on February 23, 2015, and approved the Zoning Commission recommendation. A copy of the Lease is on file in the City Clerk's Office.
ALTERNATIVES ANALYZED
City Council may:
- Approve a new ten-year Ground Lease with Network Information Systems for use as a communications equipment site; or
- Disapprove a new ten-year Ground Lease with Network Information Systems for use as a communications equipment site.
FINANCIAL IMPACT
This Lease will generate $10,000 in rental income for the first year. 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 antenna installed. Both charges will be adjusted annually by the Department of Labor Consumer Price Index for All Urban Consumers (CPI-U), published by the Bureau of Labor Statistics. As required by City Code, the Lease allows for co-location of antennas owned by other providers on the tower structure.
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, 2015 and ending on April 30, 2025.