Approval of Alpine Park Cell Tower Lease Extension

The City entered into a Site Agreement with T-Mobile Central LLC, which was later assigned to SBA Communications Corporation, for the purpose of leasing space at Alpine Park to construct a monopole communications facility. The current lease is set to expire December 31, 2029.  In an effort to secure confidence for the carriers located on the pole, SBA is seeking a 25-year lease extension in five (5) year terms.  The proposed terms are as follows:
1. 25-year Lease Extension in 5-year terms
2. $25,000 Signing Bonus
3. Increase rent to $2,200/mo on 1/1/2025 in lieu of a CPI increase
4. Keep CPI Escalation every 5 years
5. Right Of First Refusal for Leased area only/no exclusivity

Currently, the monthly rent amount is $1,785 or $21,428 per year.  In addition to the lease revenue, the City also receives profit sharing from carriers located on the pole (excluding T-Mobile) of approximately $10,000 per year.  This profit sharing would continue under the lease extension terms.

Alternative 1: Approve the lease extension
Alternative 2: Deny the lease extension

Staff recommends extension of the lease agreement per the above terms.

Motion to approve a Lease Extension with SBA Communications Corporation at Alpine Park subject to the terms identified.