Traprock Park Mono-Pole Cell Tower Lease

The city was approached in 2024 to lease a portion of park land for a new mono-pole cell tower.  The request came for Central Park. However, staff suggested consideration be given to Traprock Park.  Traprock Park is a vacant parcel of land located at 15650 Traprock St NW.  It is approximately 4.5 acres in size and also abuts Variolite St NW.  This park has experienced varying uses, but as noted, the site is vacant from any structures.  Although platted as park land, the most notable use in recent years has been a storm debris drop off site for tree branches.  The location is surrounded by residential properties with parcel sizes of 1–5 acres.

The Towers, LLC has provided a proposed lease with terms related to duration and financial costs.  Right now, Verizon would be the carrier on the site.  The most notable terms of the lease are as follows:
Option to Lease: Upon approval of the lease, the tenant would receive an exclusive option to lease the premise.  This option period would encompass up to a four year period, with compensation to the city of $600.
Term: Upon commencement of the lease, a total of 10 terms would be granted in five year increments totaling 50 years.  Each five year renewal would be at the tenant's option to renew.
Rent: The tenant would pay the city $600 per month with an annual increase of .49%.  Rent would not begin until the third month of the first year after the commencement date.  Year 1 revenue from the lease would equal $6,000, year 2 $7,500, then .49% increase each year after.

Staff reviewed the proposed lease, then provided feedback.  Staff shared two recent cell tower lease amendments/extension executed in recent years.  It should be noted, these two extensions did not require new infrastructure to the sites.  Details of the two are below:
Alpine Park Mono-Pole:
25 years in five year increments, $26,400 annual revenue, one-time up front payment of $25,000, additional revenue based on additional service providers located on the mono-pole (approximately $500/mo per carrier).
Water Tower Lease:
25 years in five year increments, $24,000 annual revenue, first term guaranteed rent payment totaling $120,000.

Staff asked for a revised lease based on the recent renewals the city has agreed to.  Below are the revised proposed terms for the Traprock Park Lease:
Option to Lease: Upon approval of the lease, the tenant would receive an exclusive option to lease the premise.  This option period would encompass up to a four year period in two year increments, with compensation to the city of $2,000 for each two year period.
Term: Upon commencement of the lease, a total of 10 terms would be granted in five year increments totaling 50 years.  Each five year renewal would be at the tenant's option to renew.
Rent: The tenant would pay the city $1,150 per month with an annual increase of 1.5%.  Rent would not begin until the third month of the first year after the commencement date.  Year 1 revenue from the lease would equal $11,500, year 2 $15,800, then a 1.5% increase each year after.
Additional Rent: $200/month per additional carrier.

In summary, the proposed lease for Traprock Park creates approximately half of the revenue as compared to our two most recent lease extensions.

None is required at this time.  However, should a lease be supported by the City Council, staff recommends conducting community engagement.  The project would also be required to follow a land use application process which would allow for additional community input.

There is no strict timeframe right now.  Staff has been in discussion for a number of months.  There was a delay in discussions as the city finalized items at the end of 2024, and staff felt this warranted waiting for the new council to come on board.

After being approached, staff held brief discussions on how the park city could utilize this revenue to fund other park like amenities at this location.  The proposed location of the mono-pole would not restrict other improvements from occurring.  Though play structures have not been present here in the past, community engagement may present support for such improvements.  Another option could include amenities like an archery range.

Alternatives:
1) Support the lease as presented and move forward with community engagement and a land use application process.
2) Counter the terms of the lease to better match recent market terms approved by the city on two other locations.
3) Deny the request.  This would not necessarily eliminate a new cell tower within Ramsey.

Staff recommends consideration of the request due to the lease providing an alternative revenue source to the city.

Provide direction to staff whether there is support from the city council to move forward with the request.  Next steps may include additional negotiation on the terms, preparing potential park amenity options for public outreach, scheduling public outreach events in conjunction with the tenant.