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Council introduced lease amendment to extend water-tower cell-site term and raise monthly rent
Summary
An ordinance was introduced authorizing the mayor to execute a lease amendment with New Cingular Wireless (AT&T) for a water-tower lease that would increase rent to $4,000 per month and add a 3% annual escalation beginning July 15, 2028, plus extend terms.
The council introduced an ordinance authorizing the mayor to execute a lease amendment with New Cingular Wireless PCS LLC (by merger, formerly BellSouth Mobility) for a water-tower lease at the city’s property.
The proposed amendment updates an original 2003 water-tower option and lease agreement and subsequent amendments. The term letter attached to the ordinance provides for an initial rent of $4,000 per month, an annual 3% escalation in rent beginning July 15, 2028, and an additional 10-year renewal term followed by two five-year renewal options. The amendment also includes language on permitted use, right of first refusal, and sale provisions.
Councilwoman Laura Smith and staff said the amendment extends the original arrangement and increases monthly revenue while providing longer-term commitments from the tenant. “It’s basically just an extension of the original 2003 agreement... It extends it instead of a 5 year term… to a 10 year term, and it increases the monthly rent to $4,000 a month with a 3% annual increase,” said staff working on the item.
The ordinance was introduced for consideration and will return to the council for final action. Council members were told staff and the city’s purchasing and legal teams had negotiated the terms and that technical questions could be directed to staff prior to the final vote.
