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Council amends Zipley fiber lease; city gives telecom tenant limited time to vacate server room

City Council · March 1, 2025
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Summary

Council approved an amendment to the Zipley (formerly Patera) lease that provides a six‑month term with up to six month‑to‑month extensions at $3,500/month and a termination notice requiring the tenant to relocate fiber and server equipment off city property.

The council approved Resolution F338 to amend the city's lease with Zipley (assigned from Patera) for fiber and server‑room space. Steve explained that negotiations stalled after the prior assignment and the city issued a termination notice; the amendment provides a six‑month lease followed by the option for month‑to‑month extensions (at $3,500 per month) while the tenant looks for alternate space and fiber.

Mark (city staff) described the earlier revenue‑sharing expectation that did not materialize and said negotiations became frustrating; the amendment was negotiated with legal staff and was presented as the mutually acceptable path to vacate the city server room. Council approved the amendment by voice vote.