ACTION REQUESTED:
Title
Communication from the City Manager and the Corporation Counsel with a Request to APPROVE the Consent to the GROUND LEASE SUBLEASE and LEASEBACK with AMERICAN TOWER CORPORATION and AUTHORIZE the City Manager to Execute All Necessary Documents for the Sites Located at 2015 W. WILLOW RD., 3511 N. DRIES LANE; and 1615 SW WASHINGTON RD.
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BACKGROUND: On January 7, 2015, American Tower Corporation (“American Tower”) notified the City that American Tower had entered into an agreement with Verizon Communication, Inc. (“Verizon”) for American Tower to manage and operate portion of Verizon’s tower portfolio. Locally, the Verizon’s tower portfolio includes three sites: 2015 W. Willow Rd.; 3511 N. Dries Lane; and 1615 SW Washington Rd. Included in this agenda item is the letter from American Tower dated January 7, 2016, enclosed with Exhibit A that lists the three sites.
As part of the transaction between Verizon and American Tower, American Tower is requesting from the City of Peoria for consent to the Ground Lease Sublease and Leaseback with American Tower for the three sites. Staff was able to negotiate with a one-time payment of $15,000 from American Tower to the City of Peoria for the execution of the consent to the Ground Lease Sublease and Leaseback for each tower site. This one-time payment is in addition to the monthly rent and rent sharing for any additional third party collocator’s rent.
FINANCIAL IMPACT: In addition to the monthly rent from American Tower, the City will realize a one-time gain of $15,000 for each of the three tower site locations.
NEIGHBORHOOD CONCERNS: Not applicable.
IMPACT IF APPROVED: Allows American Tower to retain rights to continue using the cellular tower sites in place of Verizon.
IMPACT IF DENIED: The Ground Lease for the three cellular tower sites will remain, allowing only Verizon to retain the rights to continue using the tower sites.
ALTERNATIVES: As directed by the City Council.
EEO CERTIFICATION NUMBER: Not applicable.
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
DEPARTMENT: Legal