ACTION REQUESTED:
Title
Communication from the City Manager and Corporation Counsel with a Request to APPROVE the AGREEMENTS to Amend the Leases between the City and VERIZON (Through Verizon’s Agent AMERICAN TOWER).
Body
BACKGROUND: Verizon Wireless owns and operates several cell phone towers on properties leased from the City. The addresses of those properties are the following:
1. Fire Station No. 8 (Gwynn Park), 832 W. Hurlburt Street
2. Police Station No. 2 (Pioneer Park), 2011 W. Altorfer Drive
3. 3615 Grandview Drive (Glen Oak)
Verizon entered into an agreement with American Tower that turns over the operation and management of Verizon’s cell towers. American Tower, essentially, has become a property manager for Verizon. American Tower wishes to amend Verizon’s tower leases to extend their terms (17 years for the Altorfer Drive site and 15 years each for the Hurlburt Street and Grandview Avenue sites).
FINANCIAL IMPACT: For each cell tower site, the City will receive a monthly rent and a percentage of revenue that Verizon receives from subleasing their towers. The current amounts for each property are as follows:
1. 832 W. Hurlburt Street
Monthly Rent: $1,440.70
Current Revenue Share: $2,014.00
Total: $3,454.70
2. 2011 W. Altorfer Drive
Monthly Rent: $1,385.32
Current Revenue Share: $ 254.43
Total: $1,639.75
3. 3615 Grandview Drive
Monthly Rent: $1,385.34
Revenue Share: $2,204.00
Total: $3,589.34
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: City would continue to receive revenues from previously existing Agreements until the year 2036.
IMPACT IF DENIED: City would continue to lease properties for term in original Agreements.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
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
2. Grow Peoria: Businesses, Jobs, and Population
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Support sustainability.
2. Grow employers and jobs.
DEPARTMENT: Legal