To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Nichol Bussey, Business Solutions Manager
Title
Resolution Approving the First Amendment to the Amended and Restated Property Lease Agreement Between the Town of Castle Rock and Cellco Partnership d/b/a Verizon Wireless for a Communication Tower (50-year lease with one-time payment to Town) [1582 Reservoir Road]
Body
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Executive Summary
Castle Rock Water (CRW) seeks Town Council approval of a Resolution for the First Amendment to the Amended and Restated Property Lease Agreement between the Town of Castle Rock and Cellco Partnership d/b/a Verizon Wireless, with American Tower acting as attorney-in-fact. This amendment modifies the Town’s existing telecommunications lease originally established in 1998 and restated in 2022.
The First Amendment extends the lease term for an additional fifty (50) years and converts the rental structure into a long-term prepaid arrangement. In exchange, the Town will receive a one-time prepaid rental payment of $1,125,000 at closing, subject to satisfaction of the conditions outlined in the amendment.
Approval of the resolution will authorize the Town Manager to execute the amendment on behalf of the Town and allow staff to proceed with finalizing all required closing documents. The prepaid lease structure provides immediate financial value to the Town while maintaining continued telecommunications operations at the site and reducing long-term renewal and administrative obligations.
Staff Recommendation
Staff recommends that Town Council approve, by resolution, the attached First Amendment to the Amended and Restated Property Lease Agreement with Cellco Partnership d/b/a Verizon Wireless (through American Tower as attorney-in-fact), and authorize the Town Manager to execute the amendment on behalf of the Town.
Approval of the resolution will allow the Town to finalize the transaction, extend the lease term for fifty (50) years, and receive the one-time prepaid rental payment of $1,125,000 in accordance with the amended lease terms.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Staff Report
Attachment A: Resolution
Exhibit 1: Agreement
Attachment B: Location Map