To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Jeff Brauer, Director of Parks and Recreation
Title
Resolution Approving a Property Lease Agreement Between the Town of Castle Rock and Cellco Partnership D/B/A Verizon Wireless for a Communication Tower in the Gateway Mesa Open Space [4678 Highway 86]
Body
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Executive Summary
The purpose of this agenda item is to seek Town Council approval of a Property Lease Agreement with Cellco Partnership, doing business as Verizon Wireless, for the purposes of occupying and utilizing its existing communications facilities at Gateway Mesa Open Space, which includes a cell tower, metal shed and antenna relay equipment, as well as an access road to the equipment.
Discussion
The Town is the property owner of Gateway Mesa Open Space located at 4678 Highway 86, Castle Rock, Colorado. Before the Town acquired the property in 1999, the previous owners had signed an Option and Lease Agreement with US West New Vector Group, Inc. in 1994 to lease a portion of the property for the installation and maintenance of communication equipment and an access road for ingress and egress to the equipment for four consecutive periods of 5 years each. All rights, duties and liabilities, excluding the monthly rental income outlined in the 1994 agreement, along with a 1999 addendum, was assigned to the Town by the property seller during the acquisition of Gateway Mesa Open Space in 1999. In January 2021, the terms of the Option and Lease Agreement expired and the Town opted to negotiate a new agreement with Cellco Partnership to allow for continued lease of the communications facilities and use of the access road.
The Property Lease Agreement provides for ongoing operation and maintenance of the communication facilities, which is a 50’ by 60’ parcel on the property together with access easements for ingress, egress and power, consisting of a weather resistant cabinet (metal shed) for the cellular electronics, four cellular antennas and cellular tower. The lease agreement will be for an initial term of 5 years with the right to extend the lease for four additional 5-year renewals. The monthly rent for the first year of the lease will be $2,500, then shall increase by 3 percent annually, rounded to the nearest hundredth decimals, for each subsequent year.
As part of the negotiations for the new lease agreement, Cellco Partnership has agreed to improve the access road on the property in accordance with specifications described by the Town and included in the lease agreement. These improvements will occur within 12 months of the execution of the lease agreement.
Budget Impact
The Town will be paid a monthly rent based on the renewal terms outlined in the lease agreement. These funds paid to the Town are intended to be used for Parks and Open Space.
Staff Recommendation
Staff recommends that Council authorize the execution of this agreement with Cellco Partnership for the ongoing operation and maintenance of an existing communication tower at Gateway Mesa Open Space.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Alternative motions:
“I move to approve the Resolution as introduced by title, with the following conditions: (list conditions).”
“I move to continue this item to the Town Council meeting on (date) to allow additional time to (list information needed).”
Attachments
Resolution
Memorandum of Property Lease Agreement
Property Lease Agreement