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CC Work Session 2. 5. <br />Meeting Date: 11/22/2022 <br />Information <br />Title: <br />Discussion: Proposed Verizon Cell Tower Lease Amendment <br />Purpose/Background: <br />MD7, on behalf of Verison Wireless, has presented the City with a proposed amendment to a Cell tower Lease. <br />The original lese began in 2001 and is in its final years under the original terms. The proposal largely leaves the <br />terms unchanged except for the monthly rent rate and rent escalators. Earlier in 2022, the proposed change would <br />have dropped the monthly rate from its current approximately $2,800/month to $1,800/month. As discussions <br />continued, MD7 emailed and indicated a monthly rent rate of $1,950 would be supported. The rent escalator <br />would change from an annual increase based on a calculation within the lease agreement to a 10% increase after <br />each five year term. <br />Under both 2022 proposals, the maximum length of the lease agreement would be 25 five years. If the maximum <br />time frame occurred and the terms were implemented under the beginning monthly rate of $1,950, the maximum <br />revenue generated by the lease would be approximately $714,297 over the next 25 years. <br />Timeframe: <br />Funding Source: <br />Responsible Party(ies): <br />Brian Hagen, City Administrator <br />Outcome: <br />Provide consensus direction of one of the following options: <br />1) Let the lease terminate at the end of the original contract. <br />2) Accept the proposal and direct staff to notify MD7 of such support. <br />3) Propose a counter offer for staff to present to MD7 for Verizon Wireless' consideration. <br />Master Contract <br />Verizon Active Review Letter <br />Verizon Proposed Term Sheet <br />Updated Emailed Proposed Terms <br />Attachments <br />Form Review <br />Inbox Reviewed By Date <br />Brian Hagen Brian Hagen 11/17/2022 04:27 PM <br />Form Started By: Brian Hagen Started On: 11/15/2022 08:29 AM <br />Final Approval Date: 11/17/2022 <br />