AGENDA TITLE:
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Adopt a Resolution Authorizing City Manager to Execute Second Amendment to Lease Agreement with T-Mobile West, LLC, for Ground Space Lease at 1331 South Ham Lane (PW)
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MEETING DATE:
June 5, 2024
PREPARED BY:
Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a Resolution Authorizing City Manager to Execute Amendment No. 2 to Lease Agreement with T-Mobile West, LLC, for Ground Space Lease at 1331 South Ham Lane.
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BACKGROUND INFORMATION:
The original term of this lease was for 10 years, commencing on July 1, 1999. The lease also granted the tenant an option to extend for one additional five-year term which was exercised commencing on July 1, 2014. At its meeting on August 21, 2013, City Council authorized a first amendment that added two additional and successive five-year periods to extend the contract. These additional term periods will expire on June 30, 2024.
This second amendment will add five additional and successive five-year terms to the lease, commencing on July 1, 2024. The City will receive monthly rent in the amount of $1,046.89 with an annual escalator of 3%. Staff recommends Council adopt a resolution authorizing the City Manager to execute Second Amendment to Lease Agreement with T-Mobile West, LLC., for ground space lease at 1331 South Ham Lane.
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
The amendment will provide rental revenue to the General Fund in the amount of $12,563 per year for the first year and will escalate annually by 3% thereafter.
FUNDING AVAILABLE:
Not Applicable.
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Charles E. Swimley
Public Works Director
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Andrew C. Keys
Interim City Manager