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Extend and Provide Option to Expand Territory of the Encroachment and Lease Agreement for Town Right-of-Way along Cleland Drive for Continued Use as a Cellular Tower Site.
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Staff:
Department:
Scott Clark, Executive Director
Technology Solutions
Amy Oland, Director
Business Management
Overview: The attached resolution would authorize the Manager to extend the lease agreement period and offer Tenant an option to expand the encroachment of this Cellular Tower in the Town right-of-way space on Cleland Drive to NCWPCS MPL 31 - YEAR SITES TOWER HOLDINGS LLC, successor to Crown Castle International Corp.
Recommendation(s):
That the Council adopt the attached resolution that would authorize the Manager to execute an amendment to the encroachment and lease agreement of Town right-of-way along Cleland Drive to Tenant for two successive five (5) year terms commencing on July 1, 2026, and providing an option to expand the leased territory by a maximum of 432 square feet.
Background: This encroachment and lease agreement originally expired November 12, 2006 and was renewed January 23, 2006 for a ten-year term. The ten-year encroachment and lease agreement expired June 30, 2016 and was renewed in 2013 for a ten-year term to end on June 30, 2026. The lease amount began at $1,950 per month ($23,400 per year) with an annual 3% increase over the previous year. The Town is currently receiving $2,398 per month ($28,779 per year).
North Carolina General Statute 160A-372 states that property may be rented or leased by municipality pursuant to a resolution of the Council authorizing the execution of the lease, adopted at a regular meeting. Extension and expansion of the Lease requires Council authorization. We believe that the arrangement has worked well for both parties. If the Council agrees, we would amend the lease on the following terms:
* The amendment would extend the existing lease up to two additional five (5) year terms to end June 30, 2036.
* The lease ...
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