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Consideration of amendment to lease with Crown Castle for antenna space on Hart Park Monopole
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Submitted by:
John Ruggini
Department:
Finance Department
A. Issue
There is currently no cell phone antenna on the monopole at Hart Park. The lessee, Crown Castle, is requesting a modification to the terms of the lease or they will not renew when the current five-year term expires in 2028.
B. Background/Options
The City entered into a 5-year lease agreement with five 5-year extensions beginning in 2003. The last five-year extension would begin in August 2028. The City was approached by the current lessee, Crown Castle, with a request to amend the terms of the lease. Currently, the lessee is paying $54,201 annually which helps fund the Parks budget. However, Crowne Castle, which serves as a go-between with the cell phone companies, indicated there is no longer a cell-antenna on the mono-pole near the stadium so that they have no income stream to pay the annual lease payment. They've indicated that they would be willing to enter into a 50% revenue share agreement with the City or they would terminate the lease when the current term expires.
A 50% revenue share would likely generate $20,000-$25,000 in the current marketplace. While this is significantly less than the current lease agreement, Crown Castle is willing to add six additional five-year renewal terms to the current agreement.
Staff have reviewed the situation with outside experts in this market and have also tried to contact cell carriers directly with no success. Given this, staff believe these proposed terms are the in the best interest of the City long-term.
C. Strategic Plan (Area of Focus)
NA
D. Fiscal Impact
The City budgeted for $28,000 of cell tower lease revenue in the Parks budget anticipating this likely scenario. However, even that amount is not guaranteed and likely high. Staff will monitor the revenue situation in 2025 and possible propose changes in 2026. It...
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