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Consideration of approval of 25-year extension of T-mobile cellular antennae on the water tower at 10331 Watertown Plank Road
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Submitted by:
John Ruggini
Department:
Finance Department
A. Issue
The City of Wauwatosa took over ownership of the former County water tower in the Research Park at 10331 Watertown Plank Road in 2024. Since 2000, T-mobile has leased space on the tower for a cellular antenna and has proposed terms for a 25-year extension.
B. Background/Options
The City of Wauwatosa took over ownership of the former County water tower in the Research Park at 10331 Watertown Plank Road in 2024. Since 2000, T-mobile has leased space on the tower for a cellular antenna and has proposed maintaining the same terms for another 5 five-year terms (25 years total) with a 5% annual escalator. These terms are comparable with other lease agreements maintained by the City. The revenue is used to reduce the amount of water rates charged to customers.
C. Strategic Plan (Area of Focus)
Economic Development and Financial Resilience
D. Fiscal Impact
The current lease provides $55,343 of revenue for the water utility. The net present value of the lease is $1.6 million
E. Recommendation
I recommend approval of the extension of the lease with T-mobile for five 5-year terms.