TITLE: Title
Authorization to Renew Lease Agreement for Communication Antenna Co-Location on Town Hall Tower
PURPOSE: AT&T (New Cingular Wireless PCS, LLC) has expressed interest in renewing their antenna co-location lease agreement for the Town’s telecommunications tower. The current lease will expire in 2017 and staff has been working with the applicant to negotiate a lease renewal and the proposed lease has been reviewed by the Town Attorney. The Board of Aldermen is requested to adopt the attached resolution authorizing the Town Manager to execute the lease agreement.
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DEPARTMENT: Manager’s Office, Town Attorney
CONTACT INFORMATION: Julie Eckenrode 919-918-7308, Bob Hornik
INFORMATION: N.C. G.S. 160A-272 requires Board approval of contracts leasing or renting town property. The proposed lease with AT&T is for five years with the possibility of automatic renewal for one additional five-year term. An additional requirement for such leases is that the Town provide public notice of the intent to enter into such a lease agreement. A notice was published January 16th, 2016 in the Chapel Hill News.
FISCAL & STAFF IMPACT: The contract stipulates an annual payment to the Town of $34,500 for the first year, plus an additional amount based on CPI in the following years for each year of the lease. Staff deems this lease amount to be appropriate for the size of the antenna. The total rental payments will not be less than $172,000 for the lease term.
RECOMMENDATION:r Town staff recommends that the Board authorize the Town Mnager to execute a renewal lease agreement with AT&T.