REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Jennifer Villasenor, Director of Community Development
PREPARED BY: Bill Krill, Real Estate and Project Manager
Subject:
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Approve and authorize the execution of the First Amendment to the Schedule of Lease Property between the City of Huntington Beach and T-Mobile West LLC for the cellular antenna site located on the roof of Central Library
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Statement of Issue:
The City Council is requested to approve and authorize the Mayor to execute the First Amendment to the Schedule of Lease Property between the City and T-Mobile West LLC for the cellular antenna site located on the roof of the Central Library.
This Amendment will increase rent by 60%, add annual rent escalations of 4%, and include a one-time $5,000 administrative fee, aligning this long-term lease with current market conditions and ensuring the continued collection of revenue from a high-performing telecommunications tenant.
Financial Impact:
Under this Amendment, monthly rent will increase from $2,246 to $3,600 effective the month following execution, a 60% increase that brings the site's rate in line with current market standards. The Amendment also establishes annual rent escalations of 4%, exceeding the typical market averages of 3%. Additionally, T-Mobile West LLC will pay a one-time $5,000 administrative fee to offset City staff costs associated with the negotiation and execution of the Agreement. Over the potential extension period (through the initial term ending April 30, 2026, plus five optional five-year renewals), this lease is projected to generate approximately $1.9 million in revenue for the City. All funds will be deposited into General Account Fund 10000100.45100
Recommended Action:
recommendation
A) Approve the First Amendment to the Schedule of Lease Property between the City of Huntington Beach and T-Mobile West LLC; an...
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