Memorandum

City of Lawrence

Legal Services Department

TO:	Toni Ramirez Wheeler, Director of the Legal Department David L. Corliss, City Manager
FROM:	John Jay Miller, Staff Attorney
CC:	Dave Wagner, Director of Utilities Cynthia Wagner, Assistant City Manager Diane Stoddard, Assistant City Manager Jonathan Douglass, Assistant to the City Manager
Date:	February 8, 2011
RE:	T-Mobile Request to Renew Lease for the use of the Water Tower and Property at 1815 Stratford  Road

T-Mobile has requested that the City extend the lease for the use of City property located at 1815 Stratford Road, Lawrence, Kansas.  The existing lease agreement expires on December 31, 2011.   T-Mobile wants to extend the lease before the end of 2011 by entering into a second amendment to the lease agreement that will add three additional 5 year terms to the original agreement with the first new term to begin in January of 2012.  The only changes to the existing agreement involve the length of term, rent and notification requirements. The installation of new telecommunications equipment is not part of T-Mobile’s request. 

T-Mobile and Staff discussed a rate increase and rent increase formula that will pay the City rent in the amount of $1,925.00 per month for the first 5 year term followed by $2,214.00 per month during the first renewal term and $2,546.00 per month during the second renewal term subject to Governing Body approval.  The City currently receives $1619.00 per month in rent. 

The history for the lease at this site is that the original lease was entered into on June 13, 1997, with APT Kansas City.  T-Mobile is a successor in interest to APT Kansas City.  The original lease was a five year term with two 5 year option periods.  The agreement was amended in May, 2006 to add a generator and transfer switch to the site. 

Staff is unaware of any concerns with T-Mobile about the use of the site or the payment of rent.  The Utilities Department has reviewed the request and does not object to a lease extension. Because no new equipment installations are requested and the site plan is not being amended, the Planning Department did not review this request.   

Action Requested: Staff requests the City Commission receive T-Mobile’s request and authorize the City Manager to execute a Second Amendment to Agreement for the Lease of City of Lawrence, Kansas Property at the 1815 Stratford Road site, if appropriate.  Proposed Lease Amendment.