Memorandum

City of Lawrence

City Attorney’s Office

TO:                  David L. Corliss, City Manager

                        Toni Ramirez Wheeler, City Attorney

FROM:            Randall F. Larkin, Senior Assistant City Attorney

DATE:             September 27, 2012

RE:                  Sixth Street Water Tower Lease with AT&T

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AT&T currently leases property from the City at the Sixth Street Water Tower for a communications facility. That lease will expire at the end of the year. Staff and AT&T have negotiated a renewal agreement, whereby AT&T will be able to add several additional antennas to the water tower. The City will receive an increase in rent to $2500 per month with a 3% escalator each year that the lease is in effect. The lease would commence January 1, 2013, and run for five years, until December 21, 2027. In addition, there would be two additional option periods of five years each. If extended, the lease will expire, at the latest, on December 31, 2027. The terms are consistent with lease agreements we have with other communications companies.

Action Requested

Authorize the City Manager to execute a Site Agreement permitting AT&T to continue to lease space on the City's Sixth Street Water Tower in accordance with the terms of that agreement.