Title
Resolution Authorizing the Execution of a Lease Renewal for an 85’ x 90’± Portion of City-Owned Property (LRSN 13003533), the Grant of a 36,174± Square Foot Ingress/Egress Easement, and the Grant of a 10,404± Square Foot Utility Easement Over City-Owned Property Located at 901 E. Little Back River Road in Gosnold’s Hope Park to ALLTEL Communications, LLC d/b/a Verizon Wireless, For a Power Equipment Compound and Cell Tower, Which are Already in Place
Purpose
PURPOSE/BACKGROUND:
The City of Hampton (“the City”) is the owner of 901 E. Little Back River Road, which is known as Gosnold’s Hope Park (the “Property”). In September 2004, ALLTEL Communications Inc., the predecessor to ALLTEL Communications, LLC d/b/a Verizon Wireless (“Verizon”) entered into a lease with the City for the construction and operation of a cell tower and a power equipment compound together with a grant of related access and utility easements on the Property.
The first lease expired in October 2009 and in March 2010 the City authorized a second five-year lease with Verizon. The second lease expired September 30, 2014 and in December 2014 the City authorized a third five-year lease with Verizon. The third lease expired December 31, 2019.
The City and Verizon have negotiated a fourth lease with a term of five years. If approved by the City Council, the commencement date of the third lease shall be January 1, 2020, with the term of the lease ending December 31, 2024. The annual rent for the first year of the lease will be $30,402.00. The annual rent increases at a rate of 3% per year. The full annual rent will be paid each year on the first day of the year.
The access and utility easements run concurrently with the lease term. The access easement affords Verizon ingress and egress to the site through Gosnold’s Hope Park. Under the terms of the Lease and Easement Agreement, Verizon is responsible for any damage or deterioration to the access easement caused by its use. The utility eas...
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