Title
Resolution Authorizing the Execution of a Lease for a 3,160 sq. ft. Portion of Land Over City Owned Property Located at 1590 Briarfield Road, LRSN: 1000275 to Crown Communication LLC, for a Power Equipment Compound and Cell Tower
Purpose
PURPOSE/BACKGROUND:
New Cingular PCS, LLC, ("New Cingular"), a Delaware limited liability company, entered into a lease with the City of Hampton (the "City"), dated October 26, 2007, adopted by City Council on November 7, 2007, and effective on November 16, 2007 (the "Original Lease"), for a 1,600 sq. ft. portion of 1590 Briarfield Road (the "Leased Premises). On or about December 31, 2007, the Original Lease was amended by New Cingular's assignee Crown Communication, Inc. ("Crown, Inc."), a Delaware limited liability company, to expand the Leased Premises to 3,160 square feet. The Original Lease expired on November 16, 2012.
Crown Communication LLC ("Crown"), a successor to Crown, Inc., entered into a lease with the City effective on December 10, 2017, for the Leased Premises (the "Second Lease"). The Second Lease expired December 10, 2017, and Crown negotiated a new lease (the "Third Lease"). The Third Lease expires December 10, 2022.
The attached lease, the proposed "Fourth Lease", is for five years with an effective commencement date of December 10, 2022. Rent for the first year is $25,805.19 annually payable in advance with a 3% escalation. Crown will pay the City 30% of any rents obtained from subtenants (co-locators) on the cell tower.
City staff recommends approval of the Resolution. This matter was advertised pursuant to Virginia Code §15.2-1813.
Discussion:
See Purpose/Background above.
Impact:
See Purpose/Background above.
Recommendation:
Rec
Conduct public hearing and approve the Resolution.
Body
WHEREAS, the City of Hampton (the "City") owns a parcel of land at 1590 Briarfield Road (the “Property”);
WHEREAS, the City entered into...
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