Title
Authorization to License City-owned Property Near Cave Creek Road and Deer Valley Drive, to Crown Communication, Inc. (Ordinance S-50197)
Description
Request to authorize the City Manager, or his designee, to enter into a license with Crown Communication, Inc. within a portion of City-owned property east of Cave Creek Road and north of Deer Valley Drive for communication equipment. Further request to authorize the City Treasurer to accept all funds related to this item. Annual revenue is $36,000 during the first year of term.
Report
Summary
Crown Communication, Inc., (Crown) will license approximately 2,500 square feet of land within City-owned property located east of Cave Creek Road and north of Deer Valley Drive. The license is for communication equipment co-locatable with three carriers, including an 85-foot monopole with nine antennas and six radios. Crown is responsible for all costs related to construction, operation, and maintenance including but not limited to a screen wall in accordance with zoning requirements.
The term of the license is for five years, with nine additional five-year automatic renewals. The license fee is $3,000 per month, plus applicable taxes, for the first year and will increase three percent annually thereafter, which is within the range of market rents as determined by the Real Estate Division. After the completion of the initial term, the City may renegotiate the license fee based on a market rate. The license will include insurance and indemnity provisions acceptable to the City's Risk Management Division and City Attorney. The license may be canceled pursuant to A.R.S. 38-511. The license may contain other terms and conditions deemed necessary by the City.
Contract Term
The initial term for the license is five years. The license will automatically renew for nine additional five-year terms, unless notified in writing by either party of the intention not to renew 60 days in advance.
Financial Impact
Annual revenue during the first year of the five-year term is $36,000, plus applicable taxes, and will increase three percent annually.
Location
East of N. Cave Creek Road and north of E. Deer Valley Drive.
Council District: 2
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Water Services and Finance departments.