Title
Authorization to License City-owned Property at 424 W. Adams St. to Dish Wireless, L.L.C. (Ordinance S-48575)
Description
Request to authorize the City Manager, or his designee, to enter into a license with Dish Wireless, L.L.C., for communication equipment at 424 W. Adams St. Further request to authorize the City Treasurer to accept all funds related to this item. The license fee is $32,250 annually during the initial term.
Report
Summary
Dish Wireless, L.L.C. (Dish) will license approximately 150 square feet of roof space for cabinet equipment and to install three exterior wall mounted antennas at 424 W. Adams St. for communication equipment. The term of the license is for five years, with two additional five-year automatic renewals. The monthly license fee is based on $35 per square foot per year for rooftop space plus $750 per antenna per month for a total of $2,687.50, plus applicable taxes, and will increase annually by 3.5 percent. The license fee is within the range of market rents as determined by the Real Estate Division.
Dish is responsible for all costs related to construction, operation, and maintenance including but not limited to permits, utilities, and environmental compliance. The equipment will be secured and screened in accordance with zoning requirements. 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 of the license is five years. The license will automatically renew for two additional five-year terms, unless either party notifies the other in writing 60 days in advance of its intention not to renew.
Financial Impact
The annual license fee is $32,250, plus applicable taxes, during the initial term and will increase 3.5 percent annually. After the completion of the initial term, the City may, at its sole and absolute discretion, renegotiate the license fee to remain consistent with market standards.
Location
424 W. Adams St.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works and Finance departments.