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Backup Documents 04/09/2024 Item #11C
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Hasse Jr. Community Park and direct the County Manager or designee to either: 1) take no action allowing the existing lease to expire on May 30, 2024, pursuant to Crown Castle's termination notice, and authorize the County Manager or designee to proceed with competitive selection of a wireless communication tower tenant at Max Hasse Community Park or; 2) update Ground Lease terms with Crown Castle Towers 06-2 LLC, a subsidiary of Crown Castle USA, and return to the Board for approval of the updated Ground Lease at a future meeting. Objective ♦ To consider alternatives for the Communication Tower site at The Max A. Hasse Jr. Community Park. ♦ 1) take no action allowingthe existing lease to expire on May 30, 2024, pursuant to Crown Castle's termination notice and authorize the County Manager or designee to proceed with competitive selection of a wireless communication tower tenant at Max Hasse Community Park or 2) update Ground Lease terms with Crown Castle Towers 06-2 LLC, a subsidiary of Crown Castle USA, and return to the Board for approval of the updated Ground Lease at a future meeting. LOCATION MAP - MAX A. HASSE JR. COMMUNITY PARK ra o-: i Or e r 11 i v l�. r i V AL - is •6" IL or [�1 �lFEI, • .ems '�' %:' .n � r7e�^'.� +R'Lx�y r _~ _ mil•. _ - _ y •b ,lam L : __ _ _, • . SITE LOCATION MAP - MAX A. HASSE JR. COMMUNITY PARK jv 04 ti r A k f � cl } J At ._.. .. IL Considerations Crown currently has an active lease with Collier County for the construction of a cell tower at the Community Park that pursuant to termination letter issued by Crown, expires May 30, 2024. The lease for the communications tower was established in June 2010. The tower has not been constructed and Crown has cited economic factors for the delay including the current annual rent of $78, 386 ($6, 532/monthly) . Crown issued a Termination of Ground Lease, effective May 30, 2024. Without Board action by May 30, 2024, the Ground Lease will automatically terminate. Considerations (cont.) Crown has expressed its desire to proceed with construction and has proposed renegotiating the lease terms to overcome these economic challenges. OPTION 1 - Crown proposes renegotiated terms: ♦ Reduce rent to $2,500 ($30,000/annually) with an 3% escalator, effective January 2024 • County may terminate if tower not constructed in 2 years. County termination remains the same. ♦ Retain Collier County public safety use on tower. Increase ground space from current 25' x 35' (875 sq ft) to at least 60' x 35' (2100 sq ft) . (Depending on buffering requirements additional ground space may be negotiated). Extend term an additional 30 years with would extend the term to 2071. Considerations (cont.) If renegotiation is elected by Board, staff recommends: ♦ Current rent of $6,532/month continues until tower is constructed and receives a certificate of completion thereupon the rent is reduced to a minimum of $3,000/month. ♦ If the tower is completed within 18 months following the Board's approval, Crown will receive a 100% credit of any rent paid in excess of $3,000 per month ($36,000 annually) dating back to the effective date. This credit will be applied towards future rent payments. ♦ Include terms for specified aesthetic guidelines to ensure that the tower meets the visual standards of the Community Park. Additional ground space may be negotiated to accomplish these goals. Crown continues to bear all costs associated with the construction of the tower such as zoning, permitting, design and construction. County standard terms such as insurance and indemnification terms, etc. to be included. Recommendation Direct the County Manager or designee to either: - 1) take no action allowing the existing lease to expire on May 301 2024, pursuant to Crown Castle's termination notice, and authorize the County Manager or designee to proceed with competitive selection of a wireless communication tower tenant at Max Hasse Community Park or; - 2) update Ground Lease terms with LLC, a subsidiary of Crown Castle Board for approval of the updated meeting. Crown Castle Towers 06-2 USA, and return to the Ground Lease at a future Questions? �63��2)'YA�ID�G�JC A Olr �Iu�OC�IG�(�C:OOL Lu1C�7GJ�(:�11�10GI7�UIn I ��Ail (:O�Ll3GOOUIrJ1�11 LEI LL�a7�/s l^ Ln�JULIIn�JC� GOOLuJLtaJULn�1LIG/s l^ 7�L101nl 7�0 L6g8 gJ lj C6LL1jLIL GOULn�J7l11 ��CC3L3NJQG31�0�dd 0 19 s 86 � 42 club 'Shadow — — - — — - w° '.,. mokake IVo,,d ;ULLI L H $3 o by rr, nke�M 75 Peer.± 40 $7 29 41 w - 9eSp in9s 74 48 4 — w�a 4 5z T 58 38 85 O 83 �,,,� ..36 37 clu 55 „39 ,22 71 84 s Pelican Bays 30 12 A Na!•I`:a^80 FI„„d, a .,I 3 32 2U m a O F�Mner hbn 35 gq- 15 33 0 8 rv�nlN �I a 0 23 `° 31 49 a 87 YIc Crop°NaF'I-? 27 16 90 41 51 Y9 (7 43 25 nr 26 V �, si Payuna G © 63 s.ely F.— 'A 45 504 or 77 OPe ay ure ,n 65 swans Fores I Fakalnk hee $9 a StI Preserve 64 sam Pay O2. cmi^or 67 .le 41 29 14 `S. 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