Title
CMS Cell Tower Lease Renewal - Quail Hollow Middle School
Action
ACTION:
Decline the County's Statutory Right of First Refusal on a portion of CMS-owned property at Quail Hollow Middle School (Tax Parcel 209-201-04) to allow Charlotte-Mecklenburg Board of Education to enter into a cell tower lease amendment with Alltel Corporation d/b/a Verizon Wireless
Staff Contact: Jacqueline McNeil, Real Estate Management Director
Bob Sorrell, Charlotte-Mecklenburg Schools
Presentation: No
BACKGROUND/JUSTIFICATION:
Alltel Corporation currently leases land at Quail Hollow Middle School for a cell tower. That lease is scheduled to end August 14, 2031. Charlotte-Mecklenburg Board of Education (CMBE) and Alltel wish to enter into a lease amendment that will extend the lease for an additional ten (10) years and continue the current lease rate of $6,057.81 per month. To do so, the County must decline its statutory first opportunity to acquire any school owned real estate that is proposed for disposition per North Carolina General Statute (NCGS) 115C-518(a). The County's Asset and Facility Management Department has determined that the County has no need for the subject property during the term of the proposed lease amendment. The business terms of the lease amendment between CMBE and Alltel are as follows:
Property - One (1) 60' x 60' tract of land and one (1) 20' x 20' tract of land at Quail Hollow Middle School
Term extension - Two (2) additional five (5) year options after the expiration of the current term (expires August 14, 2031)
Rent - $6,057.81 per month
Escalation - 2% increase every year on the anniversary of the lease commencement date
Maintenance - The tenant is responsible for all repairs and maintenance of the leased space
Termination - Either the Landlord or Tenant may terminate the lease for any reason or no reason by providing six (6) months advance written notice
Sub-lease - Tenant is allowed one (1) user of the property. For any additional users of the property besides the Tenant, the Tenant shall compensate Landlord with an additional one thousand seven hundred ($1,700) per month
Insurance - The Tenant shall maintain a public liability and property damage policy in the amount of $5,000,000 per single event and an automobile liability in the amount of $2,000,000 per single event
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
N/A