City Council Agenda and Packet 2019 08 06

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11: City,/ im Louisville COLORADO • SINCE 1878 CITY COUNCIL COMMUNICATION AGENDA ITEM 5E SUBJECT: DATE: APPROVAL OF T-MOBILE CONTRACT AMENDMENT AUGUST 6, 2019 PRESENTED BY: NATHAN MOSLEY, DIRECTOR OF PARKS, RECREATION AND OPEN SPACE SUMMARY: In early 2016 with consultation with the City Attorney, the City provided the required notice pursuant to Sections 9 and 19 of the current lease agreement that T-Mobile would need to temporarily relocate their facilities during the expansion and renovation of the Louisville Recreation & Senior Center and then permanently relocate them at the conclusion of the project. The attached second amendment to the site lease for T-Mobile is to approve rent abatement due to expenses incurred by T-Mobile during the expansion and renovation of the Recreation & Senior Center. Pursuant to Section 9 of the current lease agreement, all direct expenses incurred by T-Mobile in the relocation of their facilities will be paid for by T-Mobile and abated from the rent until the full cost of the relocation is reimbursed. T-Mobile tracked their expenses throughout the project. Those expenses totaled $213,348 and were verified by the City's owner's rep, Dunakilly. FISCAL IMPACT: Currently, the city is receiving $1638 in monthly rent for the lease agreement. The rent increases annually based on the current lease agreement with T-Mobile. Rent abatement will be for 9 years and 5 months based on the attached rent spreadsheet. Monthly rent payments will resume in December 2028. Based on the annual escalators included in the lease agreement T-Mobile will be paying monthly rent of $1982 in 2028 and this will increase to $2181 in June of 2029. PROGRAM/SUB-PROGRAM IMPACT: Recreation RECOMMENDATION: City Council approve the second amendment to the T-Mobile lease contract. ATTACHMENT(S): 1. Second Amendment to Site Lease 2. Original Site Lease 3. Louisville — Rent Abatement — Rent Worksheet CITY COUNCIL COMMUNICATION 43