Department
Real Estate and Asset Management
Requested Action (Identify appropriate Action or Motion, purpose, cost, timeframe, etc.)
title
Requesting approval of a Resolution approving the First Amendment to Lease Agreement between Fulton County, Georgia (Landlord) and New Cingular Wireless PCS, LLC (Tenant) for the lease of real property located at 460 Morgan Falls Road, Atlanta, Georgia; authorizing the Chairman to execute the First Amendment to Lease Agreement and related documents; authorizing the County Attorney to approve the First Amendment to Lease Agreement and related documents as to form and to make modifications thereto prior to execution. Effective upon BOC approval. (APPROVED UPON ADOPTION OF THE CONSENT AGENDA)
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Requirement for Board Action (Cite specific Board policy, statute or code requirement)
Pursuant to Fulton County Code (“FCC”) § 1-117, the Fulton County Board of Commissioners has exclusive jurisdiction and control over directing and controlling all the property of Fulton County, as they may deem expedient, according to law. FCC § 172-62 also permits the leasing of County-owned property for telecommunication towers upon approval by the Board of Commissioners and pursuant to the provisions of FCC § 172-62.
Strategic Priority Area related to this item
Open and Responsible Government
Commission Districts Affected
All Districts ☒
District 1 ☐
District 2 ☐
District 3 ☐
District 4 ☐
District 5 ☐
District 6 ☐
Is this a purchasing item?
No
Summary & Background
Scope of Work: New Cingular Wireless PCS, LLC is seeking approval from the Fulton County Board of Commissioners to modify the terms of its Lease Agreement for the County-owned real property located at 460 Morgan Fall Road, Atlanta, Georgia. The Term of the First Amendment shall commence on the Effective Date of the First Amendment, and shall expire on December 31, 2025 (the “First Extension Term”), and commencing on January 1, 2026, the Agreement will be automatically renewed, upon the same terms and conditions of the Agreement, for five (5) additional five (5) year terms (each an “Additional Term”). The Terms will automatically renew without further action by Tenant unless Tenant notifies Landlord in writing of Tenant’s intention not to renew the Agreement at least sixty (60) days prior to the expiration of the First Additional Term or any Additional Term.
New Cingular Wireless PCS, LLC, the Department of Real Estate and Asset Management (DREAM) and the Department of Emergency Management Services (E911), have negotiated mutually acceptable rental terms that include an increase to the annual escalation rate and the monthly rental rate, as well as an extension to the lease term.
The initial base monthly rental payment will be $2,250.00, as of the effective lease agreement commencement date and for all permitted renewal terms the annual rental rate will increase 2%, and the lease rental term will be automatically renewed, upon the same terms and conditions, for five (5) additional five (5) year terms. In addition to the Rent, New Cingular Wireless PCS, LLC agrees to also pay a lump sum consisting of underpayment rent due for each month during the period beginning January 1, 2021 through the effective date of the First Amendment, with both monthly and underpayment rent subject to an annual increase of 2%.
Community Impact: New Cingular Wireless PCS, LLC can avoid constructing an additional cellular antenna structure within the community by maintaining its equipment at this location.
Department Recommendation: The Department of Real Estate and Asset Management, DREAM recommends approving the First Amendment to Lease Agreement to formalize the negotiated rental terms with New Cingular Wireless PCS, LLC at 460 Morgan Falls Road in Sandy Springs, Georgia.
Project Implications: A market analysis for available antenna space for cellular communications in the surrounding area supports an increase in the monthly rental rate. The approval of the First Amendment to Lease Agreement is required to keep the current and future rental revenue and to maintain optimum cellular services within the community.
Community Issues/Concerns: None
Department Issues/Concerns: None
Fiscal Impact / Funding Source
Annual rental incomes and all payments to be received from New Cingular Wireless PCS, LLC will be deposited into Accounting Line 100-333-3333-5216.