Title
Approving an ordinance on second reading with the caption reading: An ordinance authorizing the lease of City property located along Kingston Lacy Boulevard, Pflugerville; providing cumulative, repealer and severability clauses; providing for open meeting and establishing an effective date.
Summary
The City currently owns a tract of land along Kingston Lacy Boulevard across from Highland Park Elementary that was conveyed to the City previously to potentially be an elevated water storage tank site. The City did not use this site for the eventual Heatherwilde Elevated Storage Tank that is along Wilke Ridge as the property owned by the City on Kingston Lacy was too small for an elevated storage tank. The City currently has no plans to use this property as it is limited in size and is adjacent to land that is already being utilized.
This lease will allow the tenant to construct a monopole tower that will be used to mount and install cellular communications equipment in an area of Pflugerville that experiences a gap in cellular coverage. While the City does not control who the tenant will sublease the tower space to, it is assumed that the larger cellular carriers will be installing equipment on the tower after it is constructed. This lease has a 50-year term which ensures that the tenant can recover the capital costs to construct the tower. The rental rate for this property is set at $1,200/monthly for the first 5-year term and increases by 5% for every renewal period. As this portion of the property was conveyed to the water and wastewater utility and it is not planned to be used for any future infrastructure needs, this provides a rental revenue on a parcel of property that was not going to be utilized.
Prior City Council Action
City Council approved the ordinance on first reading on January 28, 2025
Deadline for City Council Action
February 11, 2025
Funding Expected: Revenue _X_ Expenditure __ N/A __
Budgeted Item: Yes __ No __ N/A _X_
Amount: $14,400/annually
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A __ Required _X_ Date Completed: _1/11/2025___
Supporting documents attached:
Lease - Vertical Bridge
Ordinance
Recommended Action
Approve the ordinance on second reading.