10-08-2001 Council Packet - Laserfiche WebLink

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Gniup PtapoMt IbriSpnmPCSFaolin* at TIk OU Cntul Bar f\Mt CNS m OPENING STATEMENT In an efTort to pro\ide complete coverage of PCS telecomintmicatioiis services. Sprint PCS rsprinr) engineers have determined that a new' tdecommunications facility would be appropriate in ^e area which includes the property owned by the City of Orono and locat^ at 1355 Brown Road South (the old Crystal Bay post ofilce) Sprint telecommunications services have proven to be a vital pan of any community's communication needs and emergency response services. The addition of a new facility in this area will provide added and more complete coverage than is currently available. This added and enhanced coverage will benefit not only personal use but also emergency and rescue services in this area. The benefits to the landow*ner that assists Sprint m locating a tower are both civic and economic. The neighbors that surround your property will be directly benefited by the added telecommunications services and emergency services will benefit by having an alternate form of communication in times of need. In fact, the proposed location of this tower is from the many requests of neighbors and others in your area for inaeased Sprint coverage. From a fiscal standpoint, the landowner who leases property to Sprint will benefit by a steady stream of income for many years to come The economic b^efits the landowner will receive are not decreased by any costs. The Evaest Group, in its role as site acquisition and initial developer for new Sprint telecommunications facilities, takes care of all costs associated with zoning, construction and maintenance of the telecommunications facility. Additionally, no presence on the part of the landowner is required at any step in the City approval process. Simply slated, the City of Orono will receive $800 up front for an option and upon Sprint taking physical possession of the leased parcel, monthly rental pa>Tnems, w'ithoui any offset from expenses or fees. PROPOSAL SPECIFICATIONS T>’pically, the prospective landowner signs an option and lease, which allows The Everest Group, acting on behalf of Sprint, to take steps required by the City to erect a new telecommunications facilit>'. Following is a flowchan that describes the t>pical procedure and specifications for this particular telecommunications facility. The lease form that would be used would be similar to that lease executed betw een the City of Orono and Sprint for the Sprint facility on the Orono Water Tower near the Orono City Hall. • The Oprion: Sprint is offering to pay $800 for the right to exercise the lease described below. This is a one-time unconditional payment If SprintPCS docs not use the land for any number of reasons, the City of Orono will retain the option payment • The Lease: Sprint is offering to pay $800 per month for rent. The rental amount takes into consideration the cost that Sprint must incur in initially building the facility*. Typically, the term is for 5 years with 4 automatic renewal options of 5 years each. Monthly rent is increased at each renewal option by 15%. Following is a breakdown of the stream of lease payments and increases over the 25 year period: MOMTHLV iYEAR TOTAL YEARLY TOTAL IYEAR TOTAL 2J YEARPAYMEMTTERIiSPAYMEHTTERM PAYMENT TERM PAYMENT s 800.00 1 $ 9,600 00 S 48.000.00 $920.00 2 S 11,040.00 $ 55.200.00s1.058.00 3 S 12.69600 S 63.480,00s1,21670 4 S 14.600.40 S 73,002.00 $1,399.21 5 S 16.790.46 S 83.952 30 • 1 S 323,634.30