CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Adopt the resolution approving a lease agreement between the City of Naperville and Chicago SMSA Limited Partnership d/b/a Verizon Wireless regarding communications tower at 1800 S. Washington
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DEPARTMENT: Legal Department
SUBMITTED BY: Jennifer Bonner, Senior Assistant City Attorney
BACKGROUND:
On January 18, 1994, the City of Naperville (“City”) entered into an agreement with Chicago SMSA Limited Partnership c/o Ameritech Mobile Communications, Inc. (“Ameritech”). Under this agreement, Ameritech agreed to construct a cellular tower with an adjacent shelter space and to convey rights in those facilities to the City. The agreement established a 30-year term with a lump-sum payment of $330,000, along with two optional one-year renewal terms, each carrying an annual rate of $11,000. The agreement also required that revenue generated from any third-party agreement involving the cellular tower would be shared equally between the City and Ameritech on a 50/50 basis. In addition, the lease addressed the placement and operation of cellular equipment on the water tower located at 414 East Fifth Avenue. Pursuant to its terms, the agreement concluded on January 18, 2026.
DISCUSSION:
SMSA Limited Partnership, now doing business as Verizon (“Verizon”), contacted the City to negotiate a successor lease. The successor lease permits Verizon to continue operating its equipment on the existing cellular tower and within the associated shelter space. It establishes annual rent of $50,400 for the initial one-year term and the subsequent one-year renewal term, a rate that is consistent with what other wireless carriers pay for space on the cellular tower. The agreement also provides for a 15% rent increase at the start of each additional extension term and authorizes up to four additional extension terms, each lasting five years.
The successor agreement also grants the City the right to terminate at any time with two years’ prior notice, and it eliminates the prior requirement that the City share revenue with Verizon from third-party use of the tower. Finally, the agreement clarifies that the site previously located at 414 East Fifth Avenue is excluded, as Verizon no longer requires that lease space.
FISCAL IMPACT:
Corresponding increase in tower lease fees.