RESOLUTION NO. 2024-13
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES AUTHORIZING
THE CITY MANAGER TO EXECUTE THE LETTER OF INTENT FROM TOWERPOINT
ACQUISITIONS, LLC, RELATED TO THE PREPAYMENT OF LEASE AGREEMENTS
WITH VERIZON, AND T-MOBILE, AND AUTHORIZING THE CITY MANAGER TO
NEGOTIATE THE LEASE PREPAYMENT AND TERM EASEMENT AGREEMENT WHEREAS, the City has two active cellular tower lease agreements for wireless communication facilities at a city-owned cellular sites at 700 5TH Street; and WHEREAS, the City Manager approved a Professional Services Agreement with SteepSteel, LLC (“SteepSteel”) to assist the City with negotiations and sale of the Verizon and T-Mobile lease agreements at the cellular sites; and
WHEREAS, the Contractor posted, solicited, and negotiated offers for the leases directly with professional cell tower lease buyers, after which multiple proposals were received, and of which all offers went to the best and final round of negotiation prior to recommendation; and WHEREAS, the proposals were reviewed by the Contractor and staff and the proposal from TowerPoint Acquisitions, LLC (“TPA V, LLC”) was determined to be the superior proposal; and WHEREAS, a tentative ground lease agreement and easement has been negotiated between the City and TPA V, LLC, a Delaware Limited Liability Corporation, for $1,500,000 for ninety-nine (99) years; and
WHEREAS, TPA V, LLC will also have the option to add 500 square feet of land area at the site, and, if added, TPA V, LLC will pay the City 60% of the revenue received from any customer who installs new equipment after closing.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Gonzales authorizes the City Manager to execute a Letter of Intent from TowerPoint Acquisitions, LLC, attached hereto as “Exhibit 1” and by this reference incorporated herein, related to the prepayment of lease agreements with Verizon and T-Mobile, and authorizing the City Manager to negotiate the lease prepayment and term easement agreement. The final draft documents will be brought back to the Council for consideration and approval.
PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 6th day of May, 2024, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Jose L. Rios, The Honorable Mayor
ATTEST:
Mary Villegas, Deputy City Clerk