STAFF REPORT
City of Lancaster
CC
5 09/08/26
TN
Date: September 8, 2026
To: Mayor Parris and City Council Members
From: Sonya Patterson, Parks, Arts, Recreation, And Community Services Director Subject: T-Mobile West Tower LLC/Crown Castle Intent for Early Communications Site Lease Amendment
Recommendation:
A. Approve the Agreement to Amend Lease for the Communications Site Lease Agreement with T-Mobile West Tower LLC/Crown Castle.
B. Authorize the City Manager, or his designee, to execute all contracts and associated documents, including, but not limited to, the Agreement to Amend Lease, subject to City Attorney approval.
G.C. Section 84308: No
Fiscal Impact: Effective June 1, 2035, the city will see an increase in monthly rent revenue. The monthly rent will escalate by 10% of the prior month's rent, with subsequent adjustments continuing as defined in the Lease. In addition to the ongoing monthly revenue, the city will receive a one-time signing bonus of $10,000.00 upon execution of the Lease Amendment.
Background:
The City of Lancaster (Lessor) and T-Mobile West Tower LLC, a Delaware limited liability company, by CCTMO LLC, a Delaware limited liability company (Lessee), are parties to a Communications Site Lease Agreement dated August 24, 2004, for a portion of City-owned property. Section 4 of the existing Lease provides for an initial term of five (5) years, followed by five (5) additional five-year renewal terms, setting the current final lease expiration date as May 31, 2035.
The proposed lease extension agreement negotiated with T-Mobile provides direct financial gains and long-term stability for City-owned property. Under the terms of this one-time offer, the 10% rent increase taking effect on June 1, 2035, is not based on a predetermined formula; rather, it serves as an incentive to extend the lease through May 31, 2060. This one-time 10% adjustment— along with the $10,000 signing bonus—replaces the standard 3% annual escalation that would otherwise occur on that date under the existing contract terms. Following this single 10% adjustment, regular lease escalation terms will resume, securing optimized revenue generation for the City.
The council’s approval of the proposed amendment to the Lease Agreement will also grant T- Mobile the right of first refusal, limited to the currently leased area.
The proposed amendment also includes standard language acknowledging that the closing of the transaction is subject to T-Mobile's discretionary due diligence review and final underwriting approval. T-Mobile retains the right to terminate the Agreement at any time prior to closing, at its discretion, without incurring any damages or liability, by providing written notice to the City. The City, as Lessor, acknowledges its commitment to proceed with the transaction in good faith and to cooperate fully with T-Mobile to achieve a successful closing. The City also agrees not to sell, lease, or otherwise transfer or encumber the leased premises, or to engage in discussions with any third parties regarding the property, until the transaction with T-Mobile is closed.
The proposed amendment to the Communications Site Lease Agreement with T-Mobile West Tower LLC provides for a significant extension of the lease term, a signing bonus, and a rent increase, which will benefit the City. While T-Mobile retains the right to terminate the agreement prior to closing, the terms outlined in the amendment represent a positive outcome for the City's long-term revenue generation from this property.
SP: AC
Attachments:
1. First Amendment to Communications Site Lease Agreement
2. Memorandum of First Amendment to Communications Site Lease Agreement