STAFF REPORT
City of Lancaster
Date: October 13, 2026
To: Mayor Parris and City Council Members
From: Sonya Patterson, Director – Parks, Arts, Recreation, & Community Services
Subject: Crown Castle Cell Tower Site BU# 878015 Lease Agreement Second Amendment at Samaritan Purse Park
Recommendations:
1. Approve the lease agreement amendment with STC ONE LLC, a Delaware limited liability company, for the wireless communications cell tower located at Samaritan’s Purse Park, 44501 North 5th Street East, Lancaster, CA 93535, also known as BU# 878015.
2. Authorize City Manager, or his designee, to sign all agreements and associated documents.
G.C. Section 84308: No
Fiscal Impact:
Temporarily reduces monthly lease revenue to $500.00 effective January 1, 2027, but successfully prevents the immediate decommissioning of the site, safeguarding a future rental restart of $1,980.00 per month and a 3% annual escalation upon new subtenant construction at zero operational cost to the City.
Background:
The original Communications Site Lease Agreement (Ground) was executed on August 8, 2000, between the City of Lancaster (Lessor) and Cox PCS Assets, LLC (Original Lessee), with an initial five-year term commencing October 18, 2000. STC One LLC subsequently became the Lessee as successor in interest to the Original Lessee.
The agreement was first amended on March 30, 2009 ("First Amendment") by a former City Manager, which restructured the terms to allow for eight extensions of five years each, establishing a final lease extension expiration date of October 17, 2045. STC One LLC has exercised five of these Renewal Terms, leaving a balance of seven Renewal Terms under the current structure.
Although the cell tower is currently vacant, Lessee remains committed to maintaining the infrastructure and actively marketing the site to prospective wireless carriers. If executed, the Second Amendment would prevent the site from being decommissioned (eliminating a valuable municipal asset and terminating all future revenue).
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The key terms of the proposed Second Amendment include:
• Rent modification commencing January 1, 2027, the current rent will be reduced to $500.00 per month. Upon the first day of the first full month following the commencement of installation of improvements by a future subtenant, the rent will resume at $1,980.00 per month.
• Escalation adjustment will be reduced to 0% during the vacancy period. Commencing on the first October 1st following the rental restart date, the monthly rent will increase by a fixed 3% annually, replacing all prior escalation structures. • Lessor will provide written notice to the Lessee within 60 days after a new subtenant lease or license is fully executed. Effective January 1, 2037, if there are no subtenants or pending subtenant applications on the premises, the City retains the right to terminate the agreement at any time by providing 12 months’ prior written notice (provided a rental restart does not occur within that 12-month window).
• The Second Amendment adds four additional renewal terms of five years each, extending the final lease expiration date from October 17, 2045, to October 17, 2065. • The City grants the Lessor right of first refusal if the City intends to accept an offer to sell the lease, an easement, a license, or the leased area to any entity that owns towers or acquires lease interests.
By approving this amendment, the City of Lancaster safeguards a continuous revenue stream, retains long-term control over the site's tenancy, and ensures the cell tower remains actively maintained and marketed at no cost to the municipality.
Attachments:
1. Second Amendment to Communications Site Lease Agreement
2. Memorandum Of Second Amendment to Communications Site Lease Agreement (Ground)