Proposed Ground Lease-
Rahilly Park Wireless Facility
Report in Brief
Ground
License
Agreement
for Rahilly
Park
In alignment
with
approved
Conditional
Use
Generates
new funding
for parks &
recreation
Consider
revenue use
for
improvement
and
maintenance
Background
Application
reviewed by
Planning
Commission
Commission
approved → decision
appealed
Council denied
appeal on basis that
application met
required CUP
conditions
Negotiations with
AT&T led to
proposed lease
agreement terms
and conditions
Goals of
Agreement
• Request site plan incorporate added
utility to existing features
• Obtain one time Capital Improvement
Funds to address existing safety and
operational concerns in host Park
• Ensure ongoing revenues will be used
to help cover rising costs of routine
maintenance and ongoing repairs in
City park system
Lease Terms
• Tenant: New Cingular Wireless PCS, LLC
• Term: 5 years, with 4 optional 5-year
renewals
• One-time Rahilly Park Capital Fee: $30,000
• Lease rate: $3,000/month + 3% annual
increase
• Potential 25-year revenue: ≈ $1.33 million
Use of Ongoing
Revenue
Option 1 – Dedicate all to Rahilly Park
to increase beautification and
maintenance
Option 2 – Split between Rahilly Park
& Citywide Community Parks
Option 3 – Add to Parks Capital Fund
(use at City Council discretion with no
dedication to specific park(s))
Suggested
Investments
$30,000 one-time
improvements at Rahilly Park
– $20,000 → Picnic Shelter upgrades
– $10,000 → Walking path repairs
– Continued LED lighting upgrades
Fiscal Impacts
Community
Impacts
• $30,000 one-time capital improvements
• $27,000 revenue FY25 (Oct–June)
• ≈ $36,000/year thereafter (with 3%
increases)
• ≈ $1.33M total revenue over 25 years
• Capital Improvements to address
existing park disrepair
– Playground equipment, shelter, walking paths,
amenities, ADA access to playground
• Increased level of effort for ongoing
maintenance and operations
– Irrigation repairs, restroom maintenance,
reservation preparations
• Safer conditions
– Better lighting, security cameras, timely
playground repairs
Conclusion
Recommendations:
– Approve lease agreement
– Authorize City Manager or designee to
execute necessary documents
– Appropriate $30,000 one-time revenue
(Capital Fund)
• Use for Rahilly Park Improvements
– Appropriate $27,000 FY25 revenue (Oct–
June)
• Use to increase level of maintenance
effort at Rahilly Park
The Lease Agreement ensures that use of the park to expand Wireless Services equates to ongoing investments back into the park system.
The agreement creates one time revenue to address immediate needs at Rahilly Park and new ongoing revenues to address levels of maintenance not currently available.