Report to City Council
ID: 26-0356 Page 1
TO: Mayor and City Council
Mayor and City Council Acting in its Capacity as
President and Members of the Board of Directors of
the Moreno Valley Community Services District (CSD)
FROM: Jeremy Bubnick, Parks & Community Services
Director
AGENDA DATE: October 6, 2026
TITLE: FIRST AMENDMENT TO THE PCS SITE
(TELECOMMUNICATIONS LEASE) AGREEMENTTOWNGATE PARK (REPORT OF: PARKS & COMMUNITY SERVICES) (DISTRICT 1)
TITLE SUMMARY: First Amendment to the PCS Site Agreement for the Lease of a Portion of Property at Towngate Park with STC ONE, LLC to Accommodate Their Telecommunications Cellular
Tower and Equipment (Site ID No. RV-35-XC-94(D))
DISTRICT: District 1
Recommendation(s)
That the Community Services District:
1. Approve the First Amendment to the Parks and Community Services (PCS) Site Agreement ("Agreement") with Lessee STC ONE, LLC, a Delaware Limited Liability Company, for continuation of their right to lease a portion of Towngate Park property from the City of Moreno Valley Community Services District for the purpose of retaining and maintaining their Telecommunications Cell Tower and related equipment at this property site. This First Amendment to the Agreement includes revision of certain terms of the Agreement as outlined in the First Amendment; and
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2. Authorize the City Manager/Executive Director of the Moreno Valley Community Services District (CSD) on behalf of the City/CSD to execute the First Amendment to the Agreement with Lessee, STC ONE, LLC, a Delaware Limited Liability Company, to extend the renewal terms of the Agreement for an additional six (6) five-year (5-year) terms ("Renewal Terms") through October 22, 2056, along with additional modifications to the Agreement as more specifically outlined in the First Amendment.
SUMMARY
This report recommends that the City Council in its capacity as the Board of Directors of the Moreno Valley Community Services District (CSD), hereafter referred to as “CSD” (“Lessor”), authorize the City Manager in their capacity as Executive Director of the Moreno Valley Community Services District to execute a First Amendment to the PCS Site Agreement with Lessee, STC ONE LLC, a Delaware Limited Liability Company, by and through its Attorney In Fact, Global Signal Acquisitions III LLC, a Delaware Limited Liability Company, to amend and extend the renewal terms of the Agreement for an additional six (6) five-year (5-year) Renewal Terms through October 22, 2056, along with certain additional rate and term modifications as more specifically outlined within the First Amendment to the Agreement.
DISCUSSION
Representatives of Lessee STC ONE, LLC met with Parks and Community Services to review and discuss their request to amend and extend the renewal terms of the PCS Site Agreement with STC ONE, LLC to continue to lease a portion of real property located at 13051 Elsworth Street, Moreno Valley, CA 92553, known as Towngate Park (Site ID No.
RV-35-XC-94(D)) as more particularly described in Exhibit A to the PCS Site Agreement to accommodate Lessee’s continued lease use of the property site (“Site”) for the ongoing operation of their Telecommunications Cell Tower and related equipment.
Due to increased demand for telecommunications services resulting from the proliferation of personal communication devices, the use of cell tower facilities is necessary to meet consumer demand. Parks and Community Services found that cellular service providers continue to need use of property sites to operate cellular facilities and are willing to work with other broadband carriers to accommodate the public’s service needs. The original executed PCS Site Agreement was entered into with COX PCS Assets L.L.C., a Delaware Limited Liability Company, on October 23, 2001. STC ONE, LLC, a Delaware Limited Liability Company, is the current Lessee under the Agreement as successor in interest to the Original PCS Site Agreement. Through its Attorney in Fact, Global Signal Acquisitions III LLC, a Delaware Limited Liability Company, STC ONE LLC is proposing certain revised terms to the PCS Site Agreement.
All terms of the Original PCS Site Agreement entered into on October 23, 2001, will remain in full force and effect, except for those portions modified by this First Amendment.
The proposed revisions to the Agreement, as included in the First Amendment, include revision of certain defined capitalized terms that would replace former Lessee, “Cox” with “Lessee” and “Owner” with “Lessor”. Lessee also requests to extend the Agreement’s ID: 26-0356 Page 3
Renewal Terms for an additional six (6), five (5) year Renewal Terms, which would constitute a total of ten (10) five-year (5-year) Renewal Terms for this Agreement with rental rates to be adjusted during the sixth Renewal Term, from October 23, 2026, to October 22, 2031, to Seven Hundred and Fifty Dollars ($750.00) per month and not subject to an annual escalation during this Renewal Term. At the end of the sixth Renewal Term, starting October 23, 2031, the monthly rental rate will increase to Three Thousand Dollars ($3,000.00) per month and thereafter shall increase annually by a rate of either CPI based on the Riverside-San Bernardino-Ontario-Index CPI-U, all items for 12 months, or three percent (3%) of the rent payable for the immediately preceding month, whichever is greater.
The temporary reduction in rent is intended to help support the continued viability of the Site. The cell tower has been unoccupied for more than two years, during which time STC ONE, LLC has not received carrier revenue from the Site, while the existing PCS Site Agreement is approaching expiration. Reducing the rent during the next five-year (5- year) Renewal Term will provide STC ONE, LLC an opportunity to recover a portion of those losses and improve the marketability of the Site to prospective carriers. Extending the PCS Site Agreement for an additional thirty (30) years also provides long-term site control that potential carriers typically seek when considering whether to locate equipment at a site, which may improve the likelihood of the tower becoming occupied again and generating future lease revenue for the City/CSD.
Lessee also agrees to pay a monthly graffiti removal and landscape maintenance fee (“Maintenance Fee”) in the amount of One Hundred Dollars ($100.00) per month on the Commencement Date (October 23rd) following approval of this First Amendment and the first (1st) of each month thereafter for the remaining terms of the Agreement as First Amended. This Maintenance Fee shall increase annually on the anniversary date of the Commencement Date of the Agreement at a rate of either CPI based on the RiversideSan Bernardino-Ontario Index CPI-U all items for the preceding 12 months, or three percent (3%) for the immediately preceding month, whichever is greater.
Additionally, Lessee requests, per this First Amendment, to have the sole discretion to assign its interest in the Agreement to sublease use of the Site, its easements and/or improvements to a third party of their choosing. Lessee shall provide Lessor with a written notice within sixty (60) days after such assignment or sublease takes effect. In consideration for the right to exclusively use and sublease the Site, Lessee agrees, per the terms of the First Amendment, starting after October 23, 2031, if Lessee subleases, licenses, or grants a similar right of use or occupancy in the Site to an unaffiliated third party, not already a subtenant on the Site (“Future Subtenant”) Lessee agrees to pay Lessor fifty percent (50%) of the rental, license, or similar payment actually received by Lessee from Future Subtenant (“Future Subtenant Rent”), excluding tax reimbursement, construction and/or installation costs, and revenue share reimbursement. Payment of the 50% Future Subtenant Rent shall be paid to the Lessor within thirty (30) days after receipt by Lessee. Non-payment by Future Subtenant shall not be considered an event of default by the Lessee. There is no expressed or implied obligation of the Lessee to sublease.
Each calendar year, Lessor may request from Lessee a business summary report of Future Subtenant rents for the preceding twelve (12) month period.
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Finally, Lessee shall be provided with a Right of First Refusal if Lessor receives an offer for purchase of fee title, an easement, a lease, a license, or any other interest in the Site, including interest in the PCS Site Agreement.
ALTERNATIVES
1. Approve and authorize the recommended actions as presented in this staff report.
Staff recommends this alternative, as it would result in continued potential revenue for the CSD.
2. Do not approve and authorize the recommended actions as presented in this staff report. Staff does not recommend this alternative as it would result in a loss of potential revenue to the CSD.
FISCAL IMPACT
There is no fiscal impact with the recommended actions.
The lease rent and the maintenance fee will be credited to Zone A Parks.
Minimum Revenue (1st Year)
Rental (Account No. 5011-50-57-35210-463080)……………………………. $ 9,000.00 Maintenance (Account No. 5011-50-57-35210-501000)…………………….. $ 1,200.00 Total Minimum(1st Year)………………………………………………………. $10,200.00
NOTIFICATION
Posting of the agenda.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Sharon Goodale Jeremy Bubnick
Management Analyst Parks and Community Services Director Concurred By:
Daniel Monto
Parks and Landscape Services Division Manager
CITY COUNCIL GOALS
Revenue Diversification and Preservation: Develop a variety of City revenue sources and policies to create a stable revenue base and fiscal policies to support essential City services, regardless of economic climate.
CITY COUNCIL STRATEGIC PRIORITIES
None
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Report Approval Details
Document Title: STAFFREPORT_PCS_1ST AMENDMENT TOWNGATE
PARK_.docx
Attachments: - Exhibit B.pdf
- Exhibit A_.pdf
Final Approval Date: Sep 30, 2026
This report and all of its attachments were approved and signed as outlined below:
Jeremy Bubnick
Anna Chacon
Felicia London, MPA
Launa Jimenez
Brian Mohan
Patty Rodriguez