PISMO BEACH CITY COUNCIL AND
PUBLIC FINANCING AUTHORITY BOARD OF
DIRECTORS
STAFF REPORT
Agenda Item #12.C
Meeting Date: June 17, 2025
TITLE:
T-Mobile Cell Tower Lease Agreement Amendment at 760 Mattie Road RECOMMENDATION:
1. Adopt a Resolution of the City Council of the City of Pismo Beach authorizing the City Manager to execute Amendment #1 to the Lease Agreement with VB-S1 Assets, LLC (T-Mobile) for operation of a cell tower at 760 Mattie Road; and
2. Adopt a Resolution of the Board of Directors of the Pismo Beach Public Financing authority approving Amendment #1 to the Lease Agreement between the City of Pismo Beach and VB-S1 Assets, LLC (T-Mobile) for operation of a cell tower at 760 Mattie Road.
DISCUSSION:
On June 5, 2012, the Board of Directors of the Pismo Beach Public Financing Authority (PFA) adopted a resolution that authorized the Executive Director to enter into a site lease agreement with T-Mobile West LLC for the placement of a wireless communications antenna with equipment in the parking lot of City Hall located at 760 Mattie Road. Further, the City Council adopted a resolution that authorized the City Manager to place the equipment at the site. The antenna still exists as the flagpole in the center of the planter island.
The City currently receives $2,815.90 per month for the site lease agreement. The maximum (extended) term of the agreement is 25 years, which is the year 2037.
Currently, the agreement is in its third five-year renewal period.
In July 2023, T-Mobile requested to meet and discuss an expansion of its existing equipment, by 113 square feet (SF) to better enable the transmission and reception of radio communications signals. Currently, T-Mobile equipment occupies 460 SF, which may increase to approximately 573 SF if the amendment is approved. In exchange for the additional 113 SF, staff negotiated an additional $932.27 per month to be paid to the City.
If approved, the new monthly lease payment to the City will equal $3,748.17 and become due and payable the first month after construction is complete. No other portion of the site agreement will change.
Both the City Council and the PFA Board of Directors must take action on this item because the PFA leased City Hall from the City for the issuance of bonds in 1994 for improvements to City Hall, and the City is the owner of the property where the antenna exists.
Council Agenda 6-17-2025 12.C-1
If the amendment (Attachment 3) is approved, T-Mobile will work with the Community Development Department and Public Works Department to obtain all necessary approvals and permits for the installation of the additional equipment. Because the overall impact of the equipment expansion is underground, with minimal above ground impact, staff anticipates an administrative modification of the existing permit (CDP/CUP P12- 000020). This may change if, during the plan review, it is determined that the requested changes are beyond staff’s discretionary authority, in which case the request will be scheduled for further review by the Planning Commission.
While it is still preliminary, the Figures 1 through 3 highlight the location of the project and possible screen options for the above ground improvements.
Figure 1. Existing Planter
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Figure 2. Proposed Planter
Council Agenda 6-17-2025 12.C-3
Figure 3. Screening Options
Conclusion and Recommendation
In order to permit the continued operation of the communications facility at City Hall, staff recommends that the City Council and the PFA Board of Directors each adopt a Resolution (Attachments 1 and 2, respectively) approving the amendment to the T- Mobile Cell Tower Lease Agreement.
FISCAL IMPACT:
In the month following the installation of the improvements the monthly rent will increase by $932.27, which will equal a new monthly rent amount of $3,748.17. This increase will result in an estimated additional $11,187.24 General Fund revenue in each year of the agreement. If the amendment is approved, the revenue received will increase by $5,733.47 in FY 2026 and $11,662.73 FY 2027.
ATTACHMENTS:
1. City Council Resolution
2. Public Financing Authority Resolution
3.Amendment No. 1
4. Original Site Lease Agreement
Submitted by: Mike James, Assistant City Manager
City Manager/Executive Director Approval:
Council Agenda 6-17-2025 12.C-4
RESOLUTION NO. R-2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT #1 TO THE LEASE AGREEMENT WITH VB-S1 ASSETS, LLC (T-MOBILE) FOR OPERATION OF A CELL TOWER AT 760 MATTIE ROAD
WHEREAS, on June 5, 2012, the City Council authorized the City Manager to sign a site lease agreement with T-Mobile West LLC to place a wireless communications antenna with equipment in the parking lot of City Hall located at 760 Mattie Road; and WHEREAS, the Board of Directors of the Pismo Beach Public Financing Authority concurrently authorized its Executive Director to sign the Lease Agreement; and WHEREAS, in 2023, T-Mobile requested to expand on its existing equipment to better enable the transmission and reception of radio communications signals; and WHEREAS, the additional space needed for the expansion is approximately 113 square feet for a total square footage of 573; in exchange for the additional square footage, T- Mobile will increase its monthly lease payment to the City by $932.27; and WHEREAS, T-Mobile will be required to work with the Community Development and Public Works Departments to pursue and obtain all necessary approvals and permits for the installation of the additional equipment.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Amendment #1 to the Lease Agreement with VB-S1 Assets, LLC (T-Mobile), in substantially the form attached to staff’s report dated June 17, 2025, for operation of a cell tower at 760 Mattie Road.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 17th day of June 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Attachment 1
Council Agenda 6-17-2025 12.C-5
IN WITNESS WHEREOF, I have hereunto set my hand and official seal of the City of Pismo Beach on _______________________.
________________________
Erica Inderlied, City Clerk
Attachment 1
Council Agenda 6-17-2025 12.C-6
RESOLUTION NO. PFA-R-2025-XXX
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PISMO BEACH PUBLIC FINANCING AUTHORITY APPROVING AMENDMENT #1 TO THE LEASE AGREEMENT BETWEEN THE CITY OF PISMO BEACH AND VB-S1 ASSETS, LLC (T-MOBILE) FOR OPERATION OF A CELL TOWER AT 760 MATTIE ROAD WHEREAS, on June 5, 2012, the Board of Directors authorized the Executive Director to sign a consent agreement with T-Mobile to place a wireless communications antenna with equipment in the parking lot of City Hall located at 760 Mattie Road; and WHEREAS, the Pismo Beach City Council concurrently authorized its City Manager to sign the Lease Agreement; and
WHEREAS, in 2023, T-Mobile requested to expand on its existing equipment to better enable the transmission and reception of radio communications signals; and WHEREAS, the additional space needed for the expansion is approximately 113 square feet for a total square footage of 573; in exchange for the additional square footage, T- Mobile will increase its monthly lease payment to the City by $932.27; and WHEREAS, T-Mobile will be required to work with the Community Development and Public Works Departments to pursue and obtain all necessary approvals and permits for the installation of the additional equipment.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Pismo Beach Public Financing Authority hereby authorizes the Executive Director, acting in the Director’s capacity as Pismo Beach City Manager, to execute Amendment #1 to the Lease Agreement with VB-S1 Assets, LLC (T-Mobile), in substantially the form attached to staff’s report dated June 17, 2025, for operation of a cell tower at 760 Mattie Road.
UPON MOTION OF Board Member , seconded by Board Member , the foregoing resolution was adopted by the Board of Directors of the Pismo Beach Public Financing Authority this 17th day of June 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Attachment 2
Council Agenda 6-17-2025 12.C-7
Ed Waage, Chair Erica Inderlied, Board Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and official seal of the City of Pismo Beach on _______________________.
________________________
Erica Inderlied, Board Clerk
Attachment 2
Council Agenda 6-17-2025 12.C-8
1 Site Name: Pismo
Site Number: US-CA-7059
FIRST AMENDMENT TO SITE LEASE WITH OPTION
THIS FIRST AMENDMENT TO SITE LEASE WITH OPTION (this “Amendment”), dated as of this _____ day of _____________________, 202__ (the “Effective Date”), by and between City of Pismo Beach (the “Landlord”), and VB-S1 Assets, LLC, a Delaware limited liability company (the “Tenant”), recites and provides:
RECITALS
WHEREAS, Landlord is the fee owner of certain real property located in San Luis Obispo County, California, as more particularly described on Exhibit A (the “Property”).
WHEREAS, Tenant, by way of assignment, is the tenant under that certain Site Lease With Option by and between Landlord and T-Mobile West LLC, a Delaware limited liability company, dated as of August 24, 2012 (as previously assigned and as further amended herein, the “Lease”). (the “First Amendment” and together with the Original Lease, as assigned and as further amended herein, collectively, the “Lease”).
WHEREAS, Landlord leases to Tenant a portion of the Property, as more particularly described on Exhibit B (the “Premises”).
WHEREAS, Tenant owns, operates, and maintains one or more wireless communications towers, equipment, shelters, and other associated improvements on the Premises (“Improvements”).
WHEREAS, Landlord and Tenant now desire to amend the Lease as more particularly provided below.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual agreements set forth below and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows.
1.Defined Terms; Recitals. Capitalized terms used but not defined herein shall have the meanings given to such terms in the Lease. The recitals set forth here and above are true and correct in all respects and are incorporated herein by reference.
2. Expansion of the Premises. Tenant requires an expansion the existing Premises.
The Premises is hereby expanded from [(6’-4” x 4’-1”)] to: [Security Cage (6’6” x 4’9” x 3’2”) + Concrete Pad (6’6” x 4’9” x 6”) = 97.565 CF + 15.4375 CF = 113.0025 CF] (“Expansion Space”), as depicted on Exhibit B-1. In the month following the installation of improvements within the Expansion, the Rent shall increase by Nine Hundred Thirty-Two and 27/100 Dollars ($932.27), in consideration for the Expansion Space (“Expansion Rent”). Once the Expansion Rent is due and owing by Tenant as set forth above, the Expansion Rent shall be payable to Landlord at the times and in the manner set forth in the Lease for payment of Rent; provided, however, Tenant may terminate the Expansion Space in its sole discretion upon thirty (30) days’ written notice to Landlord, and Expansion Rent shall cease for the month immediately following such notice, Attachment 3
Council Agenda 6-17-2025 12.C-9
2 Site Name: Pismo
Site Number: US-CA-7059
provided Tenant has removed all above-ground improvements upon the Expansion Space in accordance with the terms of the Lease. Landlord and Tenant agree that each and every reference in the Lease to “Premises” shall also include the “Expansion Space” (if any).
3.Memorandum of Lease. Tenant shall be permitted to record a Memorandum of Lease, or Memorandum of Amendment of Lease, as applicable (“MOL”), in the form attached as Exhibit C, reflecting the terms of the Lease as modified by this Amendment, and Landlord shall promptly execute such MOL at Tenant’s request.
4.Survey of Premises. If an accurate, surveyed legal description of the Premises has not been incorporated into the Lease, Tenant may conduct an updated survey of the Premises, at Tenant’s sole cost and expense, to be used to replace any such erroneous legal descriptions, drawings, depictions, or site plans, previously attached as attachments, exhibits, schedules, or other supplements to the Lease, upon reasonable approve of the Landlord, which approval shall not be unreasonably withheld, conditional, or delayed. Such surveyed legal descriptions shall serve as the “Premises” under the Lease, shall supersede any other descriptions of the Premises in the Lease, shall be attached by Tenant through an additional “Premises Addendum” to the Lease at a later time, and may be done within five (5) years of the Effective Date.
5.Notices. All notices under the Lease shall be delivered by Federal Express, or US certified mail return receipt requested, and addressed to:
If to Tenant:
VB-S1 Assets, LLC
c/o Vertical Bridge REIT, LLC
750 Park of Commerce Drive, Suite 200
Boca Raton, Florida 33487
Attention: General Counsel
Ref: US-CA-7059
If to Landlord:
City of Pismo Beach
760 Mattie Road
Pismo Beach , California 93449
Email: [email protected]
Phone: 805-773-4657
6.Representations of Landlord. Landlord warrants and represents that: (i) it is the owner in fee simple of the Premises; (ii) it alone has full right to lease the Premises on the terms of the Lease, as amended; and (iii) it has the full authorization and authority to execute this Amendment.
7.Counterparts/Digital Signatures. This Amendment may be executed in counterparts with the same effect as if both parties hereto had executed the same document. Both counterparts shall be construed together and shall constitute a single document. Delivery of a copy of this Amendment bearing an original signature by facsimile transmission, by electronic mail in Attachment 3
Council Agenda 6-17-2025 12.C-10
3 Site Name: Pismo
Site Number: US-CA-7059
“portable document format” (“.pdf”) form, or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing the original signature. For the purposes of this section, “original signature” means or refers to a signature that has not been mechanically or electronically reproduced.
8. Ratification. Except as amended and modified herein, the Lease is ratified and confirmed in all respects and shall continue in full force and effect. In the event of any dispute between the terms of the Lease and this Amendment, the terms of this Amendment shall govern and supersede those set forth in the Lease.
[The remainder of this page is intentionally blank; signature page follows.] Attachment 3
Council Agenda 6-17-2025 12.C-11
Site Name: Pismo
Site Number: US-CA-7059
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the Effective Date.
LANDLORD:
City of Pismo Beach
By: ______________________________
Name: ____________________________
Title: _____________________________
Date: ____________________________
[Landlord’s Signature Page to Amendment]
Attachment 3
Council Agenda 6-17-2025 12.C-12
Site Name: Pismo
Site Number: US-CA-7059
TENANT:
VB-S1 Assets, LLC
By: ___________________________
Name: Timothy Tuck
Title: VP Leasing Administration and Asset
Management
Date: _____________________________
[Tenant’s Signature Page to Amendment]
Attachment 3
Council Agenda 6-17-2025 12.C-13
Site Name: Pismo
Site Number: US-CA-7059
Exhibit A
Description of the Property (Parent Parcel)
Attachment 3
Council Agenda 6-17-2025 12.C-14
Site Name: Pismo
Site Number: US-CA-7059
Exhibit B
Legal Description of the Premises
Tenant, as tenant’s sole expense, will have a survey completed of the Premises and the depiction below will be replaced with a legal description of the Premises.
Attachment 3
Council Agenda 6-17-2025 12.C-15
Site Name: Pismo
Site Number: US-CA-7059
Exhibit B-1
Expansion Premises
Tenant, as tenant’s sole expense, will have a survey completed of the Expansion Premises and the depiction below will be replaced with a legal description of the Expansion Premises.
Attachment 3
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Site Name: Pismo
Site Number: US-CA-7059
Exhibit C
Form of Memorandum of Lease
[SEE ATTACHED]
Attachment 3
Council Agenda 6-17-2025 12.C-17
Site Name: Pismo
Site Number: US-CA-7059
_____________________________________________________________________________________ (Above 3” Space for Recorder’s Use Only)
Upon Recording Return to:
Vertical Bridge REIT, LLC
750 Park of Commerce Drive, Suite 200
Boca Raton, Florida 33487
Attn: General Counsel
Site Name: Pismo
Site Number: US-CA-7059
MEMORANDUM OF SITE LEASE WITH OPTION
This First Memorandum of Amendment to Site Lease With Option (“Memorandum”) evidences a Site Lease With Option , dated August 24, 2012 (the “Lease”) by and between City of Pismo Beach , whose address is 760 Mattie Road , Pismo Beah , California 93449 (“Landlord”), and VB-S1 Assets, LLC, a Delaware limited liability company, whose mailing address is 750 Park of Commerce Drive, Suite 200, Boca Raton, Florida 33487 (“Tenant”).
WHEREAS, Landlord owns certain real property (the “Property”) described on Exhibit A-1 attached hereto.
WHEREAS, pursuant to the Lease, Landlord leases to Tenant a portion of the Property (the “Premises”) described on Exhibit A-2 (and together with Exhibit A-1, collectively, Exhibit A).
WHEREAS, the Lease commenced on February 1, 2013, for an initial term of Five (5) years, with Five (5) renewal terms of Five (5) years each.
WHEREAS, the Lease, as amended, further provides as follows:
1. The Premises may be used exclusively by Tenant for certain purposes, including without limitation, erecting, installing, operating, reconstructing, and maintaining certain radio and communications towers, buildings, and equipment.
2. Tenant is entitled to sublease and/or sublicense the Premises, including any communications tower located thereon.
3. This Memorandum is not intended to amend or modify, and shall not be deemed or construed as amending or modifying, any of the terms, conditions or provisions of the Lease. In the event of a conflict between the provisions of this Memorandum and the provisions of the Lease, the provisions of the Lease shall control. The Lease shall be binding upon and inure to the benefit of Landlord and Tenant Attachment 3
Council Agenda 6-17-2025 12.C-18
Site Name: Pismo
Site Number: US-CA-7059
and shall inure to the benefit of their respective heirs, successors, and assigns, subject to the provisions of the Lease.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK, SIGNATURES BEGIN ON NEXT PAGE]
Attachment 3
Council Agenda 6-17-2025 12.C-19
Site Name: Pismo
Site Number: US-CA-7059
IN WITNESS WHEREOF, the parties hereto have executed this MEMORANDUM as of the date last signed by a party hereto.
WITNESSES:
Name:
Name:
LANDLORD:
City of Pismo Beach
By:
Name:
Title:
Date:
CALIFORNIA ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document
State of California
County of _____________________________)
On , 2025 before me,
(insert name and title of the officer) personally appeared (name of signatory), who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
Attachment 3
Council Agenda 6-17-2025 12.C-20
Site Name: Pismo
Site Number: US-CA-7059
[Tenant’s Signature Page to Memorandum]
STATE OF FLORIDA
COUNTY OF PALM BEACH
The foregoing instrument was acknowledged before me this , 2025, by (name of signatory),
(title of signatory) of VB-S1 Assets, LLC, a Delaware limited liability company, on behalf of the company. He/she is personally known to me.
Notary Public
Print Name:
My Commission Expires:
WITNESSES:
Name:
Name:
TENANT:
VB-S1 Assets, LLC,
a Delaware limited liability company
By:
Name:
Title:
Date:
Attachment 3
Council Agenda 6-17-2025 12.C-21
Site Name: Pismo
Site Number: US-CA-7059
EXHIBIT A
(TO MEMORANDUM OF LEASE)
EXHIBIT A-1
The Property
EXHIBIT A-2
The Premises (including Expansion Space)
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