Item 8-g - Assignment of Leasehold Interest to Chapel Hill Carrboro City Schools

Browse Search

1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 16, 2018 Action Agenda Item No. 8-g SUBJECT: Assignment of Leasehold Interest to Chapel Hill Carrboro City Schools DEPARTMENT: County Attorney ATTACHMENT(S): INFORMATION CONTACT: Assignment Documents John Roberts, 919-245-2318 PURPOSE: To assign to Chapel Hill Carrboro City Schools (CHCCS) any and all rights and interest in cellular antenna leases that were acquired as part of a prior bond financing in which CHCCS deeded Culbreth Middle School (Culbreth) to the County and grant access easements to those cellular antennas. BACKGROUND: In February 2014 the Board of Commissioners approved an installment financing project that included construction of a science wing at Culbreth. As part of the financing project, CHCCS deeded Culbreth to the County. Prior to this, beginning as early as 1998, CHCCS had entered into lease agreements with GTE Mobilnet, New Cingular Wireless and Bellsouth Carolinas (cellular companies) to lease space at Culbreth for the installation of wireless antennas that assist those companies in providing services to customers. In return for leasing space to the Cellular Companies, CHCCS is compensated a negotiated rate. Recently the property was subjected to a title examination in anticipation of renewal of the leases and the cellular companies discovered the transfer of ownership. This transfer impacts the lease between CHCCS and the cellular companies and creates a situation in which CHCCS cannot receive the negotiated compensation. Attorneys for CHCCS have requested the Board of Commissioners assign any rights in the antenna leases that may have been acquired by the County through the transfer of Culbreth back to CHCCS. CHCCS also requests the County, as property owner, grant access easements across the Culbreth property to the cellular companies and their successors so that they may access the antennas due to their desire to slightly modify the original access easements. Once the documents are approved by the Board of Commissioners, they will be presented to the CHCCS Board of Education for approval. FINANCIAL IMPACT: There is no financial impact associated with this assignment. SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated with this assignment. RECOMMENDATION(S): The Manager recommends the Board assign the County's interest in the communications antenna leases to CHCCS, grant access easements to those antennas, and authorize the County Manager to execute the necessary assignment documents.