Orange County NC Website
Browse       Search
1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 18, 2024 <br /> Action Agenda <br /> Item No. 8-q <br /> SUBJECT: Lease of Property to TowerCo to Build a Communications Tower <br /> DEPARTMENT: Asset Management Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> 1.) Preliminary Site Plan Alan Dorman, Interim Director, Asset <br /> 2.) Resolution Management Services, 919-245-2627 <br /> 3.) Lease Agreement <br /> PURPOSE: To: <br /> 1.) review a lease to TowerCo for a portion of property located at 3605 Walnut Grove Road; <br /> 2.) adopt the resolution approving the lease; and <br /> 3.) authorize the Manager to sign the lease upon final review by the County Attorney. <br /> BACKGROUND: TowerCo approached the County with an offer to lease a portion of County- <br /> owned property at 3605 Walnut Grove Road in Hillsborough, PIN# 987419070, to install a <br /> communications tower. TowerCo is a leader in the installation and management of <br /> telecommunications towers in the United States. <br /> The Solid Waste Walnut Grove Convenience Center is located on that property, but the subject <br /> portion of the property is not utilized, and there are no plans to expand operations at the site. The <br /> preliminary site plan (Attachment 1) shows the tower placed on the eastern portion of the property. <br /> The lease includes a five-year term and a monthly rent of $1,100, which will increase annually by <br /> 1.5%. Additionally, the lease includes the option for four (4) additional five-year terms and the <br /> potential for additional revenue if TowerCo subleases to more than one telecommunications <br /> provider. <br /> Expanding mobile communications into the rural areas of Orange County would benefit residents <br /> by ensuring better connectivity to the Internet and improved mobile-based communications. <br /> FINANCIAL IMPACT: The total revenue in the first year of the lease includes a one-time payment <br /> of $500 on the lease's effective date, along with a monthly rent of $1,100 once the lease <br /> commences, which is the date the tower begins commercial operations. Annual revenue would <br /> be $13,200. <br />