HomeMy WebLinkAboutItem 5.7 First Amendment to the Site Lease Agreement with Wireless Edge Towers III, LLC Agenda Item 5.7
STAFF REPORT
CITY COUNCIL
Page 1 of 3
DATE: May 19, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Colleen Tribby, City Manager
SUBJECT:
First Amendment to the Site Lease Agreement with Wireless Edge Towers
III, LLC
Prepared by: Jordan Foss, Senior Management Analyst
EXECUTIVE SUMMARY:
The City Council will consider approving an amendment to the Site Lease Agreement with
Wireless Edge Towers III, LLC for the construction, operation, and maintenance of a wireless
telecommunication facility at Fallon Sports Park. The proposed amendment removes the
bonus rent section (Section 6(g)), increases the community benefit payment to $150,000,
allows for advance renewal term bonuses, and provides the City with a one -time lump sum
payment option.
STAFF RECOMMENDATION:
Adopt the Resolution Approving a First Amendment to the Site Lease Agreement with
Wireless Edge Towers III, LLC for the construction, operation, and maintenance of a wireless
telecommunication facility at Fallon Sports Park.
FINANCIAL IMPACT:
The proposed contract amendment increases Wireless Edge’s community-benefit contribution
from $100,000 to $150,000 and allows for advance payment of the $10,000 per renewal bonus
at the City’s request. The amendment further clarifies that the City shall retain the right to
receive a one-time lump sum payment, prorated based on the amount of time remaining on the
site lease agreement.
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DESCRIPTION:
Background
Eastern Dublin has experienced persistent gaps in wireless service coverage due to residential
growth, increased demand for data usage, and limited existing wireless infrastructure. In
response to resident concerns and City Council direction, Staff explored opportunities to
facilitate improved wireless connectivity through partnerships with private telecommunication
infrastructure providers on City-owned property.
At the March 24, 2026 City Council meeting, the City Council approved the Site Lease
Agreement with Wireless Edge Towers III, LLC (“Wireless Edge”) for the construction,
operation, and maintenance of a wireless telecommunication facility at Fallon Sports P ark.
After execution of the agreement, Wireless Edge informed Staff of a requested amendment to
address certain provisions in the approved agreement. Staff and the City Attorney reviewed
the request and determined that the proposed amendments are consisten t with the intent of
the original agreement and do not pose a material risk to the City.
Proposed Amendments
Wireless Edge identified language in the approved Site Lease Agreement to which it could not
agree, specifically the “Bonus Rent” provision in Section 6(g). Bonus rent is an amount a
tenant might receive from a subtenant that exceeds the rent payable under the lease. Such
scenarios can occur when the lease rent is below market, and landlords customarily include
provisions that require the tenant to split the bonus rent. Here, Section 6(g) required the tenant
to split the bonus rent with the City. Because of the unique structure of the tower lease, which
involves Wireless Edge sharing with the City a portion of the rent it receives from the wireless
companies occupying the tower, Wireless Edge does not believe the bonus-rent provision is
appropriate in this context. The City Attorney, Staff, and the City’s consultant, Horizon Tower,
discussed this request and agreed with Wireless Edge, particularly in light of the additional
financial benefits of the revised proposal.
Alongside its request to remove the Bonus Rent provision, Wireless Edge submitted revised
financial terms, including a higher community benefit payment and additional discretionary
funding options available to the City:
Increasing the community benefit payment from $100,000 to $150,000 upon
commencement of construction.
Allowing advance payment of the bonuses associated with the renewal of the
agreement.
o The renewal bonuses are designated payments of $10,000 per 10-year period up
to five renewals for a total of 50 years. The renewal bonus is paid to the City by
Wireless Edge upon renewal of the agreement.
o Example: The City could request advance payment of $30,000 to cover three
renewal periods; because the advance counts as those renewals, the agreement
term is extended by 30 years (three 10-year periods).
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A provision to allow the City to receive a one-time, lump-sum payment in lieu of future
monthly sublease payments.
o Lump-sum amounts are prorated based on timing of request by the City (if
exercised).
o If the provision is exercised, the City would no longer receive monthly sublease
payments for the facility for the entirety of the remaining agreement.
STRATEGIC PLAN INITIATIVE:
None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
The City Council Agenda was posted.
ATTACHMENTS:
1) Resolution Approving a First Amendment to the Site Lease Agreement with Wireless Edge
Towers III, LLC
2) Exhibit A to the Resolution — First Amendment to the Site Lease Agreement with Wireless
Edge Towers III, LLC
3) Site Lease Agreement with Wireless Edge Towers III, LLC
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Attachment 1
Reso. No. XX-26, Item X.X, Adopted 05/19/2026 Page 1 of 2
RESOLUTION NO. XX – 26
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING A FIRST AMENDMENT TO THE SITE LEASE AGREEMENT WITH
WIRELESS EDGE TOWERS III, LLC
WHEREAS, on March 24, 2026, the City Council adopted Resolution No. 17 -26 approving the
Site Lease Agreement (“Agreement”) with Wireless Edge Towers III, LLC (“Wireless Edge”) for the
construction, operation, and maintenance of a wireless telecommunication facility at Fallon Sports Park;
and
WHEREAS, following execution of the Agreement, Wireless Edge identified certain provisions
within the Agreement that required modification, including the “Bonus Rent” provision contained in
Section 6(g); and
WHEREAS, Wireless Edge requested that the Bonus Rent provision be removed due to the
unique structure of the tower lease arrangement, which already provides the City with a share of
revenue received from wireless carriers occupying the tower facility; and
WHEREAS, the City Attorney, City Staff, and the City’s telecommunications consultant, Horizon
Tower, reviewed the requested amendments and determined that the proposed revisions would not
alter the intent of the Agreement or create additional risk to the City; an d
WHEREAS, as part of the proposed amendments, Wireless Edge agreed to increase the
community benefit payment from $100,000 to $150,000 upon commencement of construction, allow for
advanced payment of renewal bonuses at the City’s request , and clarify the City’s right to receive a
one-time lump sum payment prorated based on the remaining lease term , only to be exercised at the
City’s discretion.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby
approve the First Amendment to the Agreement with Wireless Edge, attached hereto as Exhibit A.
BE IT FURTHER RESOLVED that the City Manager is authorized to make any necessary, non -
substantive changes to carry out the intent of this Resolution.
{Signatures on the following page}
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Reso. No. XX-26, Item X.X, Adopted 5/19/2026 Page 2 of 2
PASSED, APPROVED AND ADOPTED BY the City Council of the City of Dublin, on this 19th
day of May, 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
_________________________________
City Clerk
402
Attachment 2
Exhibit A to the Resolutio n
FIRST AMENDMENT TO
WIRELESS TELECOMMUNICATIONS FACILITY LEASE AGREEMENT
THIS FIRST AMENDMENT TO WIRELESS TELECOMMUNICATIONS FACILITY
LEASE AGREEMENT (the "Amendment"), dated as of _______ , 2026 (the
"Effective Date"), is made by and between City of Dublin, whose address is 100 Civic Plaza,
Dublin, CA 94568 ("Landlord") and Wireless EDGE Towers III, LLC, a Delaware limited liability
company, whose address is 38 West Market Street, Rhinebeck, NY 12572 ("Tenant").
W I T N E S S E T H:
WHEREAS, Landlord and Tenant entered into that certain Wireless Telecommunications
Facility Lease Agreement, dated as of ________ , 2026 (the "FLA"); and
WHEREAS, Landlord and Tenant now desire to amend the FLA upon the terms, conditions
and provisions set forth herein.
NOW, THEREFORE, in consideration of the mutual agreements herein contained, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:
1.Definitions. All defined terms used in this Amendment, unless otherwise defined
herein or superseded hereby, shall have the respective meanings ascribed thereto under the FLA.
(a)Subsection 3(c) of the FLA is deleted in its entirety and replaced with the following:
(c)Community Benefit Bonus: In addition, Tenant shall pay to Landlord a
one-time bonus payment of One Hundred Fifty Thousand Dollars ($150,000) payable
within ten (10) business days of receipt of all Governmental Approvals, including a
building permit to construct the facility.
(b)Subsection 3( d) of the FLA is deleted in its entirety and replaced with the following:
(d)Renewal Term Bonuses: In addition, Tenant shall pay to Landlord a one-
time fee payment of Ten Thousand Dollars ($10,000) each for each Renewal Term
payable prior to start of the applicable Renewal Term. Landlord shall have the option of
receiving any or all of the Renewal Term Bonuses in advance, on at least thirty (30) days
prior written notice to Tenant.
3.Assignment and Subletting.
(a)Subsection 6(c) is amended by adding the following to the end thereof:
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May 19
March 24
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Attachment 3
WIRELESS TELECOMMUNICATIONS FACILITY LEASE AGREEMENT
This Wireless Telecommunications Facility Lease Agreement (''Lease") is entered into as of the 24th day of March, 2026 (the "Effective Date") by and between the City of Dublin, whose
address is l 00 Civic Plaza, Dublin, CA 94568 ("Landlord") and Wireless EDGE Towers III,
LLC ("Tenant"), a Delaware limited liability company, whose address is 38 West Market
Street, Rhinebeck, NY 12572.
WITNESS ETH:
WHEREAS, Landlord is the owner of certain real property more pa1ticularly described on Exhibit "A" attached hereto (the ·'Property''); and
WHEREAS, Landlord and Tenant are entering into this Lease for a portion of the Property
measuring approximately twenty-seven (2700) square feet as more particularly described on
Exhibit "B'' attached hereto (the "Premises") to permit Tenant to develop the Premises as a
wireless telecommunications facility; and
WHEREAS, in order to develop the Premises, Tenant shall construct a tower, as generally
depicted on Exhibit "C" attached hereto (collectively, the "Structure"), as well as equipment
sheds and related facilities and improvements to accommodate multiple wireless Co-locators
(as hereinafter defined) as well as Landlord's public service antennas; and
WHEREAS, Tenant intends to market portions of the Structure and Premises to wireless
carriers ("Co-locators"), and to enter into appropriate agreements with such Co-locators to use
the Structure and Premises; and
WHEREAS, during the period of the Co-locators' use of the Structure and the Premises, Tenant
shall manage the Premises by performing the services described on Exhibit "D" attached hereto
(the "Antenna Site Management Responsibilities");
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, Landlord and Tenant hereby agree as follows:
l)Premises. Landlord hereby leases to Tenant the Premises and Tenant hereby leases from
Landlord the Premises upon the terms and conditions contained in this Lease.
2)Term.
(a)The Initial Term of the Lease shall be ten (I 0) years (the "Initial Term"),
commencing upon the earlier of: (i) the date that Tenant starts the actual construction on the
Premises; or (ii) twenty-four (24) months from the Effective Date (the "Commencement Date");
WEC-CA-01
Fallon Sport Park - Dublin
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