SUBJECT: KTWU Tower Lease
DESCRIPTION: The new broadcast tower for KTWU has some moderate excess capacity and may be used for locating antennae of moderate tower loads such as low power televisions and radio stations and cell phones. The administration has entered into negotiations with Montgomery Communications, Inc., the entity broadcasting Fox 43 on a lower power antenna formerly housed on a small tower owned by Solid State located near Skinner's Nursery which was destroyed within the past two months. Fox 43 is temporarily housed on the broadcast tower of KTKA.
The negotiated lease agreement provides for a 15 year term, renewable for additional terms, under which the entity pays a monthly base rent ($2,000 for the first year and adjusted annually thereafter on the basis of the CPI calculated by the Bureau of Labor Statistics) shares also in the common area maintenance costs associated with its use of the tower and transmitter building. The payment of common area maintenance costs, which are de minimis, begin October, 2005. The lease agreement includes provisions for passing property taxes levied on the transmission site attributable to the entity's tenancy on to the tenant at any time.
RECOMMENDATION: President Farley recommends approval of the negotiated lease agreement with Montgomery Communications, Inc.
(date) Jerry B. Farley, President