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August 27, 2026 City Council Regular Meeting
Title
56. Authorize the City Manager to Execute Amendment No. 6 for an Existing City-owned Water Tower Lease Agreement with Alltel Communications, LLC "Verizon" Located in Aldermanic District 1. (Real Estate Services)
Strategic Priority
GOAL 2: Invest in Equitable Community Development & Resiliency
Description

Alltel Communications, LLC (“Verizon”) currently leases space on the City’s water tank located at 100 James B. Blackburn Drive, near Savannah/Hilton Head International Airport. Verizon began leasing space from the City on June 1, 2004. Verizon is requesting approval to upgrade equipment at the leased premises, which requires an amendment to the existing lease agreement.

The City and Alltel Communications, LLC ("Verizon") have negotiated a one-time administrative fee of $11,000.00 associated with the requested equipment upgrade. In addition, the amendment provides for three (3) additional automatic five-year renewal terms, extending the potential lease term from 2028 through 2043.

The annual lease rate for 2026 is $108,361.56, with a 4% annual escalation thereafter.
  This is a City-owned property located in Aldermanic District 1.  

This Amendment No. 6 to Lease has been reviewed and approved by the Water Resources Department and the Real Estate Services Department. The following condition(s) are noted:
1. Equipment installation is in accordance with approvals and attached as Exhibit C-5 to the Sixth Amendment.
2. Equipment installation shall be coordinated with the City's Water Supply & Treatment Department.

Recommendation

Approval

Contact
Cristy Lawrence, Senior Director of Real Estate & Capital Projects
Financial Impact
$108,361.56 to General Fund + 4% escalator
Review Comments
Attachments
Exhibit 1: Location Maps.pdf
Exhibit 2: Amendment No.6 Lease Agreement.pdf
Agenda Plus