Title
Palos Community Hospital - Tower Lease Agreement
History
On March 23, 2016, the Village of Orland Park (VOP) and St. George Corporation aka Palos Community Hospital (PCH) entered into a Memorandum of Understanding (MOU) regarding the preservation of the existing fitness center, including a possible land exchange between both parties. On July 18, 2016 the Village Board approved the Land Exchange Agreement which provides the details of what was agreed between both parties.
One of the terms of the Land Exchange Agreement, is that the Village of Orland Park will grant a 20 year lease for use of a water tower at 145th Street and 88th Avenue for PCH’s communication needs, with staggered lease payments. In addition, PCH will bear the cost of all licenses and permits, any structural analysis and installation/maintenance of their equipment. PCH may terminate the Tower Lease at any time upon 90 days prior written notice.
Rental to the Village for the use of the tower will be determined by Village Code, but with rental waived for the first five (5) years of the lease, twenty-five percent (25%) of the rental paid the second five (5) years of the lease, fifty percent (50%) of the rental paid the third five (5) years of the lease and seventy-five percent (75%) of the rental paid the final five (5) years of the lease. Rental is determined based on calendar year and there is a three (3%) percent escalation each year over the prior year.
PCH can extend the lease for two (2) additional, five-year terms. Each renewal will be on the same terms and conditions set forth in the agreement, except that rental for each year of a renewal will be at the rate as set by Village Code.
Financial Impact
Revenue generated from the twenty year tower lease term will amount to, at minimum, approximately $304,000.
Recommended Action/Motion
I move to approve the lease of the cell tower at 145th Street and 88th Avenue to St. George Corporation aka Palos Community Hospital as set for...
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