Council approves Verizon's limited first-right-of-refusal for cell tower lease, declines perpetual easement

The Riverton City Council on Sept. 16 approved an amendment to an existing lease for a cellular tower near the citys water tank to add a limited first right of refusal, with Verizon agreeing to a $10,000 one-time payment in exchange for the change. The amendment gives the lessee a right to purchase the property should the city ever opt to sell it; council members and staff emphasized the city likely will not sell the parcel while the water tank remains in place. Legal counsel warned that converting a lease to a perpetual easement would shift long-term control and reduce city oversight, and staff recommended approving only the first-right clause and rejecting an easement. Councilman Eric Carr moved to adopt the staff recommendation to add the limited first right of refusal; Councilman Mike Bailey seconded. Council voted in favor; no recorded opposition. City staff said the current lease, last amended in 2018, pays the city just over $20,000 annually and escalates with the consumer price index. Staff noted Verizon proposed two options: (1) the limited first right of refusal with a $10,000 payment; and (2) converting the lease to a perpetual easement for a lump-sum payment (roughly $435,200 paid over terms with interest to net about $515,000$525,000). Legal counsel explained a perpetual easement would grant the telecom a limited ownership-like interest specific to telecommunications, removing some municipal oversight. Council members discussed the market value of the current lease payments and the trade-offs between steady lease revenue and an upfront easement payment. Staff flagged a potential one-time unbudgeted revenue of $10,000 and said further negotiations would be required if council wanted to pursue the easement. Council directed staff to implement the lease amendment adding the first-right clause and to decline the perpetual easement option for now.