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SLPS staff presents Vertical Bridge lease buyout options for two school cell towers; committee delays decision pending legal review
Summary
Staff presented buyout offers from Vertical Bridge for cell-tower leases at Nance Elementary and Long Middle School, showing lump-sum and installment options; committee asked legal counsel to review successor-liability language and held action to the next meeting.
SLPS staff reported Sept. 15 that Vertical Bridge has offered lease buyout options for two cell-tower sites on district property: Nance Elementary School and Long Middle School. The committee reviewed lump-sum and installment options and directed staff to obtain legal review of successor provisions before selecting an option.
Staff said SLPS currently receives about $12,000 a year from each tower lease. For Nance Elementary, Vertical Bridge presented three options: a lump-sum payment of $165,000; a three-year installment option totaling $185,000; and a five-year installment option totaling $200,000 (presented as approximately $33,333 per year). For Long Middle School, the offers were a lump sum of $152,000; a three-year installment of $175,000; and a five-year installment totaling $190,000 (presented as approximately $31,667 per year).
Staff recommended the five-year installment option at both properties as it yielded the highest total payout. Committee members asked clarifying questions about what is being leased (rights to use towers located on SLPS property used by wireless carriers), maintenance responsibilities (Vertical Bridge handles maintenance now and would continue to), exclusivity (Vertical Bridge would hold rights that other carriers would need to negotiate through Vertical Bridge), and why Vertical Bridge was exercising the option now (to control financing).
Legal concerns drove the committee’s decision to delay approval: several members requested assurance that any buyout or installment agreement include successor-liability language protecting SLPS if Vertical Bridge is sold or goes out of business. Committee members also asked for a specific review by legal counsel before a vote. Staff agreed to return the agreements with legal counsel’s findings at the next real estate meeting; no vote was held on Sept. 15.
Staff noted the buyouts would materially increase near-term revenue if approved, but any spending plan for the proceeds would require coordination with finance.
