Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tower Leases topic
No spam. Unsubscribe anytime.
Elko TV board tables AT&T lease change, authorizes negotiations
Summary
Board received a proposal from AT&T asking to reduce monthly rent or buy easement at Grindstone; board voted to table final decision and authorized staff to negotiate and return with financial analysis.
Marvin Robertson, a representative of MB7 speaking on behalf of AT&T, told the Elko County TV District board on Thursday that AT&T is seeking changes to its Grindstone site lease because national market conditions and new low-earth-orbit services have reduced the long-term value of many rural tower locations.
The board, led by Chair Dale, did not accept either of AT&T’s options at the meeting. Instead members instructed district staff and their contracted manager to continue negotiations and present detailed financial scenarios before taking a final vote.
Robertson outlined two options in a term sheet: reduce monthly rent from about $2,900 to roughly $2,100, or accept a one-time easement buyout of $476,000. He said the company also is seeking to normalize future escalators to a 2% index and include a right of first refusal to protect its network position.
“The goal of AT&T is to make the site suitable so that it’s sustainable for them and provides a sustainable income for you going forward,” Robertson said. “There’s a possibility many of these sites could hit zero value if carriers exercise termination clauses.”
Board members raised concerns about long-term commitments and the district’s authority to grant multi-decade easements. The chair said a 99-year easement would likely be inappropriate for an elected board whose members can change and for sites partly located on privately leased ranch land.
Board discussion emphasized two tasks: (1) have Complete Management (the district’s contracted manager) run pricing and risk scenarios and (2) authorize negotiated counteroffers that limit long-term commitment length. Chair Dale asked staff to return a cost-analysis and recommended negotiating a shorter maximum renewal term if negotiations proceed.
The board voted to table a final decision and authorized Complete Management and staff to negotiate with AT&T and Verizon and report back at the next meeting.
The board and AT&T representative agreed to follow up; Robertson offered to provide linked industry documents and additional background for the district’s review.
The board’s motion carried by voice vote.
