City holds public hearing on proposed 30-year amendment to NEIT tower lease

The Decorah City Council opened a public hearing on Aug. 4 on a proposed amendment to the city's site lease with Northeast Iowa Telephone Company (NEIT) that would extend the current lease with options to renew for a total of 30 additional years. Steve Hansen, chief operating officer of NEIT, said the tower has been on city property since 2001 and that long-term certainty is important because equipment upgrades can require investments of "$2,300,000 at a time." Hansen told the council NEIT is not requesting additional ground space or a rent reduction; the company seeks a long-term extension to justify future equipment investments.

Staff said the public hearing is required by Iowa code for a city considering sale or a long-term lease of city land and that planning and zoning will make a recommendation before the council considers final action at the Aug. 18 meeting. The proposed amendment would continue the existing site area with a modified footprint to reflect an existing fence and equipment layout; staff noted the current annual rent is $9,663. Meeting discussion included a clarification request about lease terms: staff described the draft as allowing five-year terms with a 10% annual rent increase at each renewal option (as stated in the draft language presented to the council).

Why it matters: the tower site hosts fixed wireless internet and wireless carrier equipment that serve local connectivity; NEIT said long-term lease certainty is necessary for large capital upgrades. Planning and zoning review and a future council vote were scheduled; no final action was taken at the Aug. 4 meeting.