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Council approves eight‑year Comcast right‑of‑way agreement for Elevage; $5,000 permit and annual fee set
Summary
Council approved a right‑of‑way license allowing Comcast to build infrastructure for the Elevage development in a limited mapped area, with a $5,000 initial permit fee, $5,000 annual fee (5% annual increase) and an eight‑year term with 90‑day notice at term end.
The City Council voted to approve a right‑of‑way license with Comcast on Feb. 10, 2025, allowing the company to install below‑ground internet infrastructure in a limited area mapped for the Elevage development.
City Attorney Eric and staff said the agreement is a license, not an easement, and includes an eight‑year primary term with a 90‑day termination notice window at the end of that period. The agreement replaces simple permit treatment and sets a permitting fee and recurring annual payments. The final terms include a $5,000 permit fee and a $5,000 per‑year fee thereafter with a 5% annual increase. The contract also requires Comcast to pay the city's legal and professional fees associated with drafting the agreement.
Eric, City Attorney, said the city used a Wayzata agreement as a starting point and revised it to protect the city's interests: "No. We're not going to give you any property rights to the city streets. You have a license agreement." He added that the agreement requires Comcast to relocate facilities for repairs at Comcast's expense and to provide clear mapping of permitted right‑of‑way areas.
Staff emphasized the arrangement covers only the mapped right‑of‑way area for Elevage; Comcast may not use other city right‑of‑way without a separate amendment. Council members asked whether businesses across the street could be served and were told expansion could occur only if Comcast pursued separate permission or an amendment.
The council discussed whether the infrastructure would be fiber optic; staff indicated the installations are below‑ground cable and likely fiber optic. The council also discussed how the city will evaluate right‑of‑way agreements in 2025 when updating the fee schedule for 2026; staff said this would be a trial arrangement to inform future policies.
A motion to approve the Comcast right‑of‑way agreement was made and seconded; the council voted by voice and the motion passed.
