Council asks staff to research renewal of cell-tower lease behind Hill Cemetery

The New London City Council directed staff to research market comparisons and return with recommendations on renewing a lease with Ensite Power Holdings for a cellular tower located behind Hill Cemetery.

Council members heard from Chad, a staff member, who summarized the existing arrangement and the company proposal. The city has leased the tower site to a successor of the original 2006 lessee under five-year terms with automatic renewals. The current rent is $1,349.69 per month and increases annually under a consumer price index formula; the lease also pays an additional $200 per month for each sublessee on the tower. Chad said two sublessees are currently on the structure and that T-Mobile is one of them. The new contract in front of the council would start with a five-year initial term and include five automatic five-year renewals (a potential 25-year total term).

Council members asked about liability and revenue. The draft lease requires insurance coverage; the file shows a minimum policy of $2,000,000. Chad said tower rent is budgeted to the general fund and that the city currently budgets $20,500 under tower rental. Councilors asked whether the current rate is market-competitive and whether the city should seek higher rent or negotiate different terms.

After discussion, a council member moved to have staff do additional research and bring rate comparisons and recommendations back at a future meeting. The motion was seconded and carried.

Next steps: staff will research comparable municipal tower leases and return to the council with findings and recommended changes to the proposed renewal. The council did not approve the renewal at this meeting; it approved only the direction to research and return with comparative data.