Two Rivers council approves $305,000 tower lease payout, lists city land and awards fuel contract; youth-sports lease tabled

The Two Rivers City Council on Monday, Oct. 20, 2025 approved a package of agreements intended to generate immediate and recurring revenue for the city and to formalize several property arrangements, while tabling action on a proposed long-term lease for youth sports fields.

The actions were taken during the council's regular meeting at city hall and were approved by voice vote unless otherwise noted.

The agenda items addressed short-term budget needs and long-term revenue prospects. The largest immediate transaction approved will bring $305,000 to the city in exchange for a telecommunications easement and the monetization of the city's existing US Cellular tower lease; the council also approved a new listing contract to market a 1.3-acre vacant city parcel and authorized a municipal fleet fuel agreement intended to lower annual fuel costs.

Votes at a glance:

- Tower lease monetization (TowerPoint): Approved. The council authorized an agreement under which TowerPoint would pay the city $305,000 up front for rights tied to the existing US Cellular tower and a telecommunications easement. Future revenue from new tenants solicited for the tower would be split 60% to the city and 40% to TowerPoint. The council also authorized the city manager to sign the agreement on the city's behalf.

- Vacant-land listing (Eighteenth & Hawthorne): Approved. The council authorized a listing contract with Weichert Realtors Cornerstone to market a 1.3-acre city-owned parcel, priced at $139,900, with the goal of attracting residential development (multifamily, duplexes, townhomes or similar). The council directed staff and the realtor to prioritize suitable residential buyers and to include a two-year build requirement in negotiations.

- Fleet refueling contract (Kwik Trip): Approved. The council awarded the municipal fuel contract to Kwik Trip, which offered a discount of 12 cents per gallon off posted prices. The start date in the contract was changed by the council to Dec. 1, 2025. Staff told the council the contract covers about 32,000 gallons of gasoline per year and is expected to save roughly $3,500 annually under current conditions; the council asked staff to monitor prices and said the contract may be terminated on 30 days' notice if market conditions change.

- Parking lot lease (Chamber of Manitowoc County): Approved. The council formalized longstanding, historical use by approving a written lease placing maintenance and snow removal responsibilities with the chamber for a city-owned lot adjacent to the chamber building and authorized the city manager to sign the lease.

- Lakeshore Humane Society conditional-use public hearing: Set. As part of the consent agenda the council set a public hearing for Nov. 3, 2025, at 6:00 p.m. to consider a conditional-use permit request for Lakeshore Humane Society at Columbus Street (parcel 053-211-102-001.09).

- Traverse Youth Sports ground lease (Vietnam Veterans Memorial Park field): Tabled. The council accepted a staff recommendation to table final action on a proposed 15-year ground lease requested by Traverse Youth Sports so members could review a redlined revision of the lease and return with the final document on Nov. 3, 2025.

How the major transactions will work (as described in staff presentations):

- Tower transaction: The city will retain ownership of the underlying property but grant TowerPoint a telecommunications easement and sell the lease revenue stream. Under the agreement, TowerPoint will market the site to additional telecommunications tenants; the city would receive 60% of revenue from any future tenants and the $305,000 up-front payment prior to 2026. Staff noted the existing US Cellular lease currently pays the city just under $1,300 per month with a roughly 3% annual escalation; the monetization is intended to protect the city if the current tenant leaves the market and to create immediate budgetary relief.

- Vacant-land listing: Staff said the 1.3-acre triangular parcel is currently zoned industrial, but is surrounded by single-family homes and may be more suitable for residential development; listing at $139,900 will test market interest with a preference expressed for multifamily or smaller-scale residential use.

- Fuel contract: The contract locks in a per-gallon discount from Kwik Trip (12 cents off posted price) and begins Dec. 1, 2025, by council amendment. Council members asked staff to monitor posted retail prices so the city continues to realize savings after factoring the discount.

Formal motions and outcomes (summary of record):

- Motion to approve and authorize the city manager to sign the TowerPoint agreement: Mover not specified; second by a council member (recorded as Bill LeClaire); outcome: approved by voice vote.

- Motion to authorize the listing contract with Weichert Realtors Cornerstone and permit the city manager to sign: Mover not specified; second by Shannon Derby; outcome: approved by voice vote.

- Motion to award the municipal fuel contract to Kwik Trip with a start date changed to Dec. 1, 2025, and to authorize the city manager to sign: Mover not specified; second by Tim Petrie; outcome: approved by voice vote.

- Motion to table final action on the 15-year ground lease request by Traverse Youth Sports to the Nov. 3 council meeting: Mover not specified; outcome: tabled by voice vote.

- Consent agenda (receive-and-file items, department reports, set public hearing for Lakeshore Humane Society): Approved by voice vote.

Council members who participated in the meeting included Mark Bittner, Shannon Derby, Bill LeClaire, Tim Petrie, Bonnie Schumelounis, Scott Steckmusser and Darla LeClaire; two members were absent. Several staff members presented the agenda items and responded to council questions about legal review, pricing mechanics and timing of transactions.

What council members said: Council members and staff emphasized the financial rationale for monetizing the tower lease now, cited the city's need to diversify revenue if a single tenant (US Cellular) leaves, and asked staff to monitor the fuel contract prices and ensure any prospective buyer for the vacant parcel would meet the city's development objectives.

Next steps: TowerPoint's payment was expected to be received before 2026; the youth-sports lease will return to the Nov. 3 meeting with the final redlined document; the city will proceed with the Weichert listing and the fuel contract will begin Dec. 1, 2025.