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Council approves transfer of US Cellular lease to entity sold to T‑Mobile
Summary
Council approved a transfer of the city's lease with a US Cellular holding company to a company that was sold to T‑Mobile; staff said the transfer preserves the city's approval rights under the existing lease and that new lease terms will be negotiated with any new tower locations.
The Seward City Council voted to approve a transfer of the city's lease with a US Cellular holding company to a separate entity that has been sold to T‑Mobile, city staff said.
City staff explained that US Cellular reorganized by placing certain wireless assets into a newly formed company, USCC Wireless Holdings LLC, and that the new entity was sold to T‑Mobile as of Aug. 1. The requested council action was approval of the lease transfer under the city’s existing lease clause that requires municipal approval for any transfer of the leasehold interest.
Staff told the council the transfer covers equipment located on the city’s older water tower; T‑Mobile is in the process of moving equipment to a new downtown tower and will present any new lease terms for that new location separately. An amendment in the existing lease provides for periodic escalations; staff said the current lease had a 15% increase built into each term since the 2013 base rent was set and that staff would verify the current rent schedule.
Council members asked whether the city should revisit the 2013 lease rate; staff said the current action only approves the transfer and that any renegotiation would come later under a separate lease with the company that occupies the new tower.
The council approved the transfer by recorded vote. Voting in favor were Francis Scott, Kayla, Tanya, Spaldwin and Miller; the motion carried on a 6–0 tally as recorded by the clerk.
