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Mayor discloses option agreement to sell Mendon tower lease; city attorney flagged valuation and contract details
Summary
Mendon's mayor disclosed an option agreement to sell the city's tower ground‑lease to a third party (buyer interested in Vertical Bridge leases). The mayor signed a $1,000 option and reported the buyer showed a $150,000 offer; the city attorney identified four issues to resolve before final contract approval.
Mendon’s mayor told the council on March 13 that the city has accepted an option agreement from a buyer interested in acquiring the ground-lease on a cell tower located on city property and that the mayor signed the option following executive-session discussion.
The tower sits on city property under a long-term easement executed when Verizon originally installed the facility nine years ago; the mayor said the city receives roughly $10,000 per year from the lease. The mayor explained companies sometimes buy such leases to re‑market them or to assemble portfolios for additional wireless tenants.
“We were looking at it really seriously last fall... it was actually between a hundred and 50 to a hundred and $70,000 offer,” the mayor said. He reported the most recent bidder indicated a $150,000 purchase and that the city signed an option agreement with a $1,000 option fee; the mayor said the option fee will be deducted from the purchase payment if the sale proceeds.
The mayor said he sent the option to the city attorney for review and that the attorney returned four concerns: the removal of Verizon’s prior right of first refusal after Verizon’s asset sale; the option did not yet include the buyer’s standard easement terms; the purchase price should be checked against the eventual easement’s terms; and the option agreement omitted the option fee amount (which the mayor later confirmed is $1,000). The mayor said he signed the option “as per our discussion in our executive session” and that the matter will proceed to the attorney for contract drafting.
Why it matters: The city could receive a lump-sum buyout for the tower lease that would provide immediate capital for municipal projects; at the same time the attorney cautioned the sale price might not reflect the full value of a ground-lease once the buyer’s exact easement terms are known.
What comes next: The mayor said the buyer will send a formal contract; the city attorney will review the buyer’s proposed easement language and advise on valuation and terms before any final sale or closing.
