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Council reviews 30-year extension request for TowerCo ground lease; questions on term and revenue
Summary
Council heard questions about an amendment to a ground lease with TowerCo 2013 LLC that would add six five-year renewal terms (30 years) and includes a $5,000 signing bonus; council added the ordinance for first reading March 3.
The Norton City Council discussed an amendment to a ground lease with TowerCo 2013 LLC at its March 3 meeting that would add six five-year renewal terms (a 30-year extension) to an existing salt tower lease and provide a $5,000 signing bonus to the city.
Mr. Mowery introduced the ordinance authorizing the administrative officer to execute the amendment and asked the clerk to read it for first reading. Councilmembers asked clarifying questions about the term length, why the longer term was requested and how revenue from the towers has changed year to year.
Council was told the longer term is requested by the tower operator to provide the certainty needed to market space on the tower to tenants who place antennas; staff said more antennas typically increase city revenue. Staff described a $5,000 signing bonus that Windfall Consulting helped secure on the city’s behalf. Council members referenced recent annual payments and budgeted amounts, noting year-to-year variation in tower revenue.
Procedure: Council voted to add the ordinance (identified in the meeting as ordinance 26-2025) to the agenda for first reading. The item was entered for first reading only; council did not waive readings or adopt the amendment during the March 3 meeting.
Why it matters: A multi-decade lease extension would extend the term of a city property agreement and could affect long-term revenue from antenna space on the tower. Council members pressed staff for clarity on term length, current expiration date, and the revenue history from tenants.
Details reported to council: Staff explained the existing lease runs until the early 2040s and that the requested amendment would add six additional five-year terms. Examples of recent revenue cited in the meeting included roughly $49,394 in 2022 and about $87,851 in 2023; budgeted figures for 2024 and 2025 were described as approximately $51,034 and $52,078 respectively. Staff said TowerCo is not changing its regular monthly payment in connection with the amendment; the signing bonus was an additional one-time payment.
Next steps: The ordinance was entered for first reading; staff said they will return with any additional details if council places the amendment for second reading or adoption.
