Council denies AT&T request to renegotiate lease at Beechwood water tower

The City of Lake Jackson City Council voted Monday to deny AT&T’s request to renegotiate its lease for communications equipment on the Beechwood water tower.

Council members discussed a proposal from AT&T to extend its lease (the existing lease runs through 2038) to a longer term in exchange for a reduced monthly rate and a lump-sum payment. According to staff, AT&T characterized the industry-wide expansion of 5G as a driver for its request and said it was reexamining lease rates across its network.

Council members said they were not inclined to accept a lower recurring rate or an easement that would permit unfettered access to the tower. Council noted the city’s need to control access to critical infrastructure and expressed concern that an easement allowing “come and go at will” would undermine that control.

Councilman Senhania moved to deny AT&T’s request; Councilman Baker seconded. The motion carried on a voice vote; the mayor said he would inform AT&T of the council’s decision.

Why it matters: the decision preserves the city’s current lease terms and access controls at a municipal water tower that doubles as critical infrastructure for water services and telecommunications attachments. Council expressed concern about increased antenna density for 5G and the maintenance responsibilities tied to tower access.

Details from the meeting: staff said AT&T proposed extending the term to 2053 with a reduced monthly rate and offered a proposed lump-sum payment. Council signaled that a long extension has little value to the city if it reduces ongoing revenue or cedes operational control through a broad easement.

Next steps: city staff will notify AT&T that the council denied the requested lease changes. Any subsequent proposals from AT&T would require council reconsideration.