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Council discusses cell-tower lease changes, expansion options and one-time payout proposal
Summary
A cell-tower operator requested changes to the town lease structure, seeking a lower annual escalation, additional pad space for tenants and an option for a perpetual easement and one-time payout. Council asked staff to research site constraints and legal issues before deciding.
Burns Harbor town staff briefed council members on a proposal from the town’s cell-tower tenant to change lease terms and add ground space for additional tenants. The operator asked to reduce the annual rent escalation from 3% to 2%, to add up to 625 square feet of pad space for up to three additional tenants and to offer a third option of converting the lease to a perpetual easement with a one-time payout.
Council members asked staff to research site constraints — including whether prior use or soil conditions (a possible former septic field) would block expansion to the west — and to obtain a plat showing the exact dimensions the tenant would need. Members flagged potential legal issues with a perpetual easement and asked town counsel and staff to evaluate whether that approach was appropriate for a government entity.
Staff noted the lease currently provides periodic opportunities to renegotiate terms every five years and that the next lease cycle extends for several more years. The operator has requested the change earlier; staff said the operator’s annual payment is due in August and requested the council’s direction for next-year terms. The council did not take action at the meeting and requested additional information, including a plat and a clearer description of the pad location and size, and directed staff to check for any infrastructure constraints before returning the matter for decision.
Council members also discussed revenues the lease generates, noting that current annual rent funds the town scholarship program and that additional tenant payments would produce a modest monthly revenue stream ($150 per month, per tenant, as described by the operator) in addition to the annual lease payment. Members asked staff to confirm whether expansion would affect garage facilities, the police training area or underground utilities.
The item will return to a future meeting after staff obtains the requested plat, site details and legal review.
