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Council approves five-year Verizon lease amendment for Memorial Park cell tower
Summary
The council unanimously approved a second amendment to the city's license agreement with Verizon for a cellular tower at Memorial Park, extending the lease and setting an initial annual rent of roughly $26,644 with 12% increases for renewal terms; staff said the change reduces city revenue compared with the original agreement but will continue to fund maintenance of the park's ballfield.
Angie (city attorney) reviewed the history of the Verizon license for a cell tower located on city-owned Memorial Park land and described terms of the proposed second amendment. She said the original agreement (effective 02/01/2015 through 01/31/2020) provided an initial yearly payment "about $18,000" with an automatic renewal structure; the new amendment extends the arrangement for five more years, sets the initial annual rent during the first term at about $26,644 and provides for 12% increases for each five-year renewal term.
Angie told the council that Verizon has been reducing lease payments nationally and that the adopted resolution will reduce the amount the city receives from Verizon by approximately $11,000 over the initial five-year term (about $2,200 per year), compared to the figures in the original contract. She also said the Glacier Twins (the youth baseball organization that uses the field) receive about 78% of the income from the lease—roughly $20,000 per year under prior terms—used for maintenance of Memorial Field.
Council discussed transparency and agreed with a plan to require clearer accounting from the Glacier Twins on how the funds are spent. A motion to approve the second amendment was made and carried unanimously.
Next steps: staff will finalize the amendment, receive forthcoming correspondence from the Twins' counsel and place any follow-up on a future agenda if needed. IT, landscaping and permit follow-ups were also discussed during the presentation.
