Council approves second amendment to Verizon license at Memorial Park, city revenue to decline modestly
Loading...
Summary
The council approved a five-year extension and renewal terms for a lease with Verizon Wireless on Memorial Park property; staff said initial annual rent will be about $26,644 with 12% increases for subsequent five-year renewal terms and that the city and Glacier Twins will receive reduced revenue compared with the original contract.
The Whitefish City Council approved a second amendment to a license agreement with Verizon Wireless that extends the city's lease at Memorial Park for five years with an option for an additional five-year renewal.
City attorney Angie recounted the lease history, noting an original agreement beginning Feb. 1, 2015, and expiring Jan. 31, 2020, and said Verizon has continued to submit payments. Under the amendment, the annual rent in the initial term will be about $26,644 and the agreement provides for a 12% increase for each subsequent five-year renewal period. Angie said Verizon has reduced lease payments broadly and the new terms reduce the city's revenue compared with the original 2015 agreement's escalator structure.
She also noted the Glacier Twins receive roughly 78% of the income derived from the site to support maintenance of Memorial Field, and staff estimated the amendment would reduce the city's receipts by about $11,000 over the initial five-year term (roughly $2,200 per year) compared with historical projections. The council discussed transparency around Glacier Twins accounting; a council member said the Twins agreed to provide more detailed statements about the funds they receive and how they are used.
The council moved, seconded and approved the amendment unanimously.
What happens next: staff said counsel for Glacier Twins will submit a letter for a future agenda item; staff will implement the amended lease terms and the finance office will reflect the revised rental revenues in projections.
