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Council approves lease amendments with Industrial Tower West and Verizon; mayor authorized to negotiate escalation terms
Summary
Council approved a second amendment to a lease with Industrial Tower West LLC and amended the Verizon/Alltel lease motion to authorize the mayor to negotiate rent‑escalation language — a change intended to secure a favorable fixed escalator instead of a CPI‑based cap that could reach 15%.
The council approved two telecommunications lease items on Nov. 18. Members voted to approve a second amendment to a lease with Industrial Tower West LLC (Lakewood Blvd. & West Front Road). Council also considered a proposed second amendment to a communications‑site lease with Alltel Corporation, doing business as Verizon Wireless.
Staff advised the proposed Verizon amendment contained language allowing annual CPI adjustment up to 15 percent, while the city’s prior contracts had a smaller cap (3–3.5 percent). City negotiators reported the company representative indicated a willingness to accept a static escalator (for example, 3 percent) but the draft amendment’s wording did not reflect that. Councilmember Lucas moved to amend the approval to authorize the mayor to negotiate and sign the amendment to secure better escalator terms; the motion carried. Item 3 then passed as amended.
Council members who spoke emphasized prudence given recent inflation and the potential budget impact of higher escalators, and said authorizing the mayor to negotiate allows staff to finalize more favorable contract language without delaying the agreement.
