Niceville council authorizes negotiations with Diamond Communications to market city properties for cell towers

The Niceville City Council on the evening agenda authorized the city manager to enter negotiations with Diamond Communications to market city‑owned properties to wireless carriers, a first step that would not obligate the city to host new towers unless a later lease or ground‑lease agreement is approved.

Cameron Lee, site acquisition manager for Diamond Communications, told the council his firm identified coverage gaps in the southern and eastern parts of the city and proposed an exclusive site‑marketing arrangement that would add city parcels to Diamond’s portfolio and present them to major carriers. “What we have laid out in the contract or what we’re offering is…a revenue share of 50%, which is pretty standard, with municipalities,” Lee said, describing a 50% split on new tower ground leases and higher shares for colocations to existing infrastructure.

Why it matters: the proposal aims to improve cell coverage in parts of Niceville that carriers’ coverage maps label unreliable while creating a potential long‑term revenue stream for municipal property. Lee said carriers typically sign long ground leases (about 25 years) and that Diamond would be the owner, builder and operator of new towers, with carriers leasing antenna space. He also described FAA and FCC reviews, tower‑removal bonds and site‑specific planning steps that would follow any ‘hit’ from a carrier.

Council and staff pressed Diamond on details. City Attorney Steve Hall asked how compensation is split; Lee said the typical revenue split for a newly built tower is 50% to the city and that placements on existing infrastructure (for example a water tank) could yield a 75% city share. Lee also said carriers’ monthly payments can range in his experience from about $2,000 to $3,000 per carrier, with annual escalators of roughly 2–3%.

Public comment: resident Judy Bootrow asked who pays the cost to build a tower; council members and staff responded that Diamond represents the developer and that there would be no up‑front cost to the city for the marketing agreement. The firm said it would handle construction costs and that a ground‑lease or other real estate transaction would be negotiated and approved by the council before any build proceeds.

Outcome and next steps: Council moved and seconded a resolution authorizing the city manager to negotiate the site‑marketing agreement; the motion passed. The authorization allows staff to negotiate terms with Diamond and return to council for any final lease or ground‑lease approvals. The city will continue to seek answers on specific parcel selection, exact revenue projections and contract language, including how stealth or camouflage towers would be handled in negotiations.

Reported by: Cameron Lee (Diamond Communications); motion made on the council floor and approved by vote.