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Supervisors discuss Verizon rent reduction request for two county towers, take no immediate action

Westmoreland County Board of Supervisors · September 23, 2024
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Summary

County officials reviewed a proposed fourth amendment from Verizon that would reduce scheduled rent increases for Montross and Nashtown tower leases; supervisors raised concerns about reducing rent and whether Verizon gave required termination notice, and the board decided not to take action at the work session.

Supervisors reviewed a proposed fourth amendment to lease agreements for two county tower sites used by Verizon but did not take action at Tuesday's work session.

An official (Speaker 5) summarized the proposal, saying Verizon was "requesting a 5% reduction in rent over a 5 year term or 1% per year" and describing how the original lease provided successive five-year renewal terms with larger periodic increases. The presenter said the old lease allowed five additional five-year extensions and required six months' notice to terminate.

Supervisor opposition was immediate. Speaker 3 asked, "Why should we be discussing a decrease for them using their towers?" and said the county had borne the initial cost of putting up the towers and should not lower the rent. Other supervisors said they were not in favor of a reduction and recommended assuming the contract remains in force unless Verizon gives notice to terminate.

Board counsel and staff discussed whether Verizon had given the six months' termination notice required by the original agreement; the presenter said he had emailed Verizon's representative three weeks earlier asking whether they would file a notice to terminate and had not received a clear reply.

Chair and several supervisors recommended no action while the county waits for Verizon to clarify its position; staff said they would revisit the issue if Verizon initiates negotiations or provides formal notice. No motion to change lease terms was passed during the session.