Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Leases topic
No spam. Unsubscribe anytime.
Chickasha approves assignment of cell-tower lease to Tower Point for upfront payment
Summary
Council approved an easement and assignment allowing Tower Point Acquisitions LLC to acquire the city’s interest in an existing cell‑tower lease; staff said the city receives about $315,000 upfront in exchange for relinquishing long-term monthly rent rights, with escalation language and revenue-sharing for future co‑tenants.
The council approved an easement agreement and resolution (2024-20R) authorizing the city manager to sign an easement and assignment with Tower Point Acquisitions LLC. The transaction assigns the city’s existing lease interest (currently with T-Mobile) to Tower Point; staff described it as a common financing mechanism used by cellular finance companies.
City staff told the council the assignment would produce a substantial upfront payment—about $315,000—rather than continuing monthly lease revenue at around $1,700 per month. Staff also explained that the agreement includes escalation language and provides for 50% sharing of new additional lease revenue if other carriers lease space in the future.
Council members questioned the long duration implicit in lease assignments and whether the city had adequate protections if the physical tower or equipment is no longer present decades hence. Staff and legal counsel said the city retains controls because approving the easement assignment remains a council decision and that standard escalation and revenue-share provisions are included in the package. The motion to approve the easement assignment passed with one abstention recorded (Burrows).
