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Council refers long-term Ring Square lease for further review after questions on term, rent and assignment
Summary
Councilors asked for a deeper review of a proposed extension and amendment to a ground lease with Ring Square APC LLC for a 6.71‑acre watershed parcel, citing concerns about a 40‑year term, low annual rent, prior assignments and limits tied to a Special Act of 1986; council voted unanimously to refer the matter to the mayor for negotiation and legal review.
The Pittsfield City Council on Aug. 13 referred to the mayor for further review an order to extend and amend a ground lease with Ring Square APC LLC for a 6.71‑acre parcel in the city watershed in the town of Washington.
Councilors raised four concerns during discussion: the proposed 40‑year term was too long for some members and could be shortened or reopened after 20 years; the proposed annual rent appeared low compared with current rural lease comparables; the lease has been assigned multiple times in the past and several councilors said future assignments should require council approval; and the lease is tied to a special legislative act (referred to in the meeting as Act 75 of 1986), which several members said limits the city’s authority to extend the lease without returning to the legislature.
Councilor [name as in transcript] who reviewed the original paperwork said the special act allows a 40‑year lease beginning in 1986 and noted that the existing lease expires in 2026, which, in his reading, means the council may lack authority under the special act to extend the lease without special legislation. That councilor said he would propose an amendment at an appropriate time but favored referring the order for additional legal and administrative review first.
City staff and the commissioner explained the site’s uses: microwave relay communications and backup wireless connectivity supporting the wastewater treatment plant, city hall, state park services, weather information from Mount Greylock, and a connection to nonprofit Habitat for Humanity. Staff said the site currently does not have cell‑tower relays on the ground and that commercial operators derive revenue by providing connectivity services.
Staff provided examples of annual rents in rural markets (examples cited during the meeting included amounts in Missouri, Alabama, Washington, and Georgia) and the proposed new rent schedule described in the packet: $25,100 annual rent for the first 20 years and $31,000 for the second 20 years (as stated by city staff in the meeting transcript). Several councilors asked the administration to research comparable leases in communities similar to Pittsfield to ensure the city isn’t underselling the asset.
After debate the council voted unanimously to refer the item back to the mayor’s office for further negotiation, legal review and a report back to the council.
Next steps: the mayor’s office and the city solicitor were asked to research comparable leases, confirm the legal effect of the cited special act, and attempt to negotiate a higher lease rate and assignment provisions before returning to the council.
