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Middletown council approves T‑Mobile lease renewal with lump‑sum payments and 4% annual increases
Summary
Council approved a resolution renewing the town’s cell‑tower lease with T‑Mobile, setting a 5‑year term (with automatic successive renewals), an annual rent set at $36,747.59 commencing 06/19/2025, a one‑time lump payment of $6,009.27 and additional negotiated lump sums to normalize prior rates.
The Town of Middletown council voted to pass a resolution renewing the town’s lease with T‑Mobile for an existing cell‑tower site. The presentation noted that the original 25‑year lease began in March 1998 and expired on June 18, 2023, but T‑Mobile continued annual payments during negotiations.
Under the approved resolution the lease is renewed for a five‑year term commencing June 19, 2023, with automatic successive five‑year renewals thereafter. The presenter said that commencing June 19, 2025, the annual rent should be $36,747.59 and that the agreement includes a 4% annual increase on each anniversary. The town will also receive a one‑time, nonrefundable lump payment of $6,009.27 within 30 days of execution; the presenter described that payment as a net‑present‑value adjustment that "normalizes" the contract to reflect an effective 5% value while the written escalation is 4%.
The presenter also said there is an additional one‑time payment to reflect the difference between current payments and the new terms and a $3,500 fee to recoup negotiation costs. The finance director confirmed that revenue will be deposited to the general fund. The council authorized the finance director to execute the agreement and approved the resolution by voice vote.
