The Anacortes City Council on Dec. 15 authorized a negotiated ground lease with Puget Sound Energy (PSE/PSC) for the Mount Eerie summit telecommunications site after years of negotiations.

Staff described the site's history (Kiwanis deeded the summit to the city in 1951) and said the city's previous lease had been in holdover status since 2011. A consultant advised the city on valuation and industry terms.

Key negotiated terms presented to the council included a five-year term with a possible 15-year extension, a guaranteed minimum payment to the city of $6,000 per month ("$72,000 a year"), and a one-time $100,000 payment to the city to compensate negotiation costs (PSE to pay that $100,000 in four installments of $25,000; staff said PSE would issue the first installment if the council approved before year-end). Staff also said the lease includes enforceable transparency provisions requiring PSE to provide the city copies of any sublease agreements and engineering specifications for collocations so the city can review structural and visual impacts.

During Q&A, staff said PSE currently receives roughly $200,000 a year at the site from existing subtenants (staff referenced AT&T FirstNet and a Coast Guard site among current occupants). Council voted to authorize the mayor to execute the PSC ground lease; roll-call recorded unanimous yes votes.

Staff noted that the $100,000 one-time payment would be to the city only and not split with Kiwanis, and that revenue-sharing mechanics and annual reconciliations are described in the lease exhibits in the packet.