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Finance committee backs T‑Mobile lease for Middleton water tower after changing rent formula to CPI
Summary
The Middleton Finance & Personnel Committee recommended council approval of a lease with T‑Mobile for antenna space on water tower W‑169 after amending the contract’s rent‑escalation clause to track the Consumer Price Index over five‑year terms rather than a fixed 12.5% increase.
The Middleton Finance & Personnel Committee on Oct. 7 voted to recommend that the Common Council approve a lease with T‑Mobile Central LLC for antenna and ground space on water tower W‑169, after amending the contract’s rent‑escalation language to tie increases to the Consumer Price Index (CPI) over the previous five‑year period.
The amendment — moved during committee discussion and seconded — replaced a fixed “12.5% per five‑year term” escalation with wording that increases rent “by an amount equal to the increase in the Consumer Price Index over the previous five‑year period.” Committee members and staff said the change is intended to protect long‑term revenue for the city’s water utility from inflation.
Alder Myers, who asked to speak on his own behalf, told the committee he supported advancing the lease for discussion but warned that a 12.5% fixed escalation over five years could leave the utility trailing projected inflation. “I think that siting [a] cell antenna on our water tower is a great source of revenue for the utility,” Myers said, and urged the body to “consider building in some sort of inflation protection into our leases with cell carriers.”
Staff reported that at least one existing Verizon lease agreed in 2024 used the same 12.5% structure, and members discussed whether other carrier leases (Verizon, AT&T, Sprint/T‑Mobile) could be renegotiated when they expire to achieve consistency. Staff said negotiations over the tower lease had been ongoing since May or June and that a short delay for staff to check other lease terms would not jeopardize the deal, but the committee proceeded with the amendment and vote.
The committee adopted the amendment by voice vote and then approved the main motion — recommending council approval of the W‑169 lease with the CPI‑based escalation language. No opposition was recorded during the voice vote.
Next steps: the committee’s recommendation goes to the Common Council for final action and execution of the lease would occur after council approval and signatures.
