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Council delays decision on Verizon ground lease renewal at Griffey Hill, seeks comparable data
Summary
Council debated a proposed renewal/extension for a Verizon ground lease (expiring 03/31/2026) for a site on Griffey Hill; Verizon's offers ranged from ~$8,680/year to $15,000/year in prior correspondence. Council voted to table the matter to the next regular meeting and requested staff obtain comparable lease data and other information.
Riverton staff briefed council on the impending expiration of a ground lease for a cellular tower site off Airport Road on Griffey Hill (current lease expires 03/31/2026). Staff said Verizon initially offered renewal terms mirroring current escalators (~$8,680.55/year) and at one point offered $15,000/year with 10% escalation every five years; subsequent Verizon representatives rescinded the May 2025 inline offer as stale.
Council members debated equity and city asset stewardship: some argued 'ground is ground' (land value should determine rent), others noted differing technical value of elevated sites and that Verizon may sublease or have other revenue streams at the Main Street site (managed by American Tower) that affect comparability. Concerns included the risk of losing an ongoing revenue stream if negotiations fail versus the duty to capture fair market value. Several councilmembers asked staff to research local and regional comparables for tower ground leases and to report on other city ground leases and existing communications leases.
Outcome: After discussion, the council voted to table action and directed staff (City Administrator Butterfield) to seek additional comparable lease rates and provide more information at the next regular meeting. The lease remains set to expire March 31, 2026; council noted there is limited time but supported a careful, informed approach.
