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Consultant urges tougher terms as East Dundee prepares to renegotiate cell‑tower leases
Summary
A consultant recommended that the village seek market‑rate rent escalators, holdover provisions, power‑cost reimbursement, environmental and EME studies, and longer notice/termination periods as AT&T and American Tower leases approach expiration; trustees directed staff to begin negotiations and to complete a fiscal analysis before accepting signing bonuses or long extensions.
A telecommunications consultant told the board the village's three wireless leases (AT&T, Verizon and an American Tower site hosting T‑Mobile) vary widely in age and terms and should be renegotiated before they renew.
Scoop Chapman of Municipal Services Associates advised the village to seek rent escalators tied to contemporary inflation, holdover clauses so carriers continue paying rent while a new agreement is negotiated, and reimbursement for power costs via submeters. Chapman also recommended adding environmental protections (for generator fuel spills and emissions), requiring third‑party electromagnetic‑energy (EME) reports, increasing insurance and liability limits, and extending notice periods for terminations and extensions to allow time for legal and engineering review.
Chapman said one carrier's proposal included a signing bonus and an option that would extend control of a site decades into the future; he warned the village to be wary of very long easements and rights that could limit municipal control. On revenue share, he said current percentages look low and suggested the village consider a larger share if more carriers locate on a tower. “The escalator clause should be contemporary with the inflation rate,” Chapman said; he added the village should require reimbursements for staff time and emergency call‑out fees.
After the presentation trustees directed staff to reach out to AT&T and American Tower and begin longer negotiations while staff prepares a fiscal analysis of any signing bonus or extension offers.
