Council weighs tower lease extension and $750,000 buyout offer for municipal tower sites

The committee discussed two separate wireless‑infrastructure proposals affecting city property.

First, staff reported Tower Alliance LLC, representing an ATC entity, asked about extending the lease on the Verizon tower located on a former Blumenschein Farm parcel. The current agreement (tower built c.2003) runs through September 2027 with five‑year renewals possible through 2042; Tower Alliance asked about a longer‑term renewal pattern (the company typically prefers 20+ years remaining on agreements) and the possibility of cotenants. Staff said they had not yet done a deep legal review and recommended involving the city attorney before responding to the company.

Second, staff described an unsolicited offer from Wireless PropCo LLC to buy out the city’s existing T‑Mobile agreement on Water Tower Number 1 for $750,000. Staff explained that if T‑Mobile exercises the current term through 2032 the city would be guaranteed just shy of $300,000 over that period; the buyout offer would convey rights that likely include future extension options to the buyer. Council members generally agreed with staff’s recommendation to retain the existing agreement and to require attorney review if the city pursues any change, noting potential revenue‑sharing when additional cotenants are added.

Why it matters: Long‑term lease extensions and buyouts can provide upfront revenue but may reduce future income or city leverage if additional tenants are added; legal review is important to protect municipal interests.

What’s next: Staff will consult the city attorney for legal review and report back before any decision.