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Council directs staff to negotiate proposed T‑Mobile lease extension for Water Tower No. 1
Summary
Staff reported a draft lease amendment from Catalyst Network Services (for T‑Mobile) proposing $3,500 monthly rent with a 15% escalator every five years; Alderson McIntyre urged staff to negotiate for higher initial rent and the council directed staff to pursue negotiations.
City staff briefed the Committee on a draft lease extension request for Water Tower No. 1 from Catalyst Network Services on behalf of T‑Mobile.
Staff said the current lease began in 2007 and that the draft amendment would take effect on Aug. 1, 2027, offering six 5‑year renewal terms. Catalyst proposed a starting monthly rent of $3,500, noting the alternative market figure would be slightly higher (the contract projection showed a final term monthly lease of a bit more than $3,700). The draft would replace the current 3% annual escalator with a 15% escalator every five years.
Alderson McIntyre, who said he handles similar negotiations professionally, recommended negotiating a higher starting rent (suggesting an approach around $3,600 to $3,700) but said he would accept $3,500 if negotiations did not yield improvement. Council directed staff to follow McIntyre's recommendation to negotiate terms with the vendor and return with proposed terms.
Staff said they do not have a strong position yet and will pursue negotiation points including starting rent and escalator structure.
