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Finance committee hears two long-term tower-lease proposals with GCI and Vertical Bridge
Summary
Staff presented ordinances to authorize long-term communication-site leases: a proposed GCI lease in Beluga at $2,000/month with a 3% escalator and a Vertical Bridge lease in Kenai at $4,000/month with a 3% escalator. Both include 33% royalties on sublease revenue and reserved borough colocation rights.
The finance committee reviewed two ordinances authorizing long-term leases for communication-tower sites during its meeting.
Mister Hughes described Ordinance 2026-14, a proposed lease with GCI Communications Corp for the Beluga tower site. He said the site previously operated under a land-use permit and a holdover tenancy; the new lease would set fair-market rent at $2,000 per month with a 3% annual escalator, an initial five-year term with four additional five-year renewals (total potential term up to 25 years), and a 33% royalty to the Kenai Peninsula Borough on any subleases. Hughes also noted the borough reserved space on the site for KPB colocation if required.
Hughes later presented Ordinance 2026-22 to authorize a lease with Vertical Bridge S3 Assets LLC at the Wildwood tower site in Kenai. He said the site consists of a 0.44-acre parcel off Redoubt Avenue and that the original agreement (authorized in 1980) had expired in November 2024. The new base lease is proposed at $4,000 per month with a 3% annual escalation and a 33% royalty for sublease revenue (excluding one anchor tenant); staff estimated that sublease revenue might add roughly $1,000 per month. As with other borough communication sites, the lease reserves colocation rights for KPB purposes.
Committee members had no substantive questions recorded in the transcript and both presentations proceeded to the next agenda items. No final votes were recorded during the session.
