Carroll County launches legal review after tenant demands $5 million tower insurance

Carroll County commissioners opened a legal review and agreed to pursue one more round of negotiations after a tenant’s letter said a tower lease required $5 million in insurance that the county has not carried.

The issue surfaced during the executive director’s report when staff presented written notice from the tenant/insurer asserting the county was in violation of two sections of a 2017 tower agreement by failing to maintain $5 million in coverage. Commissioners said the county historically carried $1 million through Primex, the risk pool, and that no one could find evidence the county ever paid for $5 million in coverage.

Commissioner (unnamed) said the $5 million requirement ‘‘was in the agreement’’ but that the county ‘‘just never paid it’’ and recommended attempting negotiation to restore the prior coverage level for the remainder of the year or increasing lease payments to cover higher premiums. Another commissioner said they would ‘‘take one shot to negotiate’’ and asked staff to seek a temporary solution if possible.

Several commissioners raised a more forceful option. One moved to begin exploring eminent domain to secure the site if negotiations failed; other commissioners said they wanted staff to research the legal and practical implications before moving forward. The commission agreed to send the agreement to county counsel for review. The motion to refer the matter to attorneys was noted and staff confirmed they would proceed without a formal additional motion.

During public comment, Fred Kane of Wolf asked whether the county carries an umbrella policy above Primex’s $1 million limit and urged considering $5–10 million limits to protect county assets. Commissioners acknowledged that Primex typically limits inter-member coverage to $1 million and that higher limits would need separate arrangements or higher lease fees from tenants.

The commission also discussed ownership and use: staff said the tower structure is owned by the county while the land and an associated building are owned by a separate entity (transcript references to the landowner are inconsistent). Commissioners said Conway and a mutual-aid organization hold antennas on the tower and currently pay no fee for use. Several members suggested contacting those tenants to seek cost-sharing or to clarify obligations.

The commission did not adopt any immediate change to the lease or insurance at the meeting. Next steps recorded in the meeting were: staff will attempt another round of negotiation with the tenant/insurer, counsel will review the 2017 agreement and prior minutes to determine who had signing authority, and staff will report back to the commission at a future meeting.

The commission adjourned the public portion of the meeting and moved into nonpublic session later in the agenda.