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Crawford council asks staff to seek lump-sum payment from American Cell Tower; members debate lease structure

City Council of Crawford, Nebraska · December 19, 2024
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Summary

The council voted to request staff negotiate a one-time payment of $215,000 plus $10,000 from American Cell Tower for a lease, though some members said they preferred monthly payments or a shorter lease with an inflation escalation clause.

The Crawford City Council voted Dec. 19 to direct city staff to negotiate with American Cell Tower for a one-time lease payment rather than a recurring monthly rent.

Council members debated the financial trade-offs. Council Member Christopher Dean said he preferred a 10-year lease with an inflation escalation clause or continued monthly payments rather than a single lump sum, arguing monthly revenue could better support ongoing debt service and operations. “I would be OK with the 10-year lease as long as there is an escalation clause included that is tied to inflation,” Dean said.

Brent Gebbie suggested investing a lump-sum payout could produce greater returns given current interest rates. Tony Storbeck reported that Brian Miller, the administrator for American Cell Tower, told him the company’s board might consider adding $10,000 to a one-time offer but that the company could make a nonnegotiable counteroffer. Scott Debock suggested using a lump sum to pay down existing loans and remove interest costs.

Mayor Shane Norman asked staff to pursue the request for a single payment of $215,000 with an additional $10,000 designated toward city debt; April Grant moved for that course of action and the motion passed with recorded ayes and no nays. The council also gave Adam (staff member; role not specified in the transcript) authority to negotiate on the city’s behalf.

The council did not finalize a contract at the meeting; the vote directed staff negotiations and set a target figure for the negotiation.