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Montrose council backs negotiated downgrade in tower lease to attract carriers, seeks $16,000 signing bonus
Summary
Council agreed to pursue American Tower’s proposal to reduce the city’s lease payment on a communications tower in exchange for broader carrier access and approved requesting a $16,000 signing bonus to offset lost revenue.
City staff presented a proposed lease amendment from American Tower at the Oct. 13 council meeting seeking to reduce the city’s monthly tower lease from roughly $2,200 to $1,875 to help the tower operator attract additional carriers (Verizon is currently the only tenant). The proposal would eliminate the current annual 2% increase and instead apply a 10% increase every five years; staff recommended accepting the $1,875 rate and negotiating a larger signing bonus.
Staff told council the company proposed a $12,500 signing bonus in its offer but the city would ask for $16,000 to partially offset near‑term revenue loss. Staff noted that after four years at the reduced rate the city would be roughly $14,700 less in revenue, and that the five‑year escalation would move rates back toward current levels at the first adjustment.
A council motion to proceed with the American Tower amendment and request a $16,000 signing bonus passed unanimously, 5–0; staff said the proposal expires the next morning and the company has a due‑diligence period before finalizing the amendment. Council discussion did not record alternative bidders or legal review timing; staff will proceed with negotiations and any final contract would return to the council as required.
