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Council approves updated Verizon easement and resolution acknowledging tax-exempt status

City Council of the City of Mahnomen · March 16, 2026
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Summary

The City Council approved an updated easement and assignment agreement affecting the municipal water tower and passed a resolution acknowledging the city's tax-exempt status in the transaction after incorporating League of Minnesota Cities legal recommendations.

The Mahnomen City Council on March 16 approved an updated Easement and Assignment Agreement related to telecommunications equipment on the city’s water tower and adopted a resolution acknowledging the municipality’s tax-exempt status.

City Administrator Taylor Guenther summarized recommended language from the League of Minnesota Cities that was incorporated into the contract. The additions address structural integrity (requiring Verizon or a successor to pay for an engineering study before adding equipment), procedures to accommodate city maintenance and repainting, and a 180‑day notice process for removal of equipment if the city elects to decommission the tower. The council approved Resolution 3-16-2026-1 authorizing execution of the agreement and noting the city’s tax-exempt status; the motion passed unanimously.

The meeting packet included a Letter of Intent from MD7 showing a proposed purchase price of $517,000 for a telecommunications easement and a longer rooftop Easement and Assignment Agreement prepared for AP Wireless Investments I, LLC (APWII). The recorded draft agreement in the packet contains inconsistent numeric text for the “Acquisition Price” (the contract language prints a garbled figure). The council approved the resolution to execute the updated agreement as presented and directed staff to finalize paperwork consistent with the agreement’s negotiated terms.

The action authorizes the mayor to sign the agreement and confirms the city’s intention to preserve the ability to perform maintenance on the water tower while allowing telecommunications operations under the new easement language. Council members said they sought protections for structural and maintenance issues before finalizing long-term telecom uses of the tower.