Board leans toward lease extension for Warrington cell tower after staff outlines revenue scenarios

Township Manager Angela (S10) walked the Board of Supervisors through amendment options proposed by American Tower for the township's cell tower on Street Road. Management presented numerical scenarios: an amended lease with up to three subleases could yield roughly $652,000 over 10 years under the modeled scenario, while a perpetual easement with payments spread over 10 years would generate about $1,160,000 as a one-time lump-sum arrangement spread over a decade.

Angela explained that the lease-extension option would preserve an ongoing revenue stream and include a 2 percent annual base-rent escalation beginning Jan. 8, 2026, and sublease revenue shares that could escalate at 3 percent annually. Board members asked whether the township would have visibility or approval over proposed subtenants; Angela and counsel (S8) said the draft language could permit the township to review proposed subleases so additional carriers are not added without township involvement.

Supervisor (S9) said option 1C, which keeps annual revenue and allows multiple subleases, "seems to be the most attractive" because it preserves a continuous funding stream rather than a capped one-time payment. Counsel noted that staff and counsel would incorporate suggested changes to the draft amendment and that the board should provide direction on negotiable terms.

The board did not make a final decision but gained consensus to pursue the lease-extension approach (option 1C) and asked staff and solicitor to continue negotiations and return with final language. Specific concerns to address in negotiations included mechanisms to review or approve sublessees and the effect of any stipulation limiting competitive cellular service within prescribed radii.

Next steps: Staff and solicitor will draft negotiated amendment language reflecting the board's guidance and return to the board for final approval.