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Wrenshall council seeks larger lump-sum from AT&T lease, directs non-binding LOI
Summary
At a June 22 special meeting the Wrenshall City Council agreed by consensus to ask AT&T for an increased lump-sum lease payment, proposing $550,000 instead of the earlier $414,000, after a presentation from MD7 lease agent Mo Benzegala.
At its June 22 special meeting the Wrenshall City Council agreed by consensus to submit a non-binding letter of intent asking AT&T to increase a proposed lump-sum lease payment from $414,000 to $550,000.
Mo Benzegala, MD7 lease agent, presented the results of an AT&T lease audit and outlined two compensation structures offered to the city: ongoing monthly payments or a one-time lump-sum payment. Benzegala said the lump-sum option would create a perpetual easement and explained how the two options were calculated.
Councilors cited current rental fees and the perpetual nature of a lump-sum buyout as justification for seeking a higher upfront payment. The council’s consensus was to submit a non-binding LOI requesting $550,000; the meeting record notes the LOI is non-binding and intended to open negotiation rather than finalize terms.
The record does not show a formal roll-call vote on the LOI; councilors instead reached consensus. The city clerk and staff will prepare and submit the LOI; further negotiation with AT&T and MD7, and any final documents, will be completed before the council takes a formal vote or approves a binding agreement.
