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Council directs city attorney to pursue lump-sum negotiation with American Tower for city lot
Summary
Council reviewed an American Tower proposal for a 99-year lease of a city-owned lot and directed the city attorney to negotiate the lump-sum option and return a draft contract. The city attorney warned of unilateral rent reductions and recommended taking the money if negotiations stall.
Council reviewed a proposal from American Tower regarding a city-owned lot and directed the city attorney to pursue negotiations on a lump-sum payment while trying to preserve key contract protections.
Chair (Speaker 4) summarized options from a staff memo: American Tower had offered multiple structures, with a staff-read summary indicating a 99-year lease and two alternative payment schemes — one described as a $10,000 bonus plus roughly $599 per month (2% escalation) and another described as $20,000 plus about $566 per month (1% escalation). The memo as read aloud at the meeting also referenced a single lump-sum figure read aloud by staff as "$100,157,000". The council asked the city attorney to review contract provisions and seek improved terms; the chair suggested the lump-sum option could lock in funds up front.
Paige (the city attorney, participating by phone) told council that she has spent extensive time negotiating with American Tower representatives, described recurring unilateral rent reductions by American Tower in past dealings and said the company’s negotiating agents often lack authority. "I lack confidence in their good faith given the way that they've gone about handling this, and I think you're better just taking your money and giving them their lot," Paige said. She advised the council that the negotiation may require compromise on some provisions and recommended focusing on the most important protections.
Council members discussed budget impacts and the potential to place proceeds in the general fund; one council member asked whether the proceeds could be earmarked for water and sewer shortfalls. The chair moved to authorize pursuing the lump-sum option and asked the city attorney to negotiate favorable contract language; the motion was seconded and carried by voice vote. The council did not finalize a sale or lease at this meeting and directed staff and counsel to return with a negotiated draft.Contract details and final amounts will be presented to council once negotiations are complete.
