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Council OKs $1.125M prepaid 50-year Verizon lease for Tank 3
Summary
Council approved a 50-year prepaid amendment to the Verizon lease for Tank 3 that converts ongoing monthly payments (roughly $2,500/month escalating 3% annually) into a $1,125,000 upfront payment intended to secure long-term revenue and provide near-term capital.
The Town Council voted to accept a 50-year prepaid lease amendment with Cellco Partnership (DBA Verizon) for communications equipment on Tank 3, approving a one-time payment of $1,125,000 in exchange for long-term use rights.
Staff explained the current arrangement (a lease in place since 1998 that typically renews every five years at rates currently a little over $2,500 per month with 3% annual escalation) and proposed conversion to a prepaid 50-year structure. Staff framed the tradeoff as accepting a lower nominal amount upfront compared with 50 years of nominal scheduled payments in exchange for immediate capital and reduced administrative workload. As staff summarized: "If you kinda look at what $1,125,000 looks like over a 50 year time frame...that all of our debt is 2.54% — that's about $3,900,000" in comparable present-value terms.
Council accepted the resolution with a 6–0 vote; Mayor Pro Tem recused herself because she works for Verizon. Council discussed that the company approached the town with the offer and staff emphasized the town retained protections in the lease to prevent interference with drinking-water operations and to preserve operational control of the tank site. Staff also noted the company may continue to sublease space on the tower as today.
