Council rejects cell phone tower lease offer
Published 7:39 am Friday, June 29, 2018
The Austin City Council voted unanimously during its regular meeting on June 18 to reject an offer from Landmark Dividend to purchase a cell phone tower lease. The council’s vote came on the recommendation of Administrative Services Director Tom Dankert and Public Works Director Steven Lang.
The lease, currently held by T-Mobile, is for land near the Wastewater Treatment Plant where T-Mobile built a cell phone tower. T-Mobile’s lease runs through Sept. 30, 2032, but must be renewed every five years.
Landmark Dividend approached the city in March with an offer to purchase the lease with up-front cash; however, the lump sum offer of $174,500 was less than the minimum promised total of $254,000 from the current lease, assuming the renewals are made through 2032.
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Landmark Dividend also wanted the lease rights for 35 years as opposed to the remaining 14 years and the lump sum purchase would only be completed if T-Mobile granted the longer lease extension.
The city contacted Landmark Dividend to see if it would reconsider its position on the acquisition price, but Landmark Dividend declined.