The Selectboard of Springfield, VT recently met with American Tower, remotely to talk about a tower’s future. The issue was whether or not to grant a lease extension to the towerco, reports The Vermont Journal.
American Tower requested to extend their ground lease on the cell tower. The tower company would like to extend its lease until 2062, well beyond its current contracted term of 2032. Barring a lease extension, American Tower has offered to purchase the tower for $300,000. Under its current arrangement, American Tower is, at best, breaking even.
The advantage to American Tower is that a lease with a longer term would be more desirable to a potential buyer. There are only 12 years left on the present lease. An extended term would continue the current lease provisions. The town of Springfield earns $2,202.82 each month, with a three percent escalation each May.
Dawn Christmore, a lease consultant for the town attended the Zoom meeting to answer questions about the extension. She pointed out that both the police and fire departments are allowed to install equipment on the tower, rent-free. The tower was originally built by Verizon in 2007. It was sold to American Tower in 2015.
The request to extend the lease was approved subject to the town attorney’s approval.