Pine Plains explores cell tower lease options

PINE PLAINS — The town of Pine Plains is in the midst of examining the terms of its cell tower lease with American Tower, as was discussed by town Supervisor Darrah Cloud at a Thursday, May 17, Town Board meeting. 

Cloud raised the issue of the American Tower lease agreement after saying she received communications from the company about revamping its contract. American Tower sent a letter to the town asking if it would agree to a lump sum payment.

“American Tower said in order to rent the tower more to other customers, they need to know they have the lease of the tower for a very long time,” said the supervisor. “They wanted to find a way to lease with us for a very long time. That made sense to me.”

Cloud said that the company offered the town two options: a cash payment in the lump sum of $720,000 or a signing bonus with the promise to stay in the lease for eight additional five-year terms.

Councilman Rory Chase said that it would “probably be cheaper in the long term just to put out a bond.”

The town received $75,000 for the initial sign-up fee and makes roughly $44,500 a year from the lease, according to Cloud. That amount increases by 3 percent every year.

Town Engineer Ray Jurkowski said that the “lease is written so that for every additional cell carrier that goes onto the tower, the town gets additional revenue.”

He called it a “revenue sharing process.”

“We’re going to re-examine the lease,” said Cloud, who added that the status quo has the town with seven more years on its current lease.

“We haven’t made the decision yet,” she said last week. “We just have this on the table. I did reach out to all the mayors and supervisors in Dutchess County about whether they received anything like this. A few had.”

Cloud said “what’s really great about Dutchess County is all the retired IBMers who understand digital technology. The mayors and supervisors are an incredible resource in so many ways.”

While still exploring the town’s  options, Cloud said she is leaning toward the lease extension with the signing bonus.

Councilman Don Bartles said the town is limited to five carriers. It currently has three: Verizon, Sprint and T-Mobile.

Jurkowski added that American Tower and other companies are “sending out letters to municipalities to go with the one-shot deal, but most are not, because monetarily, it just doesn’t make sense.”

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