$580,000 Revenue Stream Secured for City
The Casa Grande City Council unanimously approved a lucrative 25-year lease extension with AT&T that will generate nearly $580,000 in revenue for the city through 2050. The contract renewal for cell tower space at the Public Safety Communications Center passed 6-0 during the August 18th meeting after Fire Chief David Kean presented the agenda item.
The new agreement starts at $19,000 annually and escalates 10% every five years.
Companies and Ownership Structure
The lease agreement involves the City of Casa Grande and New Cingular Wireless PCS, LLC, a Delaware limited liability company that operates as AT&T. Fire Chief Kean clarified the corporate structure during his presentation: “On the ordinance it does say, New Cingular Wireless, but it is AT&T.”
The original lease dates back to August 23, 2000, when the city first entered into an agreement with what was then AT&T Wireless PCS, LLC. Through corporate changes, the lease now operates under New Cingular Wireless PCS, LLC, which continues operating under the AT&T brand.
Historical and Future Lease Structure
The tower lease has generated steady revenue for Casa Grande over the past 25 years. The original 2000 agreement established a $10,000 annual base rent with built-in inflation adjustments. A first amendment in 2015 added additional lease area for a generator and backup power supply, increasing annual rent by $2,400.
Under the new second amendment, AT&T will pay rent increases of 10% at the beginning of each renewal term:
- 2025-2030: $19,000 annually
- 2030-2035: $20,900 annually
- 2035-2040: $22,990 annually
- 2040-2045: $25,289 annually
- 2045-2050: $27,817 annually
Chief Kean noted the long-term nature of the commitment: “I can’t believe I’m signing a lease that probably will expire after I’m dead.”
Tower Location and Equipment
The communications tower stands at the Public Safety Communications Center located at 520 North Marshall Street.
The 150-foot monopole tower serves multiple purposes. The tower accommodates both AT&T’s commercial wireless equipment and the city’s public safety communications systems for police, fire, and development services. The original agreement was designed to support up to four additional wireless carriers to minimize tower proliferation throughout the community.
The tower sits on city-owned property adjacent to Peart Park, with landscaping and a decorative masonry screening wall providing visual mitigation. The tower uses non-reflective materials.
Revenue Generation for Infrastructure
Chief Kean emphasized the financial benefits of the arrangement, describing it as “infrastructure that you guys own, the city owns, and it actually is going to bring in revenue.” The lease provides a consistent revenue stream while supporting both commercial wireless service and essential public safety communications.
The original agreement included rent abatements during the initial term to offset AT&T’s tower construction costs. Under the original agreement, AT&T built the monopole tower and dedicated ownership to the city upon completion while maintaining equipment lease rights.
Future Expectations
The renewed lease extends through 2050 and includes provisions for equipment modifications to comply with federal, state, or local mandates, including emergency 911 communication services. The agreement allows AT&T to add compliance-related equipment without additional rent payments.
The contract maintains the city’s control over the tower while ensuring continued wireless service improvements in the downtown area. The co-location strategy continues to limit additional tower requests throughout Casa Grande, in an attempt to preserve the community’s visual landscape while meeting growing communication demands.
