Delta Village Council Approves Property Sale, Estimated Total Value Over $750K
The First Reading of Ordinance 22-13, authorizing the Village Administrator to execute documents required to sell easement rights of a perpetual easement specifically for the operation of communications tower on Village owned property was unanimously approved by the Delta Village Council at their August 15th meeting. In a letter to Mayor Frank Wilton and Council members, Administrator Brad Peebles broke down the reasoning behind the sale:
In 1999 the Village executed the original lease for the agreed space inside the fenced area of the west tower on County Road 10 to Sprint Communications, who later sold the lease to Crown Castle Investments. The 25-year lease has provisions for renewal of an additional 25 years at the previously agreed rate increase every five years.
Looking at the financial options of selling perpetual easement rights to the same parcel for the same purpose made sense. The negotiation concluded with Crown Castle willing to pay $322,500 for the easement rights. When applying these funds to one of two improvement projects that will require financing, the additional value with these funds being applied up front, reduces interest payments totaling $428,640 when calculated at the current interest rate of 3.0% over 20 years. This calculation brings the total value of the sale to $751,140.
The improvements projects referenced in Mr. Peeble’s letter were the Fernwood Street repair, rebuild and resurface and the replacement of the water tower on Helvetia Street. Crown Castle’s initial offer was $277,000.