Anacortes OKs ground lease with Puget Sound Energy for Mount Eerie telecom site

After years of negotiation, Anacortes City Council on Dec. 15 authorized a ground lease with Puget Sound Energy (PSE) for a telecommunication site at the Mount Eerie summit.

Staff explained the site was deeded to the city by the Anacortes Kiwanis Club in 1951 for park purposes and that PSE constructed towers and equipment under an original lease. The existing lease was in holdover status since 2011. Staff engaged a consultant experienced in valuing cell‑tower sites and negotiated terms recommended to protect park use while updating financial terms.

Key terms presented: a five‑year initial term plus a five‑year extension option; a guaranteed minimum payment structure of $6,000 per month ($72,000 per year) to the city, with the lease requiring PSE to provide annual revenue records and make up any amount above that floor if 66% of revenue exceeds the minimum; staff also said the lease includes a one‑time $100,000 payment to the city (not shared with Kiwanis) split into four $25,000 payments, the first of which PSE offered to issue before year end if council approves. Staff said the lease includes enforceable transparency and sublease review provisions and limits on interference with public park use.

Council moved to authorize the mayor to execute the PSE ground lease; motion carried by unanimous roll‑call vote. Staff said the city currently collects about $28,107 annually under the holdover arrangement and that PSE’s existing site revenue with subtenants could be nearer $200,000; the negotiated minimum and upfront payment substantially increase guaranteed city revenue and build in oversight.