T-Mobile equipment relocation on Peekskill water tower could cost city about $132,068, staff say

City attorney Eric reported that equipment installed by T-Mobile on a roughly 100-year-old, nonoperational water tower at 138 Benefield Boulevard must be removed before the city can replace the tank. Engineers and the water superintendent said the old tower needs to come down to allow construction of a new tank funded by a 60% grant; the equipment could be relocated to an adjacent tower but the existing lease apparently does not obligate the carrier to pay relocation costs.

Eric said the city is negotiating revisions to the carrier agreement and cited a contractor estimate of $132,068.11 to take down the equipment, move it to the nearby tower and install supporting gear. He told the council grant funds for the tank replacement cannot be used to pay carrier-contractor charges and that staff have analyzed legal options and may discuss details in executive session. Council members pressed staff on lease length and rental income; Eric said current lease terms include carrier renewal options and estimated rent around $3,500 a month, and staff will seek contract revisions for future leases to make carriers responsible for relocation when towers become obsolete.