Roy City Council passes motion to approve 35-year cell site lease agreement with TowerPoint

The Roy City Council passed a motion to approve a revised proposal for a 35-year cell site lease agreement with TowerPoint, a company that specializes in the acquisition and management of wireless real estate assets.
The motion, which passed on a 3-2 vote Monday, April 14, provides the City of Roy a prorated lump sum payment of $322,000 along with 50 percent of the monthly rent purchased by Verizon from TowerPoint.

The City of Roy began discussions with TowerPoint in 2024. The cell site is located on the Roy water tower.
A representative for TowerPoint said the lease agreement will account for periods of time when the tower requires maintenance that might disrupt service. The rent-to-purchase amount was originally listed at $2,281 but, as of the 2025 revised proposal, had decreased to $1,920.

Councilmember Yvonne Starks, who voted no on the motion along with fellow member Bill Starks, expressed doubt that the agreement would satisfy Roy’s budget concerns moving forward.

“When I do the math, we lose with these new numbers about a little over $81,000 at the end of 35 years, and there’s no adjustment for inflation in there,” Starks said.

Councilmember Edmund Dunn said that if TowerPoint can bring in additional companies to rent space, that would mean more revenue. Starks countered that the lump payment is going to be gone before the end of 2026 at the rate the city is spending money.

“So, we would be unincorporated by that time and we wouldn’t miss it,” Starks said. “I mean, everything would go to Pierce County. We have to make serious cuts.”

Bill Starks added that he didn’t see “how we’re looking at a long-term future if we do these contracts.”

“How is that helping 35 years from now for the city?” Bill Starks said.

Mayor Kimber Ivy explained that by entering into one of these agreements, Towerpoint ensures that the lease space is filled.

“So, if Verizon chooses to pull out, they will fill it with another person, another leaser,” Ivy said. “How it benefits the city is we’re getting this cash lump sum of 300-plus thousand dollars, which will go towards our budget to get us through the coming years, and we will get 50 percent of the lease that is put in place.”

Ivy said that the 50 percent that is “lost” to TowerPoint is made up for by the city not having to do the work to find someone to rent the space.

“So, it’s more of a win than anything,” Ivy said.

“I think the 35-year lease is what I think is probably best for us,” Councilmember Ryan Muller said, adding that the agreement will provide almost $12,000-a-year in revenue.

Yvonne Starks wasn’t convinced.

“Even our (certified public accountant) said that we won’t have enough money to get us through ’26,” Starks said. “And when I talked to the auditors, they said we won’t be able to get through ‘27. So, 300,000 is not going to push us 35 years.”

“No, but it’s a step to buy us time to find more revenue for the coming years after,” Ivy said.