Niles City Council shoots down sale of lease on tower property

Published 10:30 pm Monday, August 23, 2010

By AARON MUELLER

Niles Daily Star

The Niles City Council approved in June the sale of the lease on a property where a communication tower stands to a company called Unison out of New York City.

But the company wanted the council to approve it by a two-thirds majority vote, something the council did not do in June. So the resolution was again on the agenda for Monday night’s board meeting, and again the motion failed with four voting for the measure and three against.

Council members Dan VandenHeede, Pat Gallagher and William Skalla voted no.

The sale of the lease would have brought in $92,871 in revenue, which would have been used to make repairs to City Hall. Currently, the Niles Utilities Department gets $1,100 a month from U.S. Cellular, which owns the 160-foot tower, for access to the property.

“I have the same problem with this as I had the first time,” VandenHeede said. “Obviously I’m in favor of spending money on City Hall. But I don’t like the trend of robbing from utilities to go to the general fund.”

VandenHeede said taking the money away from the utilities combined with rising costs could mean higher rates for the consumer as well.

He also argued that 10 years’ worth of payments would outweigh the one-time payment from Unison.

Council member Bruce Williams argued that U.S. Cellular could opt out of the lease at any time, leaving the city with much less than $92,000.

“That company could cancel the lease next year,” he said. “Technology is changing. It’s a gamble. We’re gambling on technology staying the same for 10 years.”

Also on Monday, the councilĀ  approved an industrial facilities exemption certificate for Sycamore Creek Cabinetry, a new business located at 1831 Terminal Rd. in the Niles Industrial Park.

The tax abatement is for 12 years and is for equipment and machinery in the amount of $267,105. The company, which produces kitchen cabinets, currently employs 10 people and plans to bring 50 jobs to the community within two years.

The council also unanimously passed the 2011 fiscal year budget. For more information on the budget, read Aug. 13’s Niles Daily Star.