Frankfort: The Commercial Lease

The Frankfort and APC Towers/Verizon Lease on Donated City Parkland (Bellows Park)

In a 2024 City Council meeting, City Superintendent Josh Mills presented the City with a binding 48-year lease (45+3 years) and called for a motion to approve it. Without discussion or public input, all members present responded and approved. 

Little else is known about this commercial transaction, in which Frankfort unilaterally repurposed beloved, donated parkland for commercial and industrial use—without a public hearing or meaningful community input. There is no public information if alternative sites were considered (rather than lakeshore parkland), if health considerations were considered, or if they felt this was a prudent location for such a structure. The lease involves APC Towers and Frankfort taking control of Bellows Park and 7th Street Beach, public lands gifted to the City by the Bellows family in 1938.

Here's a direct copy of the lease. The lease is available is for your direct review. The summary below reflects our analysis of the Frankfort lease—let us know if you spot any errors!

A copy of the lease was also available on the CLT Website Homepage in Jan/Feb 2025 with their 2/19/25 meeting announcement.

Our Summary of Frankfort's  Lease Provisions

Our Overall Summary of the Lease: 

The harsh terms of the APC Towers lease with Frankfort show the absolute transfer of land use for the land on Bellows Park. Under the agreement:

• Frankfort has no control over the Bellows Park they leased for 48 years—even if the city sells the land, the lease remains in effect.

• The city is contractually bound for 45 (+3) years with no unilateral exit option, unless APC Towers defaults or voluntarily terminates the lease.

• This is NOT an optional 3 year lease terms - the leae auto re-news with NO way for Frankfort to not accept the auto renewals, unless APC defaults. It's binding with no way out for Frankfort for 48 years. 

• APC Towers can assign the lease to any third party without Frankfort’s consent.

• Frankfort cannot interfere with APC Towers’ operations in any way.

• The lease was null & void, and the Tower could not be built, if it didn't receive CLT zoning approval. 

• The City agreed to assist APC Towers in receiving zoning approval, as explicitly written into their lease with APC Towers, at "no extra compensation"💵 for the City's zoning assistance.

By signing this lease, Frankfort effectively ceded full control of the Bellows Park parcel to APC Towers, a commercial entity, for nearly five decades.

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More Detailed Analysis of APC Towers-Frankfort Lease Terms:

(1) The APC Towers lease is conditional and subject to receiving zoning approval; the lease is is null & void if zoning approval is not obtained. 

The lease contains language stating the tower or agreement is subject to zoning approval. Specifically, in it states that the Lessor (Frankfort) agrees to cooperate with the Lessee in obtaining zoning approvals and other necessary permits. 

Additionally, the agreement includes several contingencies under which the lease could be terminated, including:

1. Failure to Obtain Approvals – If APC Towers is unable to secure necessary zoning, permitting, or governmental approvals, they may terminate the lease​.

2. Environmental Concerns – If hazardous substances are discovered or environmental regulations prevent construction, the lease may be impacted​.

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(2) The lease grants exclusive, long-term, and commercial rights to APC Towers, effectively converting public land into private commercial use.

1. Exclusive Rights to Develop and Use – The lease grants APC Towers the right to construct and operate a telecommunications facility, including but not limited to, exclusive use of the premises, rights to construct, maintain, and alter structures, and rights to access utilities and infrastructure​Frankfort. These provisions suggest that APC Towers has operational control over the site, akin to ownership for zoning purposes.

2. Control Over Property for Commercial Use – The lease includes terms allowing APC Towers to determine the design, engineering, and installation of telecommunications facilities without interference from the City of Frankfort​Frankfort. This demonstrates that while the city retains title, the lessee (APC Towers) exercises functional control over the property, similar to a private owner.

3. Lease Duration and Renewal Rights – The agreement provides for an initial lease term, with multiple renewal options, allowing for long-term commercial use of the property. This long-term commitment aligns more closely with private property usage rather than a temporary government-controlled public use​.

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(3) City of Frankfort's Right to Terminate the Lease (Summary: If APC Towers exercises the lease, the City is bound to the lease terms for 48 years with no right to unilaterally terminate the lease unless APC Towers defaults or a permitted termination event occurs.)

(A) Default by APC Towers

• If APC Towers breaches a material term of the lease and does not correct it within 30 days of written notice, the City of Frankfort can terminate the lease​.

• If APC Towers fails to make a required payment within 15 days of written notice, this also constitutes a default​.

(B) Inability to Obtain or Maintain Governmental Approvals

• APC Towers may terminate the lease if it determines that zoning, permitting, or other approvals are unattainable or insufficient.

• This means if zoning authorities revoke or fail to grant required approvals, the lease could be terminated.

(C) Technological or Economic Unsuitability

• APC Towers can terminate the lease if it determines that the site is technologically unsuitable or if any construction in the vicinity blocks signal transmission​.

• If APC Towers decides that the site is no longer economically viable, they may also terminate the lease​.

(D) Condemnation or Eminent Domain

• If any portion of the leased premises is taken by eminent domain, APC Towers may terminate the lease​.

• If only a part of the property is taken and the tower can still function, the lease continues, but rent is reduced proportionally​.

(E) Hazardous Substances

• If hazardous substances are found on the property in violation of environmental laws, APC Towers can terminate the lease​.

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(4) If APC Towers exercises the lease, the City is bound to the lease terms for 48 years with no right to unilaterally terminate the lease unless APC Towers defaults or a permitted termination event occurs.

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(5) Further restrictions on the City Frankfort in the Lease: 

• If the City of Frankfort sells the property to a third party, the lease remains valid, unless the new owner agrees to purchase the lease rights from APC Towers​.

• APC Towers can sublease or license part of the site to third parties without approval from the City​.

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(6) Key Lease Language Supporting Termination of Lease for Lack of Zoning Approvals

• Lease Section states: "During the Option Period, Extended Option Period, and the Term, Lessor agrees to cooperate with Lessee, at no cost to Lessor but for no additional consideration payable to Lessor, to assist in Lessee's efforts to obtain site report, zoning approvals and variances, conditional approvals and any governmental approvals, permits, or licenses."​

• Lease Section provides: "Lessee may terminate this Agreement at any time, in its sole discretion, upon giving written notice to Lessor if Lessee is unable to obtain, maintain, or renew any Governmental Approvals necessary for the operation of the telecommunications facility."​

Implications of These Clauses

• If APC Towers cannot obtain zoning approval or permits, they retain the right to terminate the lease without penalty.

• The lease does not obligate APC Towers to construct the tower if approvals are denied.

• The City of Frankfort is obligated to assist in securing approvals, but the risk of denial rests with APC Towers.

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(7) Can the City Refuse to Renew or ask to terminate the lease? (No, City of Frankfort has no rights to refuse to renew or terminate unless APC Towers or its assignee(s) default)

• During the Option Period: If APC Towers does not exercise the option, the agreement expires after 18 months (or 36 months if extended).

• During the Lease Term: The lease automatically renews every 3 years unless APC Towers notifies the City at least 30 days before the renewal​.

• The City does not have the right to decline renewal unless APC Towers defaults on the lease or one of the termination conditions applies.

• Yes, unless APC Towers defaults or chooses not to renew, the City of Frankfort is contractually bound to the lease for a possible total of 48 years (3-year initial term + 45 years of renewals).

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(8) Can APC Towers Transfer Its Lease to Any Party Without City Approval?

Yes, APC Towers has the unrestricted right to transfer the lease to any party at any time without needing approval from the City of Frankfort.

Key Lease Provisions on Transferability:

• Freely Assignable: APC Towers can transfer the lease to any party without requiring the City’s consent​.

• APC Towers is Released from Liability After Transfer: Once transferred, APC Towers is no longer responsible for obligations under the lease​.

• Right to Sublease or License the Property: APC Towers can sublease, license, or otherwise transfer its rights in part or in whole without City approval​.

• Right to Mortgage or Pledge the Lease as Security: APC Towers can use the lease as collateral or assign it to a lender without City approval​.

Conclusion:

Yes, APC Towers can transfer its lease to any third party at any time without needing approval from the City of Frankfort. The City has no say in who takes over the lease.

Final Summary

1. Frankfort is contractually bound for 45 (+3) years unless APC Towers defaults or voluntarily exits the lease.

2. APC Towers can assign the lease to any third party without needing Frankfort’s consent, and once assigned, APC Towers is relieved of obligations.

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(9) Our conclusion: The APC Towers Lease Is Functionally a Transfer to a Non-Government Entity

The lease grants APC Towers exclusive control over the land for up to 48 years, allowing commercial telecommunications operations without City oversight.

• The City cannot interfere with APC Towers’ activities, meaning it has functionally surrendered control over the land.

• The lease allows APC Towers to sublease or assign its interest to other private entities without the City’s approval​.

• APC Towers is a private, for-profit entity that is using the land for commercial gain—meaning it is a “non-government entity”.

• The Frankfort - APC Towers/Verizon lease grants exclusive private control of public land to a commercial entity for decades and is functionally a transfer. Because APC Towers is a private, non-government entity.

Our Questions to City of Frankfort Regarding its Tower Lease 

We wanted to ask City the following questions about its APC Towers lease at the City council meeting 2/18/2025, but the City had been advised by their attorney not to answer any of the public's questions about the Tower. 

(1) Who negotiated the terms of this lease? The lease agreement between COF and APC Towers/Verizon locks COF into a 48-year transfer of the parcel to a commercial entity with:

• No COF control over the parcel during the lease

• No unilateral exit option for 48 years unless APC Towers defaults

• APC Towers’ ability to assign the lease to any third party without COF consent

• A binding contractual obligation for COF to renew the lease upon expiration

Questions:

• Given these long-term binding terms, was the lease reviewed by COF’s legal counsel before approval?

• Were the lease terms ever publicly discussed in a council meeting? If so, where is this documented?

(2) There appears to be no public record of discussions on:

• Environmental impacts of converting parkland to industrial/commercial use

• Alternative site analysis to assess lower-impact locations

• Potential property devaluation of nearby residences

Questions: Were these topics discussed at any point? If so, where can the public access those records?

(3) The lease specifically states that Frankfort will provide zoning approval support. Is this because the Frankfort's signatory on the lease Josh Mills is a zoning expert (also Zoning Administrator for nearby Lake Township. What type of advice was given by Josh Mills to APC Towers regarding zoning permits? 

(4) Did the City Follow the “Good Neighbor” Principle? Crystal Lake Township (CLT) zoning laws require government entities to be "Good Neighbors." As a zoning expert, does Josh Mills believe he upheld this principle when leasing public parkland for a 195-foot cell tower—on lakeshore property where the maximum permitted building height is normally just 28 feet? (R-1 Lakefront height limits exist to protect the beauty of our lakes—so why was this exception made?) 

Answers? None: COF City Council Meeting 2/18/2025: "There's a lot of people here about the tower in Bellows Park," said Mayor JoAnn Holwerda. "I want to let you know that we are aware. Attorneys have been contacted; therefore, we will not be answering any questions." (COF Mayor) But that didn't stop a frustrated community from giving their input. Read more here: UpNorth Live: Community in Benzie County voices concerns over cell tower construction

How Can the Community get Answers? Please see our Frankfort FOIA Page