Lease Templates and Emerging Technologies
Municipal governments nationwide, in small and large counties alike, are being contacted regarding leasing their land and/ or local structures to facilitate wireless telecom transmissions. Steel in the Air serves local governments, public and non-profit entities and large-scale developers nationwide in wireless lease negotiations with issues spanning the development of new towers, to the deployment of DAS and small cell solutions.
We are industry experts who stay up to date on emerging technologies, and can explain how they will affect your community’s wireless infrastructure now and well into the future. While each solution is as unique as the community its situated in, we can safely say that there are some general concerns common to all.
Many municipalities are stilling relying on the same lease they modified from a wireless carrier’s template lease ten years ago, so while technology and carrier requirements have changed, the leases have not. In some of our recent consultations, this failure to update the municipal cell tower lease from a technical perspective is resulting in the termination of leases and the loss of revenue for the municipalities – losses that could have been prevented.
With the proliferation of new technologies like WI-FI, LTE, and WI-MAX, it’s becoming increasingly more important that the lease language accurately reflect the potential threats these new technologies may present. We are here to help review your lease from an objective and technical standpoint and make suggestions to your attorney on how to implement changes or clauses that will prevent the loss of future revenue from a municipal cell tower lease.
We would be happy to provide references from past municipal clients and a no cost, no obligation estimate for our services. Please contact us for more information.
If you are interested in seeing more information on how your municipality can maximize its revenue from developing its own cell towers for lease, please click here.
We recommend that landowners consider asking for a signing bonus, attorney’s fees, or options payments. However, don’t be greedy when asking for them. You don’t want to scare away your potential cell tower tenant and a lucrative lease just because you pushed for an extra $1,000 up front.
Over the past ten years, the Consumer Price Index (CPI), which measures inflation, has averaged 2.3% per year. This means that to sustain the value of your lease, you would need to receive annual escalation of at least 2.3%.
In the case of lease buyouts, while there may be valid reasons to consider splitting the lump sum payment into a few payments, you should never agree to accept payment terms that stretch beyond three years.