Cell tower Lease extension refusal by Landlord, undervalued...

by Pylon Coax
(Radioland, 51, Americas)

A 20 year lease expires in 2 years. The Cell Co.(Lessee) want to renew under their terms ( in their favor, to the Lessor' peril) and for a very undervalued price with termination clauses & conversion to month-to-month with many liabilities shifted onto the Landowner(Lessor). In addition, the Cell co. now does not want to have to pay the ever-increasing annual municipal taxes ("Commercial taxes") levied on the Telecom operations. This means that Landlord revenues will actually decrease over the long-haul, as the Landlord pays for the steep tax increases, for the Cell Co. !

The Lessor (landlord) has carefully and logically explained to the Cell Co. the new base rate requirements ( ~ double the existing old $) and the new terms that are equitable, shifting all liabilities onto the Cell Co. that would be a result of Telecom operations. The Cell Co. calls this unreasonable, and will not negotiate, expecting the Landlord to "fold".

The Landlord will not fold, and will demand, that if no reasonable lease extension is offered by the Cell Co. that the tower will need to be taken down & all Cell Co. personal property to be removed at the date of expiration of the existing lease. A reasonable tough plan, since a Tall tower relocation can cost the Cell Co. as much as 100 to 300 thousand to relocate.

Landlord tower associations exist, and it is worth chatting with local Lessors. If Cell Co's won't negotiate, perhaps let them move the steel ? You don't get an income, but they get disrupted service and a ton of back-breaking worm to do. Might give pause to all non-negotiators ?

Tom Watson said "Think" for a reason.

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Apr 09, 2014
by: Sean

Pylon ... LOL. Sometimes you have to play hardball in negotiations but in the end a contract has to be mutually beneficial for both parties or it will not work long term. Many times the unreasonable terms are being forced on the carrier personnel by in-house legal counsel who you would not hire to remove animal droppings from your property. These legal representatives make up arbitrary, nonsensical terms for these leases that do noting but handcuff the folks trying to run their networks. The good news is these terms are sometimes not as concrete as you are being told and the real terms are decided by the business people and not their attorneys.

While IBM's slogan is "Think"... the wireless carriers legal counsels slogan should be "We are without a clue".....

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