Selling Your Cell Lease
Once your local government leases property for a cell tower or cell antenna, you will routinely receive offers to buy the cell tower lease for a lump sum payment (often plus a percentage of future revenues), coupled with a long term (or perpetual) easement. The most common question is whether these are good deals for governments. This program, taught by John Pestle, Esq. and Dr. Jonathan Kramer, Esq., both highly experienced local government telecommunications attorneys, covers (1) how to determine whether a sale of a cell lease and future leasing rights is in a municipality’s best interest, (2) descriptions of the non-binding bid process which will commonly lead to the best price and terms, (3) the significant legal issues, business issues and potential pitfalls involved in selling the lease, and (4) some of the traps hidden in the lengthy “Communications Easement” you will be asked to execute. This program will help you spot the major issues in the very one-sided documents typically offered by buyers. Key points to be addressed include (a) making sure the municipality is not hindered in using its property for its primary public use; (b) ensuring that future sums and duties promised by the purchaser in fact are performed; (c) unique insurance and bankruptcy issues; (d) special questions of municipal authority; (e) compliance with bond obligations and IRS tax-exempt bond regulations; (f) municipal finance/procurement statutes; and (g) prohibitions on waste. Extensive handouts in PDF format will be provided to participants, which commonly include local government attorneys, city managers and the real estate property managers working for local governments. A lively and interactive Question and Answer session will follow the presentation.
Speakers: John Pestle & Jonathan Kramer