Monday, July 9, 2018
Christmas in July: Township Nets $2M Upfront in Restructured Lease Deal
SBA Communications will pay Lower Makefield township $2 million upfront under a restructured lease agreement, reported Bucks Local News. Under the agreement, the township will receive a lump sum payment of $2,020,000 from SBA and a 35-year lease on the site. Currently, the township receives annual lease payments in addition to a share of the revenue from the carriers that have co-located on the tower.
“What we’re getting here is 18 years worth of rental fees right up front today,” said Township Manager Terry Fedorchak. “There are pros and cons to that, but I would think that would be a very attractive play for us to make at this time.” Fedorchak, a strong proponent of the deal, added “It’s guaranteed,” whereas the current lease arrangement is not.
The township first signed an agreement with SBA Communications in 1999, allowing the company to construct a cell tower on township-owned land, according to Bucks Local. Continue Reading