| While cell towers actually started being built in the | | | | renegotiate. Many times, the wireless company that |
| late 1970's, the boom in development did not really | | | | owns the tower will be in touch way before the |
| start until Congress passed the Telecommunications | | | | lease expires to renegotiate.If the lease does not |
| Act of 1996. Instead of having two wireless | | | | give the landowner the right to terminate, then the |
| providers in any one area, customers now found that | | | | chance of successful renegotiation declines. The only |
| there were up to eight companies with licenses from | | | | basis for renegotiation would be if the wireless |
| the FCC to provide Personal Communications Service | | | | company has breached the lease agreement by |
| (PCS) in their area.Initially, each wireless provider built | | | | failing to pay or by violating another clause. It is |
| its own towers and rarely collocated (shared) on the | | | | important to note that most lease require that the |
| other's towers. This made for rapid development of | | | | landowner notify the lessee of a breach and they are |
| communication sites and towers and a plethora of | | | | given the opportunity to cure it. The most common |
| landowners with cell towers on their property. As | | | | reasons for breach in a cell tower lease include failure |
| you can imagine, many landowners had little to base | | | | to pay rent, failure to get approval to sublet the site |
| the lease negotiations on and signed agreements that | | | | to another company, failure to get consent to an |
| were substandard in comparison to today's lease | | | | assignment of the tower, and failure to maintain the |
| rates.Today, with the advent of much information (or | | | | site location as required. If you believe that the |
| misinformation) on the internet, those same | | | | tower owner has breached the lease, seek legal |
| landowners are learning that the deal they signed | | | | counsel and make sure to notify the tower owner |
| might not be a good one. As the standard cell tower | | | | promptly.In the event that you decide that a lease |
| lease is a 25 year lease with termination rights only | | | | can be renegotiated, it is best to hire a consultant or |
| vested in the lessee (cellular carrier), the landowners | | | | attorney with experience with in negotiating wireless |
| often wonder if they can get out of the lease or | | | | leases and whom is familiar with what fair market |
| renegotiate it.The answer to this question is not an | | | | rates are for communication tower and cell site |
| easy one and resides in the cell tower lease | | | | leases. If you determine that the lease cannot be |
| document. Fortunately for some landowners, the | | | | renegotiated, then just sit back and continue to |
| lease agreements signed in the early days after 1996 | | | | receive your "mailbox money".Ken Schmidt is the |
| were not as advanced as those of today. Many lease | | | | owner of Steel in the Air, a cell tower consulting firm. |
| agreements were only for 10 years and landowners | | | | Steel in the Air provides expert consultations on cell |
| with those types of agreements may now have the | | | | tower valuation, cell tower lease negotiations, lease |
| ability to reneogtiate for a better deal.The key here | | | | renegotiations and lease buyouts. Ken has been |
| is that the lease agreement must state that the | | | | quoted on cell towers in the NY Times and numerous |
| landowner has the right to terminate as well as the | | | | other publications. |
| lessee. If so, then that opens the opportunity to | | | | |