UPDATE - CELL TOWER AGREEMENT:
We have signed a Cell Tower Agreement for our MHP.
In order to negotiate the Cell Tower Agreement we were able to speak to and learn from the following individuals:
- Individual Who Works In The Cell Tower Industry
- Landowner (With MHP) With Cell Tower Lease
- Landowner (With Timberland) With Cell Tower Leases
- Cell Tower Attorneys
- Cell Tower Consultants
Below is what we learned.
We are NOT Attorneys
We are NOT Cell Tower Consultants
We are NOT Cell Tower Employees
We are just Mobile Home Park Owners who researched Cell Tower Agreements because of a literal “knock” on our front door from a Cell Tower Company.
Cell Tower Agreement is 2 Fold:
a. Option: Option To Lease Land
b. Lease: Lease If The Cell Tower Company Selects To Use Their Option
a. Option: The Option is a One-Time, Very Minimal Payment to the Landowner. The Option basically gives the Cell Tower Company a time frame to obtain Surveys, Permits, Costs, Profits to determine if the Cell Tower is:
i. Feasible: Does the Government give its approval?
ii. Profitable: Is this Profitable for the Cell Tower Company?
b. Lease: The Lease is a Monthly Payment to the Landowner once “Physical Preparation Of The Site” begins. Since “Physical Preparation Of The Site” has no defined time frame, the Landowner would want to make sure that they specified a Drop Dead Date that the Lease (Monthly Payments) begins.
Cell Tower Agreement - Clause - “Right Of First Refusal” - On Land Under Cell Tower & Easements For Cell Tower - Bad For Landowner:
“Right Of First Refusal” gives the Cell Tower Company “X” Days (such as 30 Days) to step in and buy the Land (at the same Terms or in some cases lower Terms) when you have a Ratified Contract from another Buyer. This Clause causes a lot of “Potential Buyers” to not place a contract on your MHP if you choose to sell. Why would a “Potential Buyer” want to negotiate a Ratified Contract with you only to have to wait “X” Days (30 Days) to see if they are “really” able to purchase your land?
Lease - Others Will Buy:
Once the Cell Tower has been placed on your Land you could potentially get 3rd Parties contacting you asking to purchase your Cell Tower Lease (the “Paper” that states that the Cell Tower Company will give you “X Dollars Per Month For X Years”). You could potentially sell your Cell Tower Lease (Not the Land…Just the Lease). You would still have the Cell Tower on your Land, but you would be selling out the Lease (Monthly Payments) for a one-time Lump Sum Payment.
May everyone have Cell Tower Companies knocking on your doors
If you do, please educate yourself.
We spoke to several Cell Tower Attorneys and Cell Tower Consultants. We had the Option to use them.
There is a risk and reward there.
As for the Attorneys the one, local Cell Tower Attorney said that “sure…he could help us…we just needed to give him a $6,000 retainer”. The other Cell Tower Attorney said that he charged $500 per hour. Both were very nice.
As for our Cell Tower Consultant he one missed our first scheduled phone meeting and was late for the second scheduled phone meeting. I asked for his ‘Rates’. Unfortunately, I never received a “Clear, Defined Rate Schedule”. He was also nice.
One of our friends who is a major Landowner (Timberland) and who has several Cell Towers currently on his property reviewed our Cell Tower Agreement.
In addition a friend of a friend who previously negotiated Cell Tower Agreements for the Cell Phone Companies was able to educate us.
Lastly, a Mobile Home Park Owner with a Cell Tower was able to educate us also. He had used two Attorneys and had a bill around $6,000 for their services. This MHP Owner was the one with the “Right Of First Refusal” Clause which was causing issues selling his MHP. However, he was able to get his Cell Tower Company (a large, nationally traded Company) to pay for his $6,000 Attorney Bill in a “Signing Bonus”. Our Cell Tower Company (a small, local company) did not seem very keen on a “Signing Bonus” (well they said “No”).
Thus, we selected not to use an Attorney nor Cell Tower Consultant.
However, if you find yourself in this situation, please pursue all your options.
We wish you the very best!