Although there were no immediate
budgetary or productivity challenges,
the Town of Fairfield, Connecticut,
knew there were changes on the
horizon in the telecommunications
industry. They needed a trustworthy
and experienced partner to help
manage eight cell tower sites serving
Sprint, Nextel, AT&T and T-Mobile. The
Town of Fairfield chose Wireless
Capital to deliver the specialized cell
tower lease assignment services they
needed.
The Town’s primary goal was in
locating and partnering with an
experienced company that could bear
the burden of rent collection and
tenant space fulfillment should one
ever vacate. Prior to signing a cell
tower lease assignment financing
agreement with Wireless Capital, the
Town had lease contracts in place with
various wireless carriers, each paying
rent separately. Although none of
these leases had been terminated, the
Town knew this could happen at any
time and cause up to two years in lost
revenue. They simply could not afford
this risk. Town officials looked at the
broad picture and the changing
telecommunications industry and
recognized that there was a significant
likelihood that they’d lose a tenant or
two in coming years. “We didn’t have
the ability to reach out and find new
tenants should this occur,” states
Eileen Kennelly, Fairfield Assistant
Town Attorney.
To address this need and eliminate
their risk, Wireless Capital proposed an
agreement to transfer one lump sum
payment to the Town in exchange for
acquiring full responsibility for rent
collections and space fulfillment,
including revenue loss absorption
should any one of their tenants leave.
At that time, all facilities had tenants
actively paying rent. Wireless Capital
further proposed that after 12 years,
the Town would reacquire this
responsibility or utilize their right to
establish another, similar cell tower
lease assignment financing agreement
with the company.
Secondary to the risk factor but no
less important was the fact that the
Town had no telecommunications
industry experts on staff to adequately
handle the demands of each lease. Not
being their primary line of business,
the Town didn’t have the proper
resources to locate new tenants. They
needed a partner with specialized
expertise and focus. Therefore, the
Town wanted their lease contracts
outsourced to qualified professionals.
During the partner selection process,
the Town of Fairfield invited bids from
various companies in the industry,
receiving just one comparable proposal
at the end of the process. Upon review
and comparison, they were impressed
by the fact that Wireless Capital had
specialized telecom expertise and
could help them in the day-to-day
carrier issues such as equipment
relocation. What was the deciding
factor? “The other company’s offer was
not as attractive,” Ms. Kennelly
explains. “WCP was more flexible and
responsive to our needs. They listened
to what we, as the landlord, needed
and tried to find a way to accomplish
this. This was their main advantage.”
The ensuing cell tower lease
assignment agreement fully freed the
Town from wireless lease cash flow
issues while they retained control over
day-to-day issues. Should a tenant
move something on their tower, this
tenant contacts the Town of Fairfield.
Should they want to re-negotiate the
terms of a lease, they contact Wireless
Capital.
“This lease assignment and agreement
is a win-win for our town, for our
Administration, and for all parties
involved. For Fairfield, the advantage
of having a partner like WCP to work
together to maximize the value of cell
tower leases is important” touted
Kenneth A. Flatto, Town of Fairfield’s
First Selectman. “With WCP’s
expertise, I believe Fairfield is better
positioned to meet the technology
challenges and wireless
communications needs for our town
and public. Your organization has
exhibited reliability, integrity and
professional know-how throughout this
process.”