CC PACKET 04021996 - Laserfiche WebLink

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L4 BERNICK AND LIFSON A PROFC3510NAL ASSOCIATION ATTORNEYS AT LAW 1833 A. SUSSMAN 3UITC 1200, TMC COLONNAOC tAL30 AOMITTCO IN WISCONSIN 'ALSO C[RTVICO PUSL1C ACCOUNTANT N EAL J. SHAPIRO 5300 WAYZATA BOULCVARO SAUL A. BERNICK* MINNEAPOLIS, MINNESOTA SS416-1270 LEGAL,IS311TANT3 THOMAS O CRCIOMTON JO BROWN SCOTT A. LIPSON TCLEPMONC (612) 5a6-1200 JOAN M. SCI-IULK ER3 OAV10 K. NIGHTINGALE? FACSIMILE (6121 Sa6-1003 KATHRYN O. MASTER MAN PAUL J. OVAST* THERESA M. KOWALSKI RC6CCCA J. HELTZCR ROBERT J V. VOSE ' XMMORANDUM . , To: Municipal Clients and Interested Individuals From: Thomas D. Creighton Re: Attached Personal Communication Systems (PCS) Lease and Option Agreements Date: March 7, 1996 In response to numerous requests from our municipal telecommunications clients from around the country, we have reviewed over fifty(50) existing leases for tower facilities in municipalities. We have prepared the attached sample lease and option agreement which we believe incorporates the best provisions of the leases we have reviewed. The option agreement is included since some providers wish to secure an "option" until such time as they can conduct the necessary site location appropriateness technology studies. The lease includes the provision for two kinds of rent and one additional kind of "in-kind" remuneration. The rent provisions include a base rent either calculated on a monthly or annual basis, and a percentage of gross revenue at such time as such calculations would exceed the base rent. We are aware that some providers will certainly object to a percentage of gross revenues both from a philosophical perspective and from a practical argument that such revenues cannot be attributed to one antenna. Such disputes will need to be negotiated between the city and the provider. The municipal philosophical argument is that if profits are made from the location of the antenna such that the base rent is woefully inadequate, the city should share in the success of the antenna. We have ranges of rents charged for such antennae by other cities but have not included them in the attached documents. Different situations and locations may well dictate different rates. We have determined that cities should either negotiate a rental which is in line with other such facilities in town (recognizing that the PCS systems probably have far greater revenue potential than some existing leaseholders in your community), or contact us, and we can provide you under separate 0 cover the range of rents charged by other cities.