AT&T puts cash buyout on the table for Marion antenna rental

AT&T puts cash buyout on the table for Marion antenna rental

Fogleman: ‘ I would take the money’

news@theeveningtimes.com

Marion is considering an offer by AT& T to renegotiate its antenna deal to allow the phone carrier to continue renting space on the Patriot water tower.

Mayor Frank Fogleman said the company approached him about new terms for renewing the deal, which includes a possible one-time cash buyout instead of annual rent.

“They want to lower what they pay us to rent space for their antenna,” Fogleman said. “But they have also offered a cash buy out.”

AT& T currently has a 99year lease with the city for $1,600 a month in rent with an annual rent increase of three percent.

The lease is renewable every five years and that option is up in 2018.

Fogleman said AT& T proposed lowering that rent to $1,200 a month with a two-percent increase each year with the same five-year renewal option. The company also offered a one time cash buyout of $193,000 for 99 years.

The city council showed no interest in accepting those terms.

Fogleman told the council that AT& T has countered with a $200,000 buyout for 50 years.

“So, they have raised the offer but cut the years,” Fogleman said.

Fogleman said he is inclined to take the buyout because AT& T is looking to reduce the number of antennas it rents.

“They said they have other antenna choices and that’s probably true,” Fogleman said. The technology is getting better to where they can handle more calls and rely on fewer. They have excess antennas and want to cut back. So they are going to let somebody go.

My thinking is, if we are at risk of losing them why not take the cash and move on.”

Councilman Cliff Wood said he still doesn’t like the terms.

“Two hundred thousand and 15 years sounds better,” Wood said.

Others said they were open to the buy out.

“I have no problem taking the $200,000,” said Councilman David Bigger.

Fogleman said AT& T can choose not to renew at the end of 2018 and the city would get nothing.

“I would take the money,” Fogleman added. “In all deals everybody gets to a point where they stop. I’m sure whoever holds out for the most money they are going to let go.”

“I would too,” Councilman

By Mark Randall