Marion takes $200,000 buyout from AT&T

Marion takes $200,000 buyout from AT&T

Deal gives city windfall in exchange for 50- year lease

news@theeveningtimes.com

Marion will take a one time cash buyout from AT& T to allow the communications carrier to continue renting space for an antenna on the Patriot water tower.

The city will receive $200,000 from AT& T in exchange for a 50-year lease instead of annual rent. 'We can use the $200,000 more than we could use the $1,700 a month,' said City Attorney James 'Jimbo' Hale.

AT& T currently has a 99year lease with the city for $1,700 a month in rent with an annual three percent increase.

The lease is renewable every five years and the current option is set to expire in 2018. AT& T offered to buy the city out for $200,000 or to lower the rent to $1,200 a month with a two percent increase each year with the same five-year renewal option.

The city council rejected AT& T's original proposal of a $193,000 buy out for a 50 year lease.

When asked his preference, Mayor Frank Fogleman told the city council that he favored taking the $200,000 buy out.

Fogleman said AT& T is looking to scale back on the number of antennas in the area because each antenna can now handle more calls.

'I'd take the money and let them have it,' Fogleman said. 'The technology is changing and they don't need as much space in this area.'

'I would too,' Councilman Bryan Jackson agreed.

Councilman Kelly O'Neal pointed out that the city can still allow other telecommunications companies to install antennas if they want to.

'We can allow more antennas to be put on the tower – from competitors,' O'Neal said.

AT& T still retains the option to cancel the lease with 30 days notice and a $5,000 payment.

By Mark Randall