How Municipalities Can Maximize Revenue Through Cell Tower Leases

As a member of a government or municipality, you understand the benefits of receiving recurring revenue. A cell tower lease can provide your government the much needed capital it deserves to fund public projects.

Cities, counties, and states often find themselves in a highly leveraged position when it comes to negotiating cell tower lease agreements. As large land owners that are countless opportunities to locate a cell tower on municipal land.

Municipalities can mostly dictate terms and require the use of their lease agreement. This is contrary to how the industry typically operates, which is signing of a new lease on an agreement drafted by the wireless carrier.

Cities Can Control The Cell Tower Leasing Process

This image shows what can happen when a City or a County does not dictate their aesthetic requirements correctly to their tenants. Both the Sprint and the Verizon cell site installations are on light poles. The light poles provide light to the baseball field on the public park below. The Verizon cell site was required to have a shroud around their antennas. For whatever reason the Sprint site was not and as you can see presents an ugly site for the surrounding community.

Why Cell Tower Leases Matter for Municipalities

The demand for wireless connectivity is increasing exponentially. As 5G networks roll out across the country and the number of connected devices surges, wireless carriers are seeking new locations for antennas and equipment. Governments and municipalities are uniquely positioned to benefit from this demand. As large landowners, cities and counties offer a multitude of sites that are ideal for wireless carriers—parks, utility easements, government buildings, fire stations, and water towers, to name a few.

By leasing a portion of municipal property to a wireless provider, a city can generate thousands of dollars in annual rent. Over the life of the lease, this income can exceed hundreds of thousands—or even millions—of dollars. The best part? The lease payments are recurring and generally escalate over time.

Municipal Leverage in Lease Negotiations

Cities, counties, and states often find themselves in a highly leveraged position when it comes to negotiating cell tower lease agreements. Unlike private property owners, municipalities have the authority to impose zoning and permitting requirements, and they control access to large swaths of land. This positions them to dictate terms and conditions that are far more favorable than what private landowners might receive.

One key advantage municipalities have is the ability to use their own lease agreement templates. This is a significant departure from the industry norm, where wireless carriers typically present a pre-written lease in their favor. Municipal lease agreements can—and should—be tailored to protect the public interest, ensure regulatory compliance, and maximize revenue.

Controlling the Cell Tower Leasing Process

Municipalities can and should take control of the cell tower leasing process from the start. This includes deciding which locations are eligible, what the aesthetic requirements are, and how revenue will be allocated. Without clear guidelines, carriers may install equipment in a way that negatively impacts the surrounding community.

Consider the image referenced in the original text: two wireless carriers, Sprint and Verizon, installed antennas on light poles in a public park. While Verizon was required to enclose its antennas in a shroud to preserve visual appeal, Sprint was not held to the same standard. The result? A visibly unappealing installation that detracts from the local environment. This is a prime example of what can happen when aesthetic guidelines are not clearly articulated in lease agreements or zoning conditions.

To avoid such scenarios, municipalities should establish:

• Clear aesthetic requirements
• Uniform permitting processes
• Defined installation standards
• Guidelines for site maintenance and upgrades

The Role of Expert Guidance

While municipal staff may be highly capable in areas such as urban planning, public works, and finance, negotiating the nuances of a cell tower lease requires specialized industry knowledge. The financial terms of the lease—including rent amount, escalation clauses, revenue sharing, co-location fees, and termination rights—can significantly impact a municipality’s return on investment.

This is where engaging a seasoned expert like Nick G. Foster of Airwave Advisors becomes invaluable. With over a decade of experience in cell tower lease negotiations, Mr. Foster has helped numerous municipalities—including the State of Nevada and the City of Beverly Hills—navigate the complexities of lease structuring, lease sales, and litigation support.

By partnering with a consultant who understands the wireless industry from both the municipal and carrier perspectives, governments can:

• Ensure fair market rent is being paid
• Secure favorable terms and conditions
• Avoid hidden pitfalls in lease language
• Prepare for future upgrades and 5G deployments
• Understand the long-term value of lease assets

Lease Renewal and Buyout Opportunities

Many municipalities already have existing cell tower leases in place, some of which were signed decades ago under outdated terms. In today’s market, those leases may be significantly underpriced or overly favorable to the wireless provider. When a lease approaches renewal, it’s an ideal time to reassess the agreement and renegotiate more advantageous terms.

Additionally, municipalities may be approached with offers to sell their lease agreements in exchange for a lump-sum buyout. While the upfront payment can be tempting, it’s important to understand the long-term implications of giving up a recurring revenue stream. An expert advisor can provide a comprehensive lease valuation and help weigh the pros and cons of accepting a buyout offer versus continuing to receive monthly rent.

Regulatory Compliance and Risk Management

Operating wireless infrastructure on public property comes with legal and regulatory responsibilities. From environmental regulations to ADA compliance and public safety considerations, municipalities must ensure that installations meet all applicable standards.

Lease agreements should include:

• Indemnification clauses
• Insurance requirements
• Access protocols
• Termination and relocation provisions
• Equipment removal obligations

Airwave Advisors carries the required licenses and insurance policies to serve as a qualified vendor for municipalities. Their comprehensive approach ensures that leases not only generate revenue, but also protect public assets and mitigate risk.

Community Benefits and Public Perception

When properly managed, cell tower leases can bring substantial benefits to the community:

• Funding for schools, parks, and libraries
• Improved wireless service and public safety communications
• Revenue without raising taxes or cutting essential services

However, public perception can be a challenge. Community members may raise concerns about the visual impact, health effects, or location of towers. Transparent communication, public meetings, and aesthetic planning can help build community support and prevent pushback.

Future-Proofing Municipal Agreements

The wireless industry is evolving rapidly. With 5G, the Internet of Things (IoT), and smart city technologies on the horizon, municipalities must think long-term when drafting lease agreements. Key provisions to include:

• Flexibility for equipment upgrades
• Co-location rights for multiple tenants
• Revenue sharing for additional carriers
• Clear language for early termination or relocation

Municipalities that plan ahead will be better positioned to adapt to changes in technology, demand, and regulation.

Real-World Success Stories

• City of Beverly Hills: Partnered with Airwave Advisors to renegotiate outdated leases..
• State of Nevada: Engaged Nick G. Foster of Airwave Advisors as an Expert Witness in Cell Tower Lease related litigation.
• Small Rural Communities: Engaged expert guidance to ensure fair compensation for leases, while preserving the character of their neighborhoods.

These case studies illustrate the value of expertise and proactive planning in maximizing lease opportunities.

Final Thoughts: Why Municipalities Should Take Action Now

Wireless carriers are racing to expand their networks, and government land is in high demand. Municipalities have a golden opportunity to secure favorable leases that generate long-term revenue and support public goals.

Don’t let your staff guess at what a good rate is or what acceptable terms look like. Don’t rely on a carrier’s proposal as the only option. Instead, take control of the process with expert support and sign agreements that serve your community’s best interests.

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