OT, Cell Phone Tower

gearheadbill · Feb 4, 2019

Delete if this isn't appropriate for this site. A cell phone company has inquired about putting up a tower on the corner of a family farm. This will have a county road frontage on 2 sides and won't require an easement. They have offered $40000 spread out over the course of 50 years for a 100 foot by 100 foot piece of ground on the corner of the farm. Does this sound appropriate and what questions should I ask? TIA

Dieseltech · Feb 4, 2019

Around here I've heard they pay six hundred a month.

Philip d · Feb 4, 2019

Yes ,on that math that works out to only $66/mo. Not sure what?s really fair but it?s no where?s near 600.

Philip d · Feb 4, 2019

There?s 43560 square feet in an acre so that works out to over $3200/ac/year if it was a full acre. I?d be happy with that if they accept in writing all legal liability accociated with the tower and that block of land. If you can get almost 10x that even better! Before you sign anything I?d show the contract to a lawyer to make sure your well protected.

grizz02 · Feb 4, 2019

go to wwwcelltowerleaseexperts .com there they say between 100.00 a month to 45.000 a month I would talk to these people first before I signed anything

sotxbill · Feb 4, 2019

friend also had them throw in a free cell phone with the lease. Doesnt hurt to ask.

Oregon Tractor Jack · Feb 4, 2019

Also remember that the cell tower agreement will require 7/24 hours at 365 days/yr access. I friend of mine has one on his property. He is not allowed to put up any thing that would prevent access. That includes a gate on his driveway. It would have to be really worth it to me.

OTJ

Naylorbros · Feb 4, 2019

We currently have a signed lease and they are working on the zoning and licensing. If the zoning and licensing go through it will be $1400 a month for 2500 sq/ft. Lots of small print in the contracts. There are sites around us that are quite a bit higher on the lease price and several that are a lot lower.

Bob · Feb 4, 2019

Have any of you been asked to sign "non disclosure agreements" preventing various landowners from discussing the terms of the leases openly/with each other?

That was the case with some of the wind "farms" in my area, apparently.

OldFarmTractor · Feb 4, 2019

I would ask for about $4,000 per month for the first set of antennae. If they sub-lease then add $200 per month.
50 years makes no sense. Who knows where the technology will be in 50 years. Go 10 or 20 and renegotiate.

Scott_S · Feb 4, 2019

See a lawyer. Lots of fine print in those contracts.
Look specifically for language that gives tower company right of first refusal for any sale of property. This language may not only refers to the tower location but all attached parcels. Can ruin the title and/or loan value of the whole farm.

Hobo,NC · Feb 4, 2019

Original they offer $875 a mouth I said lets do it then that came back and offered 50K up front for a one time lease 200X200 I declined I wanted those $875 a mouth payments... A bud of mine down the road gets $1000 and I want to be like my bud...

I brought the land as a buffer I will never do anything with it because a large trailer park in on one side of it the only thing that keeps it from growing up to my back yard it that buffer... I am not going to live forever my kids may just want the money out of the sale I don't want a cell phone tower that I had already spent the money to hold the sale up... I would hold out for those large payments

they will continue on long after you are dead...

Stephen Newell · Feb 4, 2019

That may not be a very good deal. They will put up a fence around the hundred feet with razor wire around the top and cover the ground with gravel for $66.67 a month.

DoubleR · Feb 4, 2019

They offered my friend 13.000 a year to put one up on his farm. He just had to give them access to it. They were going to put it by his grain leg that was already high into the sky. The township nixed it and he wasn't going to fight it. That was about ten years ago.

Hoofer B · Feb 4, 2019

My lawyer and I have been dealing with a cell tower company for 6 months now. We finally agreed on a contract and I will sign it on Wednesday. Not a get rich quick thing, but it will make my property worth more if and when I sell it. My FIL has two towers on his property for 20 some years.

Madisonbob · Feb 4, 2019

About 10 years ago we signed a lease for a small plot on the edge of one of our properties. Initially was about $9000 yearly for first five years and increased every 5 years up to 35 years. We sold the property after 5 years and the buyer paid us for 30 years of income. Would do it again in a minute. We still get contacts in the mail wanting to buy our lease out, not realizing we no longer own it. It made our property a lot more attractive to buyers and did not detract at all from the use of the rest of the property.

Take a look at American Tower, a public company that does this for a business. Has been a tremendous stock to own.

TomA in CA · Feb 4, 2019

We have 3 cell sites on our ranch. They are all paying over$2000 per month each. They are all 5 year be contracts renewab to 20-25 years. Access is right through the yard and is a fire lane. It can be a hassle but we have them whipped into shape for now. The first one went in year 2000, others followed. All contracts were negotiate with attorney.

I tried to farm that ranch for neigh 50 year I could never gross over $5000 a year. Great grandma hung on to it because there might be oil. Over $1 million has accrued to family coffers from this crop.

SDE · Feb 4, 2019

An acquaintance has a tower on his property. His neighbors tried to put a stop to it. They though that it would de value their property.
He was happy that he was getting enough to pay his property taxes.

hrRoss · Feb 4, 2019

I have a tower here started out at $750 mo, 10% increase every 5 yrs, 25 yr contract. 30x40ft lot, capable of 5-6 different antenas. they tried to sneak in a bigger lot at signing, I cought it, said itll cost more for bigger lot. tried to get 10% more for each extra antenna on tower, told me well go see your neighbor, so I signed. still only one company on tower

Ray · Feb 5, 2019

There going to satellite phones eventually and a cell tower will be worthless. A lot of the country doesn?t have access to cell phone service. With satellite you get more coverage.

JMOR · Feb 5, 2019

(quoted from post at 00:05:47 02/05/19) About 10 years ago we signed a lease for a small plot on the edge of one of our properties. Initially was about $9000 yearly for first five years and increased every 5 years up to 35 years. We sold the property after 5 years and the buyer paid us for 30 years of income. Would do it again in a minute. We still get contacts in the mail wanting to buy our lease out, not realizing we no longer own it. It made our property a lot more attractive to buyers and did not detract at all from the use of the rest of the property.

Take a look at American Tower, a public company that does this for a business. Has been a tremendous stock to own.

our buyer could have had bad luck if tower company did what happened to my neighbor. Installed & operated tower for a small number of years & then that cell company was merged (taken over & shut down) by another cell company. They told her she had two options 1) leave tower unused at zero rent in hope that another operator might want to use it & resume rent or 2) take it down. After a year or two they decided to take it down since it was costing to keep light on top of it & there was no new user in sight. They removed it by dropping it & crushing remains into large dumpsters. In your case, your buyer would have been out 30 years of rent.

SHALER · Feb 5, 2019

A follow-up to Ray's post below about satellite phone service taking over. I cannot comment on whether that is imminent of not, but nevertheless, a lessor should consider a bond or letter of credit with the tower company for expenses to remove all that crap once the tower goes out of service so you are not stuck with it.

john *.?-!.* cub owner · Feb 5, 2019

When you look at what other people have gotten for lease, also look at population density in that area and major highway traffic. It is number of users that will access the tower that governs the price of site.

OT, Cell Phone Tower

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