Jackson Jambalaya

Why stop with cell towers? Heck we -- well realy me--I'll "monetize" all the City's leases for a very reasonable fee. It's a win/win. I win and so does me.

simple NPV calculation and a discussion about the appropriate discount rate. The real problem is blowing all the money in year 1 doing stupid stuff. there is no way any of that money would survive past year 1

Good report, KF. Thanks.

The problem is, I don't have the MPV numbers and lease payments for a comparison.

RFP would not be a bad idea.

I've dealt with this before being in the communications business. Typically companies that buy towers will give you 50-10 years worth of income and free tower space for your existing needs, sometimes you can negotiate extra space for future needs. they will want each renter on the site to sign a minimum 5 year lease, at the end of that lease they will jump the prices high and most of the time some of the renters move sites due to it. We had a site like that, after our original lease was up they raised the rates 300%!

This type of sale can be a good thing if the original tower owner is barely getting by after paying maintenance(not just grass cutting but tower lights and structural checks), electric, insurance, etc.. But if you are already making good money from rent then you are basically giving up that future income.

Who in their right mind is going to pay the full term of a lease up front? Isn't that one reason to lease - to spread contractual obligations over time?

um, what was in it for kennuf 'tokes buddy? I am sure there was a scam lurking in the pages of his leather bound day planner.

The city of Chicago sold off all their parking meters for a one-time payment. They also sold off all income from the Skyway toll road, again for a one-time payment.

My point is not that Jackson is Chicago, but that other municipalities have made these types of decisions before us. So we should be able to use their experience to find out if these types of deals are good or bad. Instead of just crossing our fingers and acting like no one else has ever done this before.

There are formulas to determine the desirability of a project, and no 2 projects are identical. The tenant/lessee is working for it's/their benefit. If it's a win/win for both parties great, but I doubt if Kennuf knows the formula.

If Kennuf Stokes is involved, the BOS should run away as fast as they can.

You raise good points and such arrangements may work elsewhere although using Chicago as an example doesn't give me the warmies.

The problem is we haven't seen:
1. A schedule of payments
2. the net present value
3. the discount.

Until then, we are ag'in it. Cash out a revenue stream. So we turn recurring money into one time money. No thanks.

typo in my post above, it is supposed to read 5-10 years of income, not 50!

As KF said, without seeing the numbers no one can say if it is a good or a bad deal. and since it concerns communications systems the state wireless commission likely has final say even if the numbers look great. afterall, they have the right under state law to use those towers as the state needs with no compensation to the local government entity.