The City of Longwood, FL is located in Seminole County with a population of approximately 13,000 people. The City owned the only cell tower on city land, providing valuable revenue for its reserve funds. Impacted by the COVID-19 pandemic, the City monetized the cell tower lease for essential capital to continue providing services to its residents and businesses.
• Depleting Reserve Funds – Due to the COVID-19 pandemic, the City’s reserve funds were depleting, and it needed access to capital to support city operations and services.
• Long-term Interests – The City was engaged with a broker that could not work through the easement to its satisfaction.
Objectives: In order to mitigate the challenges listed above, the City of Longwood needed to achieve the following:
• Gain immediate access to capital to replenish reserve funds;
• Negotiate an agreement that did not give additional space to the buyer for future tenants; and
• Retain colocation language in lease for future tenants.
• Providing lump sum capital in exchange for rental stream;
• Modifying the easement to appease the City’s attorney;
• Adding language for City to have access to future tenants from colocation language in original lease.
By working with TowerPoint, the City of Longwood was able to monetize its cell site asset for a lump-sum payment that replenished its reserve funds to fund numerous projects and services. Additionally, the firm was able to provide the cell site owner a customized solution that benefited the City for future tenants.