Generating Revenue for Municipalities – Cash Today With Future Upside
SITUATION
A small municipality was seeking to solve budget shortfalls through new sources of revenue to help cover growing infrastructure needs and other municipal expenses. The town did not want to raise property taxes, sell real estate or incur additional debt. Crescendo approached the Town Board with the idea of using its cell tower holdings as a source of new found revenue in a transaction designed to meet the Town’s needs and concerns to generate revenue for the municipality.
OUR LEASE OPTIMIZATION PROCESS
Working with the town staff, Crescendo professionals developed a strategy, structure and solution that would provide the immediate cash needed to meet the current budget shortfall while still enabling the Town to partner with Crescendo in future cellular revenues. Crescendo laid out a detailed proposal and forecast that enabled the Town to evaluate their financial alternatives. The Town concluded that the Crescendo plan provided them optimal value in the near term combined with the opportunity to leverage Crescendo’s telecom expertise to realize and partner in future revenue opportunities.
THE SOLUTION
This method of generating revenue for municipalities allowed Crescendo to provide the town leaders with an agreement that would maximize their cell site value and provide them with a significant, lump-sum cash payment to meet their immediate revenue needs and an agreement that would allow the town’s participation in future revenue streams created by the addition of additional leases and lease renewals.
THE RESULTS
The lease capitalization provided the immediate influx of capital that the Town desired. Crescendo was able to analyze and evaluate proposed tenant upgrade requests that resulted in the negotiation of lease amendments and new tenant leases that significantly improving the monthly cash flow from the site. Crescendo also improved the terms of the lease agreements proving improved assurance of the viability of future cash flows and the protection of the underlying real estate.
If you are interested in this learning more about maximizing the value of cell tower leases contact one of Crescendo’s cell tower lease experts at 203.972.3200 or email us.