SITUATION

All across the US, smaller municipalities struggle financially to meet their citizens’ growing demands and needs without increasing taxes or incurring additional debt. Town managers must stretch every dollar and utilize all available resources to compensate for shrinking state and federal subsidies.

The changing dynamics of the cellular world today can leave municipal cell site owners challenged to maximize their lease values and potential. Between the highly technical nature of cellular rental agreements, merger effects, continual equipment upgrades/additions, and the lack of transparency, leaseholders struggle to ensure contracts are current, honored, and all due payments are received. Plus, many towns lack sufficient staff to provide adequate site management. Recently a smaller, mid-Atlantic municipality faced this challenge before they began working with Crescendo.

PARTNERING FOR SUCCESS

Crescendo’s team of professionals provided the cellular, financial and legal expertise the town’s staff needed to address their situation and realize the potential of their cellular holdings. The lease optimization process included:

• Audit of existing agreements to decipher the status of current rents due and past underpayments
• Provide expertise needed to support the successful recoupment of unpaid and overdue back rent
• Development of a strategy and structure that would address the current and ongoing financial needs of the town while optimizing the earnings potential of their cellular assets
• An agreement with Crescendo to provide an immediate influx of capital via monetization of cash flows along with a set schedule of future cash payments over multiple years
• Eliminated any future risk of lease cancellations or rent reductions

A CUSTOMIZED SOLUTION FOR TODAY AND THE FUTURE

After identifying and documenting the increased value of their current leases, Crescendo structured an agreement to maximize their improved lease values by providing the town with a large, lump-sum cash payment now along with a structured payment schedule covering the next ten years. This agreement provides the capital to address current needs while ensuring future rent income.

THE RESULTS

With Crescendo’s support, the municipality successfully recouped many thousands of dollars in unrealized income from its existing cellular leases. This windfall, plus the large cash payout they received, leaves the town in a stronger position to meet their short-term financial needs. The structured schedule of future payments enables them to confidently plan for the future. Plus, they no longer have to deal with site management challenges and have eliminated the risk of lease cancellations or reductions.