CELL TOWER DEVELOPMENT IN NEW CASTLE COUNTY

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1 CELL TOWER DEVELOPMENT IN NEW CASTLE COUNTY

2 In the current economic environment, governments are looking for additional revenue streams and communication towers create opportunities to do just that. Recently, private landowners have realized the significant benefits of leasing and revenue-sharing by creating a partnership with wireless cellular carriers.

3 Research has shown the potential expense of constructing a wireless communication tower could cost as much as $250,000. Governments, in most cases, cannot financially shoulder the monies necessary to construct and maintain a communication facility to meet the continuing standards and needs of the wireless carrier.

4 Cell phone usage and network connectivity demands continue to grow at an enormous pace. The need for prime ideal properties to eliminate connection voids or dead-space, is at a premium. Government-owned properties have become more attractive to wireless communication providers.

5 By partnering with local governments, cell tower development companies can continue to improve communication service, but more importantly New Castle County could receive revenues from ground leases and additional revenue sharing that will create sustained revenue with very little to no County resources being used.

6 Potential Revenues The amount of rent to be paid on a lease can vary greatly from site to site depending on the number of vendors on each tower. The monthly lease payments can be as much as $2,000 with periodic adjustments to be negotiated within the lease agreement.

7 NCC can maximize rent revenue by negotiating clauses that provide for additional rent from "co-vendors. Co-Vendors refers to situations in which multiple vendors occupy a single tower (6 is preferred for conventional, less intrusive monopole). Governments often favor co-vendors as a means of limiting the number of towers located in a given area, and, in some cases, have adopted ordinances that permit taller towers to encourage multiple vendors.

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9 EXAMPLE 1: REVENUE ½ CAPACITY Tower #1 Monthly Rent NCC Revenue Share 40% Co-Vendor #1 $2,000 $800 Co-Vendor #2 $2,000 $800 Co-Vendor #3 $2,000 $800 Total Monthly Revenue to NCC (1 st Year) $2,400 Total Annual Revenue to NCC (1 st Year) $28,800

10 EXAMPLE 2: REVENUE FULL CAPACITY Tower #1 Monthly Rent NCC Revenue Share 40% Co-Vendor #1 $2,000 $800 Co-Vendor #2 $2,000 $800 Co-Vendor #3 $2,000 $800 Co-Vendors #4-6 $6,000 $2,400 Total Monthly Revenue to NCC (1 st Year) - $4,800 Total Annual Revenue to NCC (1 st Year) - $57,600/Tower 4 full capacity = $230,400/year

11 Locations A preliminary review of properties that would be considered preferred locations has been conducted. We were able to identify six (6) potential properties, owned by New Castle County, that would be considered desirable by the cell tower company, yet profitable for New Castle County.

12 How/Why were these locations selected.? Through a collection of inquiries from cell tower providers, identified as desirable locations Remote areas Some are on existing County pump station locations Minimal Land Use limitations identified as good candidates UDC considerations

13 SECTION COMMERCIAL COMMUNICATIONS TOWERS/ANTENNA New freestanding tower/monopole. Any new freestanding tower/monopole in any residential district requires a minimum lot size of one (1) acre and a special use permit. In nonresidential districts, no minimum lot size is required, however, any new freestanding tower/monopole proposed to be erected within five hundred (500) feet of any residentially zoned lot, improved or which can be improved with a residential dwelling unit, shall be permitted only if a special use permit is obtained.

14 1. Submission requirements. All applicants for a special use permit or for Department certification shall submit a site plan and appropriate written documentation demonstrating compliance with the applicable conditions listed in this Section. Any application for a new tower/monopole shall include documentation substantiating the need for such tower at the proposed location and shall include an area map showing the location of all known commercial communication towers/antenna within a one (1) mile radius of the proposed facility.

15 Documentation. Documentation acceptable to the Department for a new tower or monopole must show that no existing building, site or structure, including other towers/monopoles within a one (1) mile radius of the proposed new location are available for co-location. The documentation shall include one (1) or more of the following: Evidence that no existing facilities are located within the area targeted to be served and which meet the applicant's engineering requirement. Evidence that existing facilities do not have sufficient height or cannot be increased to a height at a reasonable cost to meet the applicant's engineering requirements.

16 All locations have been identified by address and council district Old County Rd. District Wiggins Mill District 6 87 Read s Way District 7 Shallcross Lake Rd. District Hyetts Corner Rd District Grantham Lane District 12

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23 Cell Tower We re not breaking new ground - Success Stories Upper Pottsgrove Township, Pa. City of Allentown, Pa. North Hampton County, Pa. Middletown Township Marple Township County of Lehigh

24 Cell Tower Path Forward We will begin working with Purchasing to draft a solid RFP. A review and evaluation of all RFP s will be conducted by Special Services and Purchasing. Successful proposals will be sent to the General Manager of Special Service for his recommendation. Submit recommended proposals to the Executive s Office for review and recommendation.

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