Cell Tower Leases

							                                                    Cell Tower Leases
If your church is considering entering into a cell tower lease agreement with a telephone company or it’s agent, please read and
discuss the following with your Church Council. Cell Tower leases are becoming common, and careful attention to the issues herein will
help to streamline your process. Don’t be in a hurry to sign a long-term agreement such as this, and please contact your ARC with
questions and concerns.

Approval Issues
    Lease agreement will need to be voted on by the Church Council and the Congregation before submission to the ARC.
    Lease will need to be reviewed and cleared through the ARC Office, at which point additional negotiations may be required.
    Lease and ALL associated documents will need to be approved and signed by the ICFG Board.

Insurance/Liability Issues
     Cell company will be required to carry $2 Million Commercial Liability Insurance.
     Lease must contain the following Indemnification Clause: “Said telephone company shall indemnify, insure and save harmless
        the owner and tenants of said premises from all liability, loss or damage claims for injury to persons and/or property caused by
        the acts or failure to act of Company, its employees or agents.”
     Self-insurance by the telephone company is not acceptable.

Encumbrance Issues
    Church needs to consider the long term impact of a probable 25-30 year lease on the development or salability of the
      property.
    Church needs to know where all utilities related to the cell tower site will run and plan for the potential impact of installation,
      maintenance and use restrictions associated with those utilities.
    “Additional Premises”: Automatic agreement to lease additional premises as needed by the telephone company is sometimes
      stipulated but is NOT acceptable and must be re-negotiated.
    “Property Restrictions”: Lease terms restricting Foursquare’s right to sell or zone the property are NOT acceptable
      encumbrances.
    “Assignment or Sublease”: Right of the telephone company to assign or sublease the site without ICFG’s consent is NOT
      acceptable and must be subject to Landlord’s (ICFG) acceptance.
    Any lease agreement should not stipulate exclusive site use, thereby precluding the possibility of additional future leases.

Value Received
     Consider that most agreements pay $1,000 per month to the church.
     Consider that the agreement may give EXCLUSIVE right of use for a portion of the property to the telephone company.
     Consider that a 25-30 year lease is far longer that the average Senior Pastor’s tenure.
     Consider that security of the site (fence) and landscaping should be the obligation of the telephone company.
     Consider the aesthetic impact the installation will have on the church; chose the location carefully!
     Consider contacting a second telephone company to see if they might be interested as well.

Checklist:
    Congregational Vote. With options, the lease term can tie up the property beyond the current generation (often 25-30 years).
        Therefore, in addition to council approval, these leases require a congregational vote.
    No Self Insurance. We require liability insurance at a minimum consistent with our standard leases and do not recommend
        self-insurance. In addition to the impracticality of policing Tenant’s net worth, it could go bankrupt.
    Location & Safety. As to the site location and any utilities servicing that location, the Church should consider its current needs
        and look ahead to potential future development as well, including the potential for sale. In this regard, the tower location
        should be limited to an area that is practical, safe and unobtrusive. Above ground utilities are not recommended and even
        underground utilities should be in the least intrusive area available. For example, it is not recommended they be installed
        beneath a parking lot or other area which may later need renovation or excavation.
    Security Fence and Landscaping. The lease should provide (or City ordinances require) Tenant to erect a security fence and
        suitable landscaping around the area.
    Additional Premises. Some agreements include a provision stating Fsq automatically agrees to lease additional premises if
        tenant needs them. This is not recommended.
    Restrictions on sale. Terms restricting Fsq’s right to sell or zone the property are not recommended.
    Assignment-Sublease w/out Landlord Consent. Not recommended—except as to Tenant affiliates or subsidiaries. Any
        asgt/sublease should require L’s written consent.