Cellular Antennas on Special District Property: The Opportunity and the Risk
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Transcript of Cellular Antennas on Special District Property: The Opportunity and the Risk
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Telecommunications Law
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Telecommunications Law
Cellular Antennas onSpecial District Property:
The Opportunity and the Risk
Gail A. KarishMatthew K. Schettenhelm
Best Best & Krieger LLP
September 17, 2013
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Telecommunications Law
Do you have any obligation to licenseyour property to cell-phone companies?
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Telecommunications Law
No.
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Telecommunications Law
(Or, you shouldn’t.*)
*FCC rulemaking?
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Telecommunications Law
Do you “regulate” cell towerplacements?
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Telecommunications Law
No.
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Telecommunications Law
You are a property owner.
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Telecommunications Law
It is the company’s obligation to ensurethat it has all regulatory approvals.
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Telecommunications Law
This talk will have two parts.
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Telecommunications Law
(1) regulatory framework
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Telecommunications Law
(2) how you protect yourself as aproperty owner
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Telecommunications Law
What regulations apply here?
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Telecommunications Law
Typically, local zoning approval
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Telecommunications Law
(May be easier to get zoning approvalon special-district property than
elsewhere)
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Telecommunications Law
47 U.S.C. § 332(c)(7)
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Telecommunications Law
Generally preserves local zoningauthority, subject to five limitations
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Telecommunications Law
1. A State or local government may not“prohibit” the provision of service.
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Telecommunications Law
2. It may not unreasonably discriminateamong providers.
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Telecommunications Law
3. Any decision to deny must be inwriting and supported by “substantial
evidence.”
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Telecommunications Law
4. A local government must act within a“reasonable period of time” in light of
the nature of the application.
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Telecommunications Law
The FCC reasonably imposed90 and 150-day “shot-clocks”
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Telecommunications Law
The Supreme Court upheld the FCC
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Telecommunications Law
City of Arlington v. FCC,No. 11-1545
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Telecommunications Law
5. The local government must notregulate based on the effects of
radiofrequency emissions
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Telecommunications Law
47 U.S.C. § 1455
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Telecommunications Law
A State or local government “may notdeny, and shall approve, any eligible
facilities request” for a modification ofan existing wireless tower or basestation that does not substantially
change the physically dimensions ofsuch tower or base station.
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Telecommunications Law
“Eligible facilities request” is anyrequest to modify an existing tower or
base station that involves:“(A) collocation of new transmission
equipment; (B) removal of transmissionequipment; or (C) replacement of
transmission equipment.”
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Telecommunications Law
Congress left all the other key termsundefined
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Telecommunications Law
&
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Telecommunications Law
Didn’t clarify if it intended to reachproprietary, or only regulatory, action
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Telecommunications Law
In January, FCC issued non-binding“guidance”
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Telecommunications Law
• Defines “substantially change” throughcriteria developed in a different context(historic preservation).
• no “substantial change” if an additionextends a facility less than 20 feet in anydirection.
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Telecommunications Law
Defines “substantially change” through criteriadeveloped in a different context (historicpreservation).• For example, no “substantial change” if an addition
extends a facility less than 20 feet in any direction.
Offers broad definition of “base station” thatcould make statute apply to many facilities.
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Telecommunications Law
Historic Site – Post Guidance?Illustration showing potential impact of co-location of an additional approximately 20’-high pole mounted antenna array.
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Telecommunications Law
Stealth Site –Now
100’ monopole disguised as a flagpole constructed toconceal six panel antennas within its exterior. Locatedon Brightseat Road alongside I-95 in Prince George’sCounty, Maryland.
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Telecommunications Law
StealthSite – PostGuidance?
Illustration shows the potential impact of anapproximately 20’- high extension to support a co-location of antennas in a typical triangular platformarray (partially shown at top of frame) and smaller co-location in a flush-mount attachmentconfiguration atop the existing monopole.
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Telecommunications Law
Rooftop Stealth Site – NowTwo-story office building located on Layhill Road at Bonifant Road in Montgomery County with antennas fromthree carriers permitted by Special Exception and either concealed within the faux screening atop the penthouseon the roof, or painted to match the exterior of the screening or brick walls.
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Telecommunications Law
Rooftop Stealth Site – Post Guidance?Illustration of a tower-like structure constructed to support co-location antennas approximately 20’ above existingantennas.
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Telecommunications Law
We expect the FCC to launch arulemaking, perhaps within the month
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Telecommunications Law
Educating the FCC could be important
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Telecommunications Law
Part II:How should you structure the deal?
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Telecommunications Law
10 points1. Control the drafting process2. Establish the structure (lease/license)3. Define what you are granting4. Establish the term5. Set the rent6. Address subletting and assignment7. Forbid interference8. Clarify removal responsibilities9. Address termination10.Include standard terms
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Telecommunications Law
(1) Control the drafting process
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Telecommunications Law
Company’s form agreements likely willbe highly slanted in their favor
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Telecommunications Law
Consider developing your own
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Telecommunications Law
(2) What are you granting the company?
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Telecommunications Law
Usually ok to structureas a license or a lease
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Telecommunications Law
(3) What access are you granting?
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Telecommunications Law
Define specifically what facilities maybe placed, and where
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Telecommunications Law
Do not freely allow “improvements”:require specific plans, subject to your
approval.
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Telecommunications Law
Avoid: “approval will not beunreasonably withheld, delayed, or
conditioned”
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Telecommunications Law
If you allow replacement of existingfacilities, clarify that new equipment
cannot differ in size, impact, aesthetics,etc.
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Telecommunications Law
Address how the company may accessits facilities – and when it will do so . . .
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Telecommunications Law
May the provider use common areas?
Must it obtain supervised access?
Must it provide advanced notice?
May it use your access roads or obtainits own?
Are there other security risks that needto be addressed?
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Telecommunications Law
Address how the provider will obtainand use electricity at the site
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Telecommunications Law
If you have aesthetic concerns,address them directly
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Telecommunications Law
(4) What is the term?
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Telecommunications Law
Typically structured as consecutiveseries of 5-year terms,
spanning 20 or 30 years total
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Telecommunications Law
Avoid “options to lease” particular sites,which may prevent you from recovering
full fees for a particular location
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Telecommunications Law
Avoid long delivery or constructionperiods pre-payment; begin payments
immediately
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Telecommunications Law
If provider requests a “due diligence”period, don’t give this time away for
free – and ensure that providerindemnifies you.
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Telecommunications Law
(5) What should you charge in rent?
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Telecommunications Law
Two elements:
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Telecommunications Law
(1) Base rent
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Telecommunications Law
(2) Collocation fees
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Telecommunications Law
Base rent for tower typically between$2,000 - $5,000/month
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Telecommunications Law
Companies often offer low annualescalators
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Telecommunications Law
Can collect collocation fees from initiallicensee or directly from later
subtenants
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Telecommunications Law
Address late fees (interest)and hold-over fees
(100%-200% of then-current rent)
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Telecommunications Law
(6) Subletting and Assignment
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Telecommunications Law
Do not permit subletting/collocationwithout your permission
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Telecommunications Law
• Have licensee waive rights under CivilCode §§ 1995.260, 1995.270
• 47 U.S.C. § 1455 should not affectcontractual restrictions*
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Telecommunications Law
(7) Interference
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Telecommunications Law
Ensure that tenant cannot interfere withyour operations – or those of any
existing tenants.
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Telecommunications Law
Burden should be on newcomers
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Telecommunications Law
Be sure that it is not on you
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Telecommunications Law
(8) Removal
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Telecommunications Law
May depend on type of facility
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Telecommunications Law
In some cases, you might assumeownership.
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Telecommunications Law
In others, licensee shouldbear the duty to remove, at its cost.
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Telecommunications Law
(9) Termination
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Telecommunications Law
Establish events of default justifyingtermination:
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Telecommunications Law
Non-payment
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Telecommunications Law
Habitual late payment
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Telecommunications Law
Violation of any term, if not cured
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Telecommunications Law
Bankruptcy
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Telecommunications Law
Carefully define when the provider canterminate
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Telecommunications Law
Either prohibit volitional terminations orrequirement payment
(e.g. rent for remainder of term or 12-24 months of rent)
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Telecommunications Law
(10) Standard terms
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Telecommunications Law
Insurance: check with risk-assessmentTypical: general liability, auto liability,employer’s liability, all-risk property,
and workers’ compensation
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Telecommunications Law
Hazardous substances:strictly prohibit
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Telecommunications Law
Require indemnification
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Telecommunications Law
No relocation assistance
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Telecommunications Law
What to do after you contract?
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Telecommunications Law
Monitor compliance, and . . .
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Telecommunications Law
. . . after you have a great deal . . .
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Telecommunications Law
don’t change it.
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Telecommunications Law
Be wary of offers:• To purchase lease/license rights• To extend agreements• To alter terms
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Telecommunications Law
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Telecommunications Law
Matthew K. [email protected] Best & Krieger LLPWashington, DCPhone: (202) 785-0600
Thank you
Gail A. [email protected] Best & Krieger LLPOntario, CAPhone: (202) 785-0600