Marion takes $200K buyout from AT&T

Marion takes $200K buyout from AT&T

City will ‘ gladly take the cash’ in lieu of non- guaranteed monthly payments

news@theeveningtimes.com

Marion has accepted a $200,000 buyout offer from AT& T to allow them to continue renting antenna space on the Patriot water tower for the next 50 years. AT& T currently has a 99 year lease with the city for $1,600 a month. The lease provides for a three percent annual increase and is renewable every five years.

The lease option expires in 2018 and AT& T has been negotiating with the city on a new lease.

AT& T had proposed lowering the rent to $1,200 a month with a two percent annual increase with the same five year renewal option, The company also offered a one time cash buyout of $193,000 for use of the antenna for 99 years, however the city council rejected the proposal.

The council was more receptive to AT& T's counter offer of a $200,000 buyout. Mayor Frank Fogleman said AT& T has agreed to the deal but has up to six months to formally decide.

'They guy I talked to said it is going to happen,' Fogleman said. 'It may happen in three days. It may happen in three months or six months. They have a clause in the contract that gives them the necessary amount of time they need to make it happen.'

The city will receive $1,000 for that six months. The new contract will run through 2056.

Fogleman said the $200,000 buyout is a good deal for the city because AT& T has been looking to get rid of some of its antennas.

They also won't have to worry about re-negotiating with the communications carrier every five years.

'I will gladly take the cash,' Fogleman said.

'Now there will be no more fear of them pulling out.'

By Mark Randall