Agenda - Council Work Session - 11/22/2022

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From: Marvin Robertson To: Brian Hagen Subject: Ramsey Lease w/Verizon - VZW 1 140285 1 36689 I MIN ISOTOPE I Mkt: Minneapolis Date: Friday, October 28, 2022 3:05:30 PM Attachments: image001.png image002.png image003.png MD7Logo RGB 120x42 76c1a38d-1012-4004-9911-d6b32df5c5a2.png Hello Brian, It was good speaking with you. That was a lot of information that I covered on our call. I have listed some of the reasons below why macro sites rent rates are falling across the US. What I have listed is widely available and verifiable data points. Keep in mind that we would like to keep your site in the new blue printed network redesign, which is why Verizon has me reaching out to you. It boils down mostly to supply, demand and lost revenue as cellular rates drops. The biggest threat to macro sites has been 5G small cells rolling out nationwide low to the ground on lamp post and billboards versus macro sites. • Increase supply of other available macro sites due to the decommission sites by T-Mobile - (700 Sprint old sites per month decommissioned) That also eliminates zoning delays as carriers move to Sprint old sites. • Slowing/stalling of the industry for voice and coverage (Demand dropping) • Even voice calls or moving to Wi-Fi or VoIP • Drop in voice lines from $250 per line to $50 per line - carriers revenue drops everyone's drop, else we go out of business as did Sprint. (Big Corporation die too —Just look at the VZ and T stock prices both at decade lows. • Tall macro sites built, high up in the sky for voice and wide coverage, is now supplemented by ground 5G small cells. • New supply of small cell (5G) with 10 x capacity of 1 macro site such as yours. • Small Cell 300 meter apart absorbing needed bandwidth. • The normal maturation cycle of macro cell and their needed location • Satellite partnership and initiative are ahead of schedule — service to launch 2023 to blanket and create redundancy for the network for relocated sites. Verizon, really needs to get something done on the site in term of know if it is going to in the portfolio are not. Below I have an offer that I Verizon will accept and that you can present to council. Let me know if you have any questions. • Rents : $1,950.00 • Esc 10% / Term (matches historical norms) • 5-year term, with (4) additional 5-year terms to 12-31-2047 (secures this site in the new blue print redesign) • 5-year Rent Guarantee against decommission (valued at $117,000.00) - You will not be contacted for termination for at least 5 years because income would be protected through 12/31/2027 Brian, let me know if you agree to this offer. I am positive the site gets decline by Verizon if we can get it done by the end of November. Hopefully we can get it done sooner.