County to lease water tower space to T-Mobile

Published 10:11 am Saturday, May 28, 2016

The Southampton County Board of Supervisors this week approved the leasing of space on the Newsoms water tower to T-Mobile so that it can install an antenna for wireless communications. The agreement provides that T-Mobile will have a 1-year option in which it can install the antenna.

“If they exercise that option, the initial term of the lease would be for five years, and then there would be five automatic renewals of five years each unless they provide us with written notice prior to expiration of the term,” county administrator Mike Johnson said. “We’re really talking about a 30-year lease.”

Assuming T-Mobile opts to renew each five year term, the agreement would transition to a year-to-year lease. The initial rental rate is $1,200 per month ($14,400 annually) with a 10 percent increase at each five-year renewal, followed by a 2 percent annual escalation once the lease transitions to a year-to-year lease.

“This is an opportunity to capitalize on an existing asset, generate cash for our enterprise fund and improve communications in the Newsoms area,” Johnson said.