wfn.org | ELCA Congregations Approached for Wireless Antenna Leases

[News News <NEWS@ELCA.ORG>]

ELCA NEWS SERVICE

July 27, 2001

ELCA CONGREGATIONS APPROACHED FOR WIRELESS ANTENNA LEASES
01-205-MM*

     CHICAGO (ELCA) -- With the rise of mobile communication services,
congregations across the country have been approached by wireless
carriers such as Sprint, Motorola, AT&T and Verizon Wireless, with hopes
of installing antennas on the congregation's property.
     More recently, congregations have been approached by companies
leasing bandwidth to wireless carriers on antennas they own and operate.
     The demand for antennas is increasing because of an effort to
create a seamless wireless network across the country by both carriers
and antenna owners.  Church buildings are seen as practical locations
for the technical demands of antennas.
     "Church buildings are natural environments to conceal wireless
antennas," said Scott S. Fintzen, ELCA associate general counsel.
People in many communities are concerned about wireless antennas because
of their appearance.  As a result, wireless carriers and antenna owners
have sought out locations which conceal the antennas from view, such as
flag poles, tall roofs, and church buildings with tall steeples.  "It's
(church building) a functional place, it works well and it's desirable
because the antennas can't be seen," he said.
     "Location is another reason church property is appropriate,"
Fintzen said.  "In particular, congregations in inner cities and rural
areas are most likely to be approached.  In inner cities, the buildings
tend to be on high ground, in well-developed areas.  In rural areas, the
church buildings are sometimes the tallest structure in the area."
     Leases usually range from 10 to 30 years, at as much as $750 to
$4,000 per month.  While this financial gain may seem appealing to
congregations, there are risks and related issues to be considered.
     "The potential loss of real property tax exemption is one of the
top risks congregations  face," Fintzen said.  "Congregations need to be
sure that the lease requires companies to pay all taxes that are due as
a result of the lease or the operation of the antenna, and in particular
real property taxes.  The lease should also require companies to pay any
costs associated with regaining a lost property tax exemption at the end
of the lease term," he said.
     Fintzen said other issues and potential risk areas to be
considered are:
     + Liability
     + Responsibility for compliance with federal, state, and local
laws and regulations
     + Hazardous materials
     + Compensation
     + Insurance
     + Impact of lease on congregational operations
     + Access rights and limitations
     + Antenna appearance
     + Scope of leasehold interest and limits on use of premises
     + Responsibility for installation, maintenance and removal of
antenna
     + Lease duration
     + Long-term limitation on use or sale of property
     Health concerns are sometimes raised as an issue; however, Fintzen
said he is "unaware of any documented health hazards that are directly
correlated with wireless antennas."  Usually wireless leases can be
negotiated so the risks and related issues can be avoided, he said.  In
addition, well-negotiated leases can increase the rental income.  For
example, ELCA experience has been that rent can be increased by as much
as 50 percent from the initial offer, Fintzen said.
     Another concern is a type of "scam" run by certain companies,
Fintzen said.  "Some companies are charging congregations to assess the
congregation's property to see if it would be suitable for a wireless
antenna."  "This doesn't make any sense.  It has been our experience
that when a wireless antenna owner or wireless carrier is interested in
a particular site, they will contact the congregation," he added.
     To avoid scams like this and other areas of concern, congregations
considering wireless antenna leases should seek legal advice.  The ELCA
Office of the Secretary is available to assist ELCA congregations with
resources and legal referrals.  Attorneys already representing
congregations can also contact the ELCA for further information
regarding this matter.
     Fintzen did not know the exact number of congregations with
antenna leases, but he said he "receives one to three calls a month
concerning the issue."  "We want congregations to seek legal help when
they are considering this," Fintzen said.
---
For information concerning wireless antenna leases, contact Scott S.
Fintzen, associate general counsel, in the Office of the Secretary at
800/638-3522 ext. 2101

*Michelle T. Mills is a senior at Bradley University, Peoria, Ill.  This
summer she is an intern with the ELCA News & Information.

For information contact:
John Brooks, Director (773) 380-2958 or NEWS@ELCA.ORG
http://listserv.elca.org/archives/elcanews.html