CTI Towers Presentation

Proposal to Construct Three Wireless
Communication Towers
Presented to the Parks and Recreation Board
September 16, 2014
Proprietary and Confidential
In Today’s World, There is an Insatiable
Appetite for Wireless Connectivity …
 Worldwide mobile data traffic to soar 11-fold by 2018*
 By the end of 2014, mobile-connected devices will exceed the
number of people on earth*
 By the end of 2018, there will be 1.4 mobile devices per
capita*
Wireless Subscriber Connections (millions)
Dec '97
Dec '02
Dec '07
55.3
140.8
255.4
326.4
30.92%
16.28%
5.56%
Annualized Growth Rate
Dec '12
US Wireless Penetration % (inc. US territories)
19.8%
48.0%
83.1%
102.2%
Cell Sites
51,600
139,338
213,219
301,779
34.0%
10.6%
8.3%
 39.4% of U.S. homes relied exclusively on wireless phones in
1H2013 vs. 34% in 2012**
 Over half a billion (526 million) mobile devices and
connections were added in 2013*
 By 2018, mobile-connected tablets will generate nearly
double the traffic generated by the entire global mobile
network in 2013*
Cell Site Annualized Growth Rate
Wireless-Only Households
N/A
N/A
15.8%
38.2%
Annual Voice Minutes of Use
62.9B
619.8B
2.12T
2.3T
Monthly Text Messages
1.2M
1.0B
48.1B
171.3B
Source: CTIA, The Wireless Association
 Mobile network connection speeds will increase two-fold by
2018*
**
 From the National Association of Realtors 2014 Home Buyer
and Seller Generational Trends Report:

61% of all home buyers are from Gen Y (under 33) and Gen X
(34-48).

More than half of Gen Y and Gen X buyers used a mobile
device during their home search. Among those who did, 26%
of Gen Y and 22% of Gen X found the home they ultimately
purchased through a mobile device.
*Cisco Visual Network Index 2/14
**Pew Research Center
Proprietary and Confidential
2
About CTI Towers
•
•
•
•
•
Established in 2011
Spun off from Comcast
Own and manage over 800 towers in 39 states
Third largest private tower owner in the U.S.
Construct and purchase towers outside the Comcast portfolio
– External growth of 12% in 2014 (MA, MI, SC, TN, TX)
• Management team has experience building towers in difficult to zone
areas:
–
–
–
–
Monterey, CA - airport
Coconino National Forest, AZ
Kenedy Ranch, Sarita, TX
States of California, Connecticut, and Vermont
Proprietary and Confidential
3
Uniquely Qualified Management Team
Tony Peduto, Chief Executive Officer: Tony was named CEO of CTI Towers during the formation of the company. Tony was formerly the COO of Optasite where he managed
the company’s operations and tower development in the U.S., Puerto Rico and the U.S. Virgin Islands, prior to the company’s sale to SBA for $430M in 2008. Tony also served
five years as Vice President of the West and Northeast Regions of American Tower. His involvement with other successful telecommunications and cable television enterprises
include ICS Communications, Tele-Communications, Inc. and American Cablesystems.
Andrew Sloey, Chief Financial Officer: Andrew possesses tower industry experience through his previous roles as General Manager – Finance & Admin. of Crown Castle’s
Australian subsidiary, and as CFO of Crown Castle’s U.K. operations. After the sale of Crown’s U.K. operations to National Grid, he moved into the regulated utility company
holding a number of senior finance positions in both the U.K. and U.S. Prior to CTI , he served as Senior Vice President and CFO of National Grid’s U.S. Financial Services
group.
Carrie Larson, General Counsel: Carrie came to CTI Towers after a distinguished career as outside counsel to the wireless industry, representing carriers, tower companies and
DAS providers. Carrie has provided legal counsel in all phases of tower development, including lease negotiations, zoning and regulatory approvals, along with utility and access
easements. Carrie holds an unblemished record of approvals for tower sites in the state of Connecticut. Her legal expertise also extends to other industries such as utilities and
renewable energy.
Jim Eisenstein, Independent Board Member: Jim is a leading figure in the tower sector and brings unrivaled knowledge with an extraordinary career in the wireless tower
industry. Jim was a founder of American Tower, and he currently serves as the Chairman and CEO of Grupo TorreSur, a Latin American focused wireless tower company with
over 6,000 towers. His prior executive roles include Chairman and CEO at Optasite Towers, CEO at Concourse Communications Group LLC, and both COO and CDO roles at
American Tower.
Proprietary and Confidential
4
Proposal Overview
• Aggressive ground rent
– Above-market rent that puts the burden on CTI to lease the towers
for multiple tenants
• Revenue-sharing
– As tower becomes more profitable, Recreation department and/or
Township shares in the increased revenue
• Capital grants
– To allow the Recreation department and/or Township to improve
facilities for the benefit of its citizens
• Lease term
– Ten year initial term, two renewals of ten years each
Proprietary and Confidential
5
Proposal: Ground Rent (per site)
• Initial ground rent
– $3000 per month
– Commences thirty (30) days after final approval
– 3% annual escalator
– Guaranteed for the term
Year
1
2
3
4
5
6
7
8
9
10
10 yr. Total
Annual rent
$36,000
$37,080
$38,192
$39,338
$40,518
$41,734
$42,986
$44,275
$45,604
$46,972
$412,700
Proprietary and Confidential
6
Proposal: Revenue-sharing (per site)
•
•
•
•
•
•
Above market percentage of 25% of revenue
Applies to all tenants after the second tenant
Commences with initial payment of third tenant
Escalates with tenant revenue
Paid monthly as additional rent
Annual accounting statement submitted to Township prior to
March 31 of following year
• Township may audit CTI revenue-sharing once a year
– If CTI is off by 5% or more, CTI pays for Township audit
Proprietary and Confidential
7
Proposal: Capital Grant
• Initial grant to Parks and Recreation Department in the
amount of $150,000
• $50,000 per site, funded within 60 days of tower approval
• Can be used for Parks and Recreation needs, or other
Township use
• Additional grants of $75,000 upon the initial date of each
renewal term
Proprietary and Confidential
8
Support for the Radnor community
• 2014 Sponsorships
– Truck Zoo
– Fall Harvest and Great
Pumpkin Patch Event
– Holiday at the Willows and
Fireworks Finale
• 2013 Sponsorship
– Night at the Ballpark
Proprietary and Confidential
9
Tower Designs
• CTI will work with the Parks and Recreation department
and/or the Township for the optimal tower in each location
• Stealth tower designs could be utilized
• There will not be any guyed towers
• Goal is to minimize the tower view for all residents
• Engineering drawings for each tower and compound will be
presented at each zoning hearing
• NEPA and SHPO compliance is guaranteed
Proprietary and Confidential
10
Ithan Valley Park
Proprietary and Confidential
11
Ithan Valley Park
Proprietary and Confidential
12
Ithan Valley Park
• Engineers
floated a balloon
in June, 2014 to
determine view
of maximum
height of 150’
• View from site
#1 across I-476
Proprietary and Confidential
13
Ithan Valley Park
• Photo
simulation
of stealth
monopine
from site #1
Proprietary and Confidential
14
Ithan Valley Park
• Balloon float
– site # 2 –
in the park
Proprietary and Confidential
15
Ithan Valley Park
• Photo simulation
of monopine
viewed from site
#2
Proprietary and Confidential
16
Willows Mansion
Proprietary and Confidential
17
Willows Mansion
Proprietary and Confidential
18
Willows Mansion
• Balloon float at
150’ from site
site #1
Proprietary and Confidential
19
Willows Mansion
• Photo
simulation
of monopine
viewed from
site #1
Proprietary and Confidential
20
Willows Mansion
• Balloon
viewed
from
site # 2
Proprietary and Confidential
21
Willows Mansion
• Photo
simulation
of
monopine
from site #2
Proprietary and Confidential
22
1238 Eagle Dr. – Possible Tower Location #1
• Flagpole
stealth
design
• Cables run
UG to
existing
building
Proprietary and Confidential
23
1238 Eagle Dr. – Possible Tower Location #2
• Flagpole
stealth
design
• Cables run
UG to
existing
building
Proprietary and Confidential
24
Next Steps
• CTI is prepared to meet with the Recreation Department
and/or Township to negotiate an agreement for the three
tower sites
• Upon agreement with the Recreation Department and/or
Township manager, CTI will be prepared to present to the
Zoning Board and the Board of Commissioners
Proprietary and Confidential
25
CTI-owned tower locations
As of 1/13/14
Proprietary and Confidential
26
Contact
Tony Peduto
Chief Executive Officer
CTI Towers, Inc.
38 Pond St., Suite 305
Franklin, MA 02038
508-440-5780 x201
tpeduto@ctitowers.com
www.ctitowers.com
Proprietary and Confidential
27