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State To Lease Unused Cell Towers To Pay For Bicentennial Projects

By Brandon Smith

Posted September 6, 2016

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Indiana announced a potential 50-year deal Tuesday to lease unused state cell towers and use the money to pay for the Bicentennial projects. The agreement will also help expand broadband access in some rural areas.

The Indiana Finance Authority approved an agreement on a potential 50-year lease – renewable after the first 25 years – for unused cell tower capacity between the state and Ohio-based Agile Networks. The deal is expected to yield the state $260 million over the life of the lease.

Agile will pay $50 million up front and share a percentage of the revenues generated by the towers with the state. Agile founder Kyle Quillen says his company plans to expand broadband coverage into unserved or underserved areas of the state.

"There's a lot of infrastructure assets that have been built for government in general that the private sector doesn't really utilize," Quillen says.

Indiana Office of Management and Budget Director Micah Vincent says Hoosiers shouldn't balk at the length of the lease.

"I wouldn't just look at the term but I'd look at what's on the other side of that transaction, what we're getting for it," Vincent says. "As we look at the revenues and as we look at the broadband access that we'll see increase, I think that far outweighs any concerns about the term."

The final contract must still be negotiated, then approved by the Finance Authority and the State Budget Committee.

The two sides anticipate that final approval within the next two months – and Quillen says he hopes to complete the broadband expansion within a year.

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State To Lease Unused Cell Towers To Pay For Bicentennial Projects

By Brandon Smith

Posted September 6, 2016

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