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1 <br />Todd Blomstrom <br />From:Gedi Stasiunas <GStasiunas@md7.com> <br />Sent:Wednesday, November 11, 2020 4:50 PM <br />To:Todd Blomstrom <br />Subject:RE: AT&T Cellular Site Lease Extension - 1221 Cummings Park Drive, Arden Hills, MN <br />Attachments:168765 - ATT TOSS Term Sheet - Lease Extension - (Critical Review) - Revised on <br />11.11.2020.pdf <br />Importance:High <br />Caution: This email originated outside our organization; please use caution. <br /> <br />Good afternoon Todd, <br /> <br />Thank you for your email. However, one of the reasons for the new rental terms is because the rate currently being paid <br />by AT&T is significantly above market and any future terms will have to be closer to market rate, so that AT&T is able to <br />continue this relationship for a longer-term. The market rate is based on the rents being paid by AT&T for their other <br />sites in the area of like equipment and space (square footage of the leased premises). Additionally, the rent is what <br />compensates the landlord for AT&T’s tenancy. The escalator is only supposed to keep the rent in sync with the changing <br />value of the dollar. The average annual market rates/CPI increase for the last eleven years is 1.63%, in certain years the <br />CPI increase was in the negatives. <br /> <br />Below is a rental rate comparison or “Comps” for the AT&T cellular sites that are similar to your site in the area. Your <br />site location is the red star in the middle of the map below. The blue dots are the other AT&T cellular sites in the area: <br /> <br /> Comp #1 – Noel Drive - $2,696.59 per month <br /> Comp #2 – 53rd Avenue Northeast - $2,389.51 per month <br /> Comp #3 – Wayzata Street - $2,413.83 per month <br /> Comp #4 – Pierce Butler Route - $2,459.02 per month <br /> Comp #5 – 2nd Street Northeast - $2,561.65 per month <br /> <br /> <br />