Ocean Gate Inks Nearly $2 Million Deal to Lease Tower Space to Cell Companies

Ocean Gate received more than $1.9 million dollars upfront for a 50 year lease with Sprint, AT&T, Verizon, and T Mobile to allow the cell phone companies to continue renting space on top of the Borough's water tower, according to Mayor Paul Kennedy. 

The four cell phone companies are among five that had been renting space from the Borough for the past eight years, according to Kennedy, but their leases were up.

"It was kind of a no-brainer, because what were we going to do? Take the chance of them renegotiating and not be happy and leaving, or taking that," said Kennedy.

The cell towers will remain on the water tower and the cell companies will continue paying for any upgrades, according to Kennedy.

Ocean Gate is in the process of hiring a financial adviser to help decide how to invest the money from the deal.

"If we invest the money, we'll make probably in 10-15 years, $7 million dollars on top of that," Kennedy said.

Kennedy noted the Borough signed the contract with Landmark Infrastructure Holding Company, a California-based telemarketing company, which negotiated the deal for the cell companies.

Meanwhile, Ocean Gate recently approved another contract, effective January 1, 2015, to enter into a shared services agreement with Pine Beach to share Ocean Gate Police Chief Reese Fisher. Pine Beach Police Chief John Sgro retired as of December 31, 2014, according to a news release from Kennedy.

The three year contract runs through December 31, 2017. Chief Reese will be paid $145,000 for 2017, $150,000 for 2016 and $155,000 for 2017. All costs for pension contributions, health benefits, vacation, and sick time will be equally split between the two boroughs. Ocean Gate is expected to save between $60,000 and $70,000 pear year.