Non-Exclusive Comcast Agreement Fee
Hello! I have a question about what is an appropriate agreement fee for a utility provider, such as Comcast, to bring their services to a property?
For some background, we own a Class A complex of 36 townhomes in Atlanta, GA, where many of our residents desire Comcast for their internet/tv provider. One of our residents happens to work for Comcast, who initiated the process of setting up service at the property. Before they install their lines, Comcast has submitted a 12-year non-exclusive agreement in which the consideration for granting them an easement on the property is $1.00 (one dollar). To me, this seems very low. Granted, it is a non-exclusive agreement and we are not required to favor Comcast over another internet/tv provider when marketing to residents. However, Comcast stands to benefit greatly from bringing their services to our property and I think we should be fairly compensated.
For the sake of argument, let's say all 36 residents sign up for Comcast. According to CordCutterNews.com, the average Comcast customer pays $158.00 per month plus $54 in fees, for a total of $212.00/month (https://tinyurl.com/ycf7hscl). That's $2,544.00 per townhouse per year or $91,584.00 per year for all 36 townhomes. Over the 12-year term, this would be a total contract amount of $1,099,008.00!
In 2011, we owned/managed 99 units in Marietta, GA, where we signed an exclusive marketing agreement with Comcast for $100.00/unit. Under the previous contract, we were required to only market Comcast to prospective and current residents. Although we are not required to favor Comcast under the current agreement, I would prefer our residents to have Comcast over other providers, such as DirectTV, who use satellite dishes that make the property look unsightly.
With all of this said, what would be a fair/appropriate fee for Comcast to pay in consideration of granting them the right to install their lines on our property? I appreciate any and all feedback. Thank you!