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Wednesday, April 9
,
2008
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The Zone

Cellular tower project is a go

  • Alltel Communications will move forward with plans to erect a cellular tower in West Dougherty County.

ALBANY — The Albany City Commission staved off the threat of a lawsuit by Alltel Communications LLC during a special called meeting Tuesday morning when commissioners adopted a resolution authorizing a lease agreement that will allow the telecommunications giant to erect a cellular tower on city-owned property off Marlboro Avenue.

The commission also voted to authorize a waiver concerning its security deed on property owned by MacGregor Golf Inc. that will allow the company to move forward with a new financial agreement it has reached with Wachovia Bank.

“If you OK this resolution, the lawsuit that was scheduled to begin April 21 will be over,” City Attorney Nathan Davis told commissioners before the Alltel vote. “This will quiet all the noise.”

Commissioners voted 6-0 to pass the resolution with no discussion. Mayor Willie Adams abstained.

Alltel Communications had filed suit in U.S. District Court claiming the city had violated the Telecommunications Act of 1996 when it denied a rezoning application in December that would have allowed the company to erect a tower in the Doublegate neighborhood. Subsequent attempts to find an alternate location suitable to the communications company and the city were unsuccessful.

Andrew Rotenstreich, an attorney with the Birmingham firm Haskell, Slaughter, Young & Rediker, represented Alltel in the legal action. An official with the firm said Tuesday that Rotenstreich would not be back in his office until later in the week.

The lease agreement OK’d by the city gives Alltel an easement allowing unincumbered ingress and egress to the property 24 hours a day and allows for the installation and transmission of utilities from the site. The city will receive a $1,600-per-month payment that includes an annual 3 percent increase for as long as the company leases the property.

The commission was on the verge of tabling a vote on the MacGregor waiver before Davis cleared up concerns about financial information that had initially been expressed by Albany Community & Economic Development Director Jennifer Clark.

“Although our risk position will not change in this matter, I’d like to see (MacGregor’s) current loan agreement with Wachovia,” Clark said. “I think for our records, it is important to know their financial standing.”

But Commissioner Bob Langstaff, who is an attorney, pointed out that the commission’s position would not change with or without the financial information.

“If we needed financial information about MacGregor’s agreement with Wachovia, that should have been brought before us before we got here for a special called meeting,” Langstaff said. “I don’t think we should be an obstacle to this deal moving forward.”

Commissioner Jon Howard had asked Davis if an immediate vote was imperative in the case.

“Actually it is,” Davis said. “With interest rates changing constantly, (MacGregor’s agreement) is very time sensitive.”

After Commissioner Tommie Postell had warned fellow board members that they might be “putting the cart before the horse” in taking a vote without the financial information Clark had requested, Commissioner Roger Marietta said, “I think we’re getting into proprietary information with that. I don’t think we should be getting into their financial business.”

Davis said the city, through its Payroll Development Authority, had issued a $500,000 subordinated taxable industrial development revenue bond for the construction of the MacGregor facility at the Pecan Grove Corporate Park off Newton Road. That makes it the second lien-holder on the property. The primary security deed is owned by SunTrust Bank.

“Nothing changes with this agreement,” Davis said. “This just gives Wachovia the right to go onto the property if they need to collect inventory, which (MacGregor) is using to secure the (new) loan.”

Following the brief meeting, most of the commissioners, Adams and Davis joined members of the Water, Gas & Light Commission board at a discussion on a proposed Plant Vogtle expansion project, which was held at the Hilton Garden Inn.

Principles involved in the proposed Vogtle expansion from two nuclear generators to four conducted the meeting, which was not open to the public. Invited attendees, who are a part of the Municipal Electric Authority of Georgia, signed a waiver agreeing not to disclose information discussed and agreed to hold any discussions on the proposal in closed executive session.

“MEAG was smart to buy a 22 percent interest in Plant Vogtle,” Davis said. “Now, it gets 22 percent of anything additional done at the plant. These meetings are an opportunity for the 49 members of MEAG to determine if they want a share of that 22 percent.

“The revenues involve will run in the billions of dollars.”

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