HomeMy WebLinkAboutItem 06.kDecember 5, 201I Item No.
SECOND AMENDMENT TO SITE LEASE AGREEMENT WITH SPRINT SPECTRUM
REALTY COMPANY, LP FOR THE FAIRFIELD WATER TOWER
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Second Amendment
to the Site Lease Agreement with Sprint Spectrum Realty Company, LP for the Fairfield Water
Tower.
Approval of the motion will result in a renewal of the Site Lease Agreement with Sprint
Spectrum Realty Company, LP at the Fairfield Water Tower.
Overview
The City of Lakeville approved a 15 year Antenna Site Lease Agreement with Sprint in 1996 for
the Fairfield Water Tower. Sprint Spectrum Realty Company, LP is requesting renewal of the
site lease agreement. The lease will increase from the current rate of $14,046/yr in 2011 to
$16,260 in 2012 to $18,504 in 2013. The contract renewal also includes language regarding
improvements, background checks and access to the facility.
Primary Issues to Consider
❖ Lease Amount
o $16,260 and $18,504 per year in 2012 and 2013, respectively. Increases by 3.0%
per year in 2014 and thereafter.
Term
o Initial terns is 5 years with the option to extend the Agreement for two consecutive
5 year terms.
Supporting Information
Second Affedment to Site _Lease Agreement
l
x \\
� Fe1kr Finance Director
Financial Impact: $ 16,260 /year Budgeted: N.A. Source: Water Trunk Fund
Related Documents (CIP, ERP, etc.):
Notes:
Sprint/Nextel Site ID: MS03XC173 -C
SECOND AMENDMENT'ro SITE LEASE AGREEMENT
THIS SECOND AMENDMENT TO SITE LEASE AGREEMENT( "Amendment ") is
made effective as of 201 ( "Effective Date "), by and
between the City of Lakeville, a Minnesota municipal corporation ( "Landlord" or "Owner ") and
Sprint Spectrum Realty Company, L.P., a Delaware limited partnership, successor in interest to
Sprint Spectrum L.P., a Delaware limited partnership, previously referred to as "SSLP"
( "Tenant" or "Sprint ").
1:7T-am 1:Ze 0 a
Pursuant to a Site Lease Agreement dated December 16, 1996, as amended by
Amendment to PCS Site Agreement dated January 22, 2002 (collectively, the "Agreement "),
Landlord leased to Tenant a certain portion of real property located at 20921 Kenrick Court, the
City of Lakeville, County of Dakota, State of Minnesota, as more particularly described in
Exhibits B and C to the Agreement ( "Premises ").
Landlord and Tenant desire to amend the Agreement as set forth herein. Words and
phrases having a defined meaning in the Agreement have the same respective meanings when
used herein unless otherwise expressly stated.
AGREEMENT
The parties agree as follows:
`Perm. Section Three of the Agreement is amended by adding the following:
Notwithstanding anything set forth in Section Three to the contrary, the current term of
the Agreement will expire on December 31, 201 1. Commencing on January I, 2012, the term of
the Agreemcm ( "New Initial Term ") is sixty (60) months. The Agreement will be automatically
renewed for up to two (2) additional terms (each a "Renewal Term ") of sixty (60) months each.
Each Renewal Term will be dectned automatically exercised without any action by either party
unless Tenant gives written notice of its decision not to exercise any option(s) to Landlord before
expiration of the then current term.
2_ Rent. Section Four of the Agreement is amended by lidding the following:
Notwithstanding anything set forth in Section Pour to the contrary, effective January
2012, the Rent shall be paid in an annual installment of Sixteen Thousand Two Hundred Sixty
and No /100 Dollars (S16,260.00), and shall continue during the term (until increased as set forth
herein), partial years to be prorated, in advance.
Commencing on January 1, 2013, Rent shall be paid in equal monthly installments of
One Thousand Five Hundred Forty -Two and No /100 Dollars (51,542.00) and shall continue
during the term (until increased as set forth herein), partial months to be prorated, in advance.
Thereafter, commencing on January 1, 2014, the Rent will be increased annually by three percent
(3 %) of the then current Rent.
Landlord i nitials: _ _ _ 1 Tenant initials:
MD7G.& fo 1 cN C1d M1¢ema (1.,k ou0 1 KI'£I ao to o�lQlw- 1
Sprint/Nextel Site ID: MS03XC173 -C
3. Improvements. Section Six of the Agreement is amended by adding the
following:
Notwithstanding any provision contained in the Agreement to the contrary, Tenant has
the right to modify, supplement, upgrade, replace, remove, refurbish, or relocate the equipment
related to the personal communications services facility, including without limitation the utility
lines, transmission lines, equipment shelter(s), electronic equipment, antennas, coax, and
supporting equipment, within the Premises (including all riser /conduit space and utility /access
easements) only, at any time during the term of the Agreement, provided that Tenant complies
with all applicable laws and regulations, design/architectural guidelines and height restrictions.
Landlord agrees to cooperate with Tenant in all respects in connection with the foregoing.
Tenant may operate the personal communications services facility at any frequency for which it
has all requisite Permits, provided that Tenant must comply with any existing non - interference
provisions set forth in the Agreement. Prior to exercising the foregoing rights, Tenant shall
obtain the prior written consent of Landlord, which consent will not be unreasonably withheld,
conditioned or delayed. In the event Landlord fails to respond in writing within fifteen (15)
business days following landlord's receipt of Tenant's request, Landlord shall be deemed to have
given its consent.
Background checks shall be completed by Landlord on all individuals who request
access to any of the water system facilities, reservoir, wells or other public works facility
located within the Property ("Facilities" or "`Facility'). Background checks performed
internally by the Tenant requesting access for its employees cannot be used in
substitution of Landlord's background check. Landlord reserves the right to refuse
access to any Facility located within or about the Property based on the results of the
background check. Landlord will update the background checks annually. The following
guidelines represent the procedures, duties and responsibilities of Landlord and Tenant
with respect to access to the Property or Premises:
Procedures All individuals must present appropriate state, federal, or company
issued photo identification before access is granted to the Premises. All individuals,
regardless of the status of the background check, will be escorted by Landlord
personnel when working within the Facilities. Individuals with approved
Landlord initials: _ Tenant initials: _ l _
MD7Ci&N tomielw.GiULVemmw [ ut(lid lwnio oil,,toi k lalwiooilvle 2
SpritirNextel Site ID: MS03XC 173-C
background checks will be allowed to work within the Premises unescorted, subject
to escort requirements for work within Facility areas. Individuals without approved
background checks will be escorted while they are working in or around the
Premises. Tenant shall contact the Landlord's Utility Department at 952- 985 -4540
from 7:30 a.m. - 4:00 p.m. central time Monday through Friday or the Landlord's
Police Department at 952- 985 -4800 at all other times to obtain access to the
Premises.
Tenant Charges for Access In the event the Landlord's Operations and
Maintenance Department is required to escort an individual without an approved
background check, the Tenant will be balled by Landlord for costs and expenses
incurred by the Landlord in dispatching employees to the Premises, up to a
maximum of $1,000 per access. In the event the Landlord's personnel is called out
after regular City business hours as set forth above or on City holidays, to provide
access to the Premises, charges for the callout will be billed to the Tenant, up to a
maximum of $_1,000 per access.
4. Notices. Section Twelve of the Agreement is amended by deleting the entire
provision and substituting the following provision in its place:
"All notices, requests, demands or other communications with respect to the Agreement,
whether or not herein expressly provided for, must be in writing and will be deemed to have been
delivered upon receipt or refusal to accept delivery after being either mailed by United States
first -class certified or registered mail, postage prepaid, return receipt requested or deposited with
an overnight courier service for next -day delivery to the parties at the following addresses (the
addresses may be changed by either party by giving written notice).
Landlord: City of Lakeville
20195 Holyoke Avenue West
Lakeville, MN55044
Tenant: Sprint Spectrum Realty Company, L.P.
Sprint/Nextel Property Services
Site ID: MS03XC1 T3 C
Mailstop KSOPHT01 01 -Z2650
6391 Sprint Parkway
Overland Park, KS66251 -2650
with a copy to: Sprint/Nextel Law Department
Attn: Real Estate Attorney
Site ID: MS03XC 173 -C
Mailstop KSOPHTO101 -22020
6391 Sprint Parkway
Overland Park- KS66251- 2020"
Landlord initials: _ _ Tenant initials: „ >>
MD7011k 3
Sprint/Nextel Site ID: MS03XC173 -C
5. Additional Terms and Conditions to this Amendment. Landlord agrees to
promptly execute and deliver to Tenant a recordable Memorandum of Amendment in the form of
Attachment 1. attached.
6. Reaffirmation; Intention to be Bound. Except as provided in this Amendment,
each and every tern, condition and agreement contained in the Agreement will remain in full
force and effect. The parties reaffirm that the representations and warranties made by each of the
parties in the Agreement are true and accurate as of the Effective Date. The parties executing
this Amendment, on behalf of themselves, their assigns and successors, acknowledge and
reaffirm their intention to be bound by the terns and conditions of the Agreement.
SIGNATURE'S APPEAR ON THE F®IllOWING PAGE
Landlord initials: _ Tenant initials: Z=
M 7 Chl I. in mialexLGi[kheomeOUIM.C]" 1-1m m¢rlcn/ l.kh —. m,ubsi 4
Sprint,Nextel Site ID: MS03XC173 -C
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of
the Effective Date.
Landlord:
City of Lakeville, a Minnesota municipal
corporation
(please use blue ink)
Printed Name:
Title: _.
Date:
Tenant:
Sprint Spectrum Realty Company, L.P., a
Delaware limited partnership
By:
Printed Name: Nathan Olson
Title: Authorized Representative
Date: _ s q �_
(please use blue ink)
Printed Name:
Date:
Landlord initials. Tenant initials'
M.oa�axeao�om�o ICh iI.,,'11�.o-iw.cl�h—,o ou„ v. 5
Sprint/Nextel Site ID: MS03XC 173 -C
ATTACHMENT I
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
Sprint/Nextel Property Services
Mailstop KSOPHT0l01 -Z2650
6391 Sprint Parkway
Overland Park- Kansas66251 -2650
above this line for Recorder's use
MEMORANDUM OFSECOND AMENDMENT TO SITE LEASE AGREEMENT
The MEMORANDUM OF SECOND AMENDMENT TO SITE LEASE AGREEMENT
(,"Memorandum"), evidences that an amendment ( "Amendment') was made to Site Lease
Agreement dated December 16, 1996, as amended by Amendment to PCS Site Agreement dated
January 22, 2002 (collectively, the "Agreement "), by and between the City of Lakeville, a
Minnesota municipal corporation ( "Landlord ") and Sprint Spectrum Realty Company, L.P., a
Delaware limited partnership, successor in interest to Sprint Spectrum L.P., a Delaware limited
partnership, previously referred to as "SSI.T" ( "Tenant ").
The terms and conditions of the Agreement and Amendment are incorporated herein by
reference.
The Agreement as amended provides in part that Landlord leased to Tenant a certain site
located at 20921 Kenrick Court, the City of Lakeville, County of Dakota, State of Minnesota,
which is more particularly described on Exhibit A attached and incorporated herein by
reference. The Amendment grants Tenant the option to extend the Agreement for two (2)
additional sixty (60) month terns after the expiration of the new initial sixty (60) month tern
which will commence on January 1, 2012.
All notices to Tenant must be sent via U.S. Postal Service certified mail, return receipt
requested with all postage prepaid to:
Sprint Spectrum Realty Company, I,.P
Sprint /Nextel Property Services
Site ID: MS03XC173 -C
Mailstop KSOPHT01 01 -2265 0
6391 Sprint Parkway
Overland Park, KS66251 -2650
with a mandatory copy to.
Sprint /Nextel Law Department
Attn: Real Estate Attorney
Site m: MS03XC173 -C
Madstop KSOPHT0101 -Z2020
6391 Sprint Parkway
Overland Park. KS66251 -2020
SIGNATURES APPEAR ON THE FOLLOWING PAGE
Landlord initials: _ Tenant initials: .
MD70ie hm;lu GIa1.". I'AQ'ki m-N meta 4 /Qid haeluuilvtunl. 6
Sprint/Nextel Site ID: MS03XC173 -C
IN WITNESS WHEREOF, the parties have executed this Memorandum as of the day and
year indicated below.
Landlord:
City of Lakeville, a Minnesota municipal
corporation
Tenant:
Sprint Spectrum Realty Company, L.P., a
Delaware limited partnership
By: (NOT FOR EX ECUTION� By: _ (NOT FOR EXECUTION) _
Printed Name: Printed Name: Nathan Olson
Title:
By: (NOT FOR EXECUTION}
Printed Name:
Title:
Title: Authorized Representative
Landlord initials: Tenant initials:
Nm]Q J: LUe6 1 Gitla h¢cpa Y,(ldl rwe m�a Ntt/(]Id:Imclt alateLL
Sprint/Nextel Site ID: MS03XC173 -C
EXHIBIT A
TO MEMORANDUM OF SECOND AMENDMENT TO SITE LEASE AGREEMENT
Description of Property
A portion of certain real property located at 20921 Kenrick Court, the City of Lakeville,
County of Dakota, State of Minnesota, described as follows:
y
Landlord initials: Tenant initials:
rvmva�a�nQ�m cr xiwcmu � i.n'�aw�w nna i�Kxi � -�, �,ia��� A
SprintlNextel Site ID: MS03XC 173 -('
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
Sprint/Nextel Property Services
Mailstop KSOPHT0101 -Z2650
6391 Sprint Parkway
Overland Park, Kansas 66251 -2650
above this line for Recorder's use
MEMORANDUM OF SECOND AMENDMENT TO SITE LEASE AGREEMENT
The MEMORANDUM OF SECOND AMENDMENT TO SITE LEASE AGREEMENT
('Memorandum "), evidences that an amendment (`Amendment ") was made to Site Lease
Agreement dated December 16. 1996, as amended by Amendment to PCS Site Agreement dated
January 22, 2002 (collectively, the "Agreement "', by and between the City of Lakeville, a
Minnesota municipal corporation ( "Landlord ") and Sprint Spectrum Realty Company, L.P., a
Delaware limited partnership, successor in interest to Sprint Spectrum L.P., a Delaware limited
partnership, previously referred to as "SSLP" ( "Tenant ").
The terms and conditions of the Agreement and Amendment are incorporated herein by
reference.
The Agreement as amended provides in part that Landlord leased to Tenant a certain site
located at 20921 Kenrick Court, the City of Lakeville, County of Dakota, State of Minnesota,
which is more particularly described on Exhibit A attached and incorporated herein by
reference. The Amendment grants Tenant the option to extend the Agreement for two (2)
additional sixty (60) month terms after the expiration of the new initial sixty (60) month term
which will commence on January 1, 2012.
All notices to Tenant must be sent via U.S. Postal Service certified mail, return receipt
requested with all postage prepaid to:
Sprint Spectrum Realty Company, L.P
Sprint /Nextel Property Services
Site ID: MS03XC173 -C
Mailstop KSOPHT0101 -22650
6391 Sprint Parkway
Overland Park, KS 66251 -2650
with a mandatory copy to:
Sprint /Nextel Law Department
Attn: Real Estate Attorney
Snell): MS03XC173 -C
Mailstop KSOPHT01 01 -2202 0
6391 Sprint Parkway
Overland Park, KS 66251 -2020
SIGNATURES APPEAR ON THE FOLLOWING: PAGE
Landlord initials: Tenant initials. w." °•
MWCI.WlP W ei "rya. -, v .cr�e�em avau via�cxearm oi�b. I
Sprint/Nextel Site ID: MS03XC173 -C
IN WITNESS WHEREOF, the parties have executed this Amended Memorandum as of
the day and year indicated below.
Landlord:
City of Lakeville, a Minnesota municipal
corporation
By:
Printed Name:
Title:
By:
Printed Name:
Title:
STATE OF _ )
)ss.
COUNTY OF _ )
Tenant:
Sprint Spectrum Realty Company, L.P., a
Delaware limited pa rtnership
p ,P
By:
Printed Name: Nathan Olson
Title: Authorized Representative
Date: i b-!
T he foregoing instrument was (choose once) [ attested or acknowledged before me
this day of_ . 201 , by , as
of City of Lakeville, a Minnesota municipal
corporation, on behalf of the corporation.
In witness whereof I hereunto set my hand and official seal.
[NOTARY PUBLIC
STATE OF )
)ss.
COUNTY OF )
The foregoing instrument was (choose one) Fl attested or ❑acknowledged before me
this day of .201 by Z ; as
of City of Lakeville, a Minnesota municipal
corporation, on behalf of the corporation.
In witness whereof I hereunto set my hand and official seal.
NOTARY PUBLIC
Landlord initials: _ Tenant initials: t^v
MO9Oid 110e Cl�kM1Ve 2
SprintlNextel Site ID: MS03X('l73 -C
STATE OF KANSAS )
) ss.
COUNTY OF JOHNSON )
Acknowledgment by Corporation
Pursuant to Uniform Acknowledgment Act
The foregoing instrument was acknowledged before me this
day of
li1Vp, 201 _L, by Nathan Olson behalf of Sprint Spectrum Realty Company, L.P., a
elaware limited partnership.
In witness whereof I hereunto set my hand and official seal.
n ,
4-
WALE b MaURC
!otery f ubnc St:Se of h , <p
MY anI mrr. nt BpuF
Landlord initials: Tenant initial~: r` -'
MMINkh -10 III., 0<kb -11,11 ChdI -,Io J(.4hIl. 111 Wk 3
Sprint/Nextet Site ID: MS03XC17.i -C
EXHIBIT A
TO MEMORANDUM OF SECOND AMENDMENT TO SITE LEASE AGREEMENT
Description of Propertv
A portion of certain real property located at 20921 Kenrick Court, the City of Lakeville,
County of Dakota, State of Minnesota, described as follows:
Landlord initials: _ _ Tenant initials:
W71 .1k 0&1 -1.0 G kLaemai ICkkNl 1,, 4