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HomeMy WebLinkAbout20100405 - VI-15 MEMO To:Honorable Mayor and City Council From:Tom Montgomery Date:March 31, 2010 Re:Nextel Lease Amendment Enclosed for Council approval is an amendment to the City’s existing wireless antennae lease with Nextel. The lease amendment will allow Nextel to add an additional 52 square feet of ground lease space inside the 4 Street water tower th for an additional cost of $6,600 per year. Background In 2005, Sprint purchased Nextel. Both Sprint and Nextel had antenna leases on the 4 Street water tower. Sprint is just now combining the antenna th and switching systems and has terminated its Sprint lease and modifying its Nextel lease to combine the two systems. Unused antennae are being removed from the water tower, but rather than move the existing Sprint switching equipment into the Nextel ground lease area, Sprint/Nextel would rather amend the existing Nextel lease agreement to lease additional area for the existing Sprint switching equipment. Council Action Requested Council is request to approve the enclosed Nextel lease amendment. Site Number: MN0040 Site Name: HASTINGS 4TH STREET WATERTOWER FIRST AMENDMENT TO SITE LEASE AGREEMENT THIS FIRST AMENDMENT TO SITE LEASE AGREEMENT (“Amendment”), dated as of the latter of the signature dates below, is by and between City of Hastings, a th Minnesota municipal corporation having a mailing address of 101 E. 4 St., Hastings, MN 55033 (hereinafter referred to as “Landlord” or “Lessor”) and NEXTEL WEST CORP, a Delaware corporation, having a mailing address of Sprint Nextel Property Services, 6391 Sprint Parkway Mailstop: KSOPHT0101-Z26506391, Overland Park, KS 66251-2650 (hereinafter referred to as “Tenant” or “Lessee”). WHEREAS, Lessor and Lessee entered into a Site Lease Agreement dated July 28, 1997, whereby Lessor leased to Lessee certain Leased Premises, therein described, th that are a portion of the Property located at 1800 W. 4 St., Hastings, MN 55033 ("Agreement"); and WHEREAS, Lessor and Lessee desire to amend the Leased Premises as described in the Agreement; and WHEREAS, Lessor and Lessee desire to amend the rent payable to Lessor under the Agreement; and WHEREAS, Lessor and Lessee, in their mutual interest, wish to amend the Agreement as set forth below accordingly. NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee agree as follows: Leased Premises. 1. The Leased Premises as defined in the Agreement shall be amended to add the existing Sprint cabinet lease area (approximately 52 square feet) to the existing Leased Premises for a total of approximately 152 square feet of ground space and to relocate all Lessee antennas to the top of the Structure, all as depicted on the attached Exhibit B-1, which shall, together with all associated coaxial cable runs connecting such antennas to the base station equipment, hereafter be included as a portion of the Leased Premises. Subject to the requirements and restrictions set forth in the Agreement, Lessee shall be allowed to install, maintain and operate up to 12 antennae on the Structure as provided in Section 4c of the Agreement. Rent 2.. Effective April 1, 2010, the rent payable by Lessee to Lessor pursuant to the Agreement shall increase by Six Thousand Six Hundred and 00/100 Dollars ($6,600.00) per year (calculated as $550.00 per month), to be paid annually, over and above the rent amounts otherwise provided for in the Agreement, partial years to be prorated. All future rent adjustments, including annual rent increases, shall continue to be calculated according to the terms of the Agreement . After Hours Access. 3. Any required access to the Leased Premises outside of the normal business hours (M-F, 7am-3pm of Lessor shall be billed to and paid by Lessee ) upon the terms and rates set forth in the Fee Schedule Ordinance for the City of Hastings in effect at the time the request for access is made. For emergency purposes, Lessee can call Lessor at telephone number 651-248-3271 (if outside Lessor’s normal business hours) to access the Structure, seven (7) days a weeks, twenty-four (24) hours a day. Assignment 4.. Section 19 of the Agreement is hereby amended by adding the following: Notwithstanding anything to the contrary contained herein, Tenant has the right, without notice to or consent of Lessor, to sublease (or otherwise transfer or allow the use of) all or any portion of the Site or assign its rights under this Agreement in whole or in part to: (a) any entity controlling, controlled by or under common control with Tenant; (b) any entity acquiring substantially all of the assets of Tenant; or (c) any successor entity in a merger or consolidation involving Tenant. Notices 5. . Tenant’s notice addresses set forth in Section 22 of the Agreement are hereby deleted in their entirety and replaced with the following: If to Tenant: Sprint Nextel Property Services Mailstop: KSOPHT0101-Z2650 6391 Sprint Parkway Overland Park, KS 66251-2650 With a mandatory copy to: Sprint Nextel Law Department Mailstop: KSOPHT0101-Z2020 6391 Sprint Parkway Overland Park, KS 66251-Z2020 Attn: Real Estate Attorney Exhibit B 6.. To the extent the attached Exhibit B-1 is inconsistent with Exhibit B attached to the Agreement, Exhibit B-1 attached hereto shall supersede Exhibit B attached to the Agreement and shall control as to the locations of antennae and other equipment installed by Lessor. Other Terms and Conditions Remain. 7. In the event of any inconsistencies between the Agreement and this Amendment, the terms of this Amendment shall control. Except as expressly set forth in this Amendment, the Agreement otherwise is unmodified and remains in full force and effect. Each reference in the Agreement to itself shall be deemed also to refer to this Amendment. Capitalized Terms. 8. All capitalized terms used but not defined herein shall have the same meanings as defined in the Agreement. Counterparts 9.. This Amendment may be executed in duplicate counterparts, each of which will be deemed an original. Authority 10.. The parties hereto represent and warrant that they have the right, power, legal capacity and authority to enter into and perform their respective obligations under this Amendment. IN WITNESS WHEREOF, the parties have caused their properly authorized representatives to execute and seal this Amendment on the dates set forth below. LESSOR CITY OF HASTINGS, A MINNESOTA MUNICIPAL CORPORATION By: Print Name: Paul J. Hicks Its: Mayor Date: By: Print Name: Melanie Mesko-Lee Its: Assistant City Administrator/ City Clerk Date: LESSEE NEXTEL WEST CORP. By: _ Print Name: _________________ _ Its: ____________________________ Date: ,2010 [ACKNOWLEDGMENTS APPEAR ON THE NEXT PAGE] STATE OF MINNESOTA ) )ss COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _______of ___________,2010, by Paul J. Hicks, Mayor and Melanie Mesko Lee, Assistant City Administrator/City Clerk, on behalf of the City of Hastings, a Minnesota municipal corporation. Notary Public NOTARY STAMP OR SEAL (OR OTHER TITLE OR RANK): (SEAL) STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _____ day of _______________________, 2010, by Its: , as Authorized Agent for NEXTEL WEST CORP. a Delaware corporation on behalf of the corporation. _ Notary Public NOTARY STAMP OR SEAL (OR OTHER TITLE OR RANK): Exhibit B-1 See below one page drawing