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HomeMy WebLinkAbout14.b. U.S. West NewVector Lease Renewal . . CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: March 2, 1994 AGENDA ITEM: U S West NewVector Lease Renewal AGENDA SECTION: New Business PREPARED BY: Ron Wasmund AGENDA Interim City Administrator '�� # � 1,�, , ATTACHMENTS: Lease Agreement APPR ED U S West NewVector Communications, Inc., a cellular communication company, teases a tower site from the City of Rosemount. The tower is used to support and direct antennea for cellular phone transmissions. The lease site is located at the corner of Chippendale and County Road 42 adjacent to the City water tower. TMe lease was originally executed in 1984 for a 5 year term. It is structured for renewal on subsequent 5 year terms with the lease price established for each renewal. The lease automatically renews provided a notice of intent to renew is provided and no cause for termination is identified. A notice of intent to renew has been received and I have no cause for termination. The annual rental for this lease term is established by agreement at 54,394. . This will be the third renewal of the lease. No problems have ever been cited. It is my recommendation to renew the lease for another 5 year term. RECOMMENDED ACTION: MOTION TO APPROVE AN AUTOMATIC RENEWAL FOR A 5 YEAR TERM OF THE SPECIFIC SITE IDENTIFfED WITH fVEWVECTOR COMMUNICATIONS. COUNCIL ACTION: 9 , ,��='�` ` �� . SEP 2 0'8•• . �'�'/ - T � �^�:�' _ • . . �.�: .Y�: ��:� . � . � 4 � 311 � MIM BZZ2 �:.��.. �. � . ^ . OPTION � �,`'"��,� . This Agreement, made this � : ��day of � 1984, between CITY OF ROSD�iOUNT 1367 � • � + - 145th ' Street East, Rosemount, Ninnesota 55068 (Optionor-Lessor), hereinafter designated L� NEt,�VECTOR SOR, and COMMUNICATIONS, INC. , P, 0. Box 7329, Eellevue, Washington 98008-1329 (Optionee-Tenant), hereinafter called TENAi,'T. RDCIT,�.LS 1. i.�asor is the o,raer of certaia z�al proPcr't� located Couat�. State of Kivacsots. aad � - . � �� 2• T�naat desirea to obtaia aa optioa to leaac a real Portioa oi asiII property (hereinafter called Pro ert ` P Y). vith a right-of-vay for access thereto, containing approximately 2,60p square feet, more specificall described as; y T�t Part of lot tw�lve (12), Auditor's Subdivision nur�r 27, contair�ed ,c:I W1t� tl�e followir�g desc�iption: • �-c the Southerly 200.00 feet of the Easterly 217.00 feet of the � � Westerly 25p,pp feet af th �y W1/4 S��11/4 Sectian 29, Townshi I15 Range �9" 19; ..�-� ���-�_ p -�Cs �.s —______ �� , ubstantiall sho �d 4� sc.�'ibed Y �as �ropertyt' on Exhibit "A" attached hereto and made a � ✓`-, part hereof. � . � : . A'OW THERE�ORE, in consi.deration of �the sum �of��..Fifteeri �Hundred Doll � � � �� ars «1•�•DO) hereinafter referred to as Option Money, to be paid by Tenant to ihe Lessor. which Tenant will provide upon its execution. of this. Agreement, the Lessor hereby grants to Tenant the right and option to lease said Pro ert including a righty-of_way for access thereto, for the term and in a p y' uith the covenants and conditions set forth in the attached Lease ��ordance Agreement. The Option may be exercised at any time prior to March 1, 1985. � The t i m e d u r ing W hic h the option may be exercised may be further extended..,by..mutual.•� : � ._. ... _. ..._.. .,..,. .. .. .. .. ... . . .. : .., _. .. � `agree�ent in ariting. . _ : - � � � ��.�' � .. � - . . : . " � ' � . ` . �. -1-� � � .. . �. . .�. .1V�Al.�.. fQ;:-::.: � �. � . . � . . :,.�,� � � . �_ � � �MOLLY TAKATA GROVE-097I � . - j � CNICAGO TITiE INSURANCE CU. r�r�`�T`d �y/">111 WEST WASHINGTON STREE . r � CHICAGO, tLLlNOIS 60602 ' Should Tenant fail to exercise this Option or any extension thereof within the time herein limited, all rights and privileges granted hereunder shall be deemed completely surrendered, this Option terminated, and Lessor shall retain all money paid for the Option, and no additional money shall be payable by either party to the other. The Lessor shall permit Tenant, during the Option period, free ingress and egress to the Property to conduct such surveys, structural strength _ analysis, subsurface boring tests and other activities of a similar nature as Tenant may deem necessary, at sole cost of Tenant. The Tenant shall indemnify and hold the Lessor harmless from all damages or injuries which may result from such activity. Lessor also hereby grants to Tenant the right to obtain �etes and bounds legal description and/or a survey of said Property, and said metes and bounds legal description and/or survey shall, if approved by Lessor, then become Exhibit "B" which shall be attaehed hereto and made a part hereof, and shall control in the event of discrepancies between it and Exhibit "A". Cost . of such work shall be borne by Tenant. �� • ' � � � � Notice �of the exercise of the �Option shall �be given � by � Tenant to the Lessor in writing by certified mail, return receipt requested. Notice sha12 be deemed effective on the date � it is received by Lessor: On the date of such notiee the following Agreement shall take effect. CITY OF ROSF�IOUNT � ^ , By �`-�..L!��..� � ��� Its Aiayor � . ' _. �� . . . . . , . . . . . •_2— . . - • .. .' . - ... . . . .. . . :, . . �,...� � . - � � � • � ' By Its Clerk NEWVECTOR COPR�IUNICATIONS, INC. By ���`� Its Vice President ST�TE OF MINNFSOTA ) )ss • COt1NTY OF DAKOTA ) The fore ing instrument was acknowledged before me this `�� day of � , 1984, by Leland Knutson, Mayor and Dot� F. Darling, City Cler , on ehalf of the City of Rosemoun�. � ^�� ` � L � :�. .�� �O�.r3,rj��tP11�,11.1.rC'''� �� ,$J � "" • ,. � �„�Y: .r�r,,:Y�ug �GL'GC�aJl� 7 r�Y Co�L'r",F:�r,���ourr.���'`otq STr�TE OF �lashington jss � �v�'tihWy�vtiyyy�,�re°JaR'p Isa; COUIv'TY OF K i n g ) v,"'`�'w�'�'�'.,,w,rv,� � The foregoing instrument was acknowledged before me this � day of April , 1984, by Daivd Laube . the Vice President, Finance of NewVector Communications, Inc. , on behalf of the corporation. . C� Notary ubiic �in and far the State of Washington, residing in Seattle. My commission expires October 14, 1984. . ��: . � � � � : - � ��. � . � . . _3- ��:. � . . .. . .. . . ..'.. : - .. - �� ' .. LEASE AGREII�IENT I. Lessor hereby leases to Tenant that certain parcel of property containing 2,600 square feet situated on SW1/4 SW1/4 Section 29, Township 115, Ranoe 19, County of Dakota, State of riinnesota, together with the noneYclusive right for ingress and egress, seven (7) days a week, twenty-four (2/�) hours a day, on foot or motor vehicle, including trucks, and for the instaZlation and maintenance of utility wires, cables, conduits, '3nd pipes over, under, or along a twenty (20) foot wide right-of-way extending from the nearest public right-of-way County Road 39 (Chippendale Avenue k'est) to the demised premises, � _ . said Property and right-of-way for access being substantially as described herein in Exhibit "A" and shown as "Property" and "Right-af-Way" on Exhibit "A" attached hereto and made a part hereof. 2. Lessor also hereby grants to Tenan� the right to obtain metes and bounds legal description and/or a survey of said Property, and said metes and hounds legal description and/or survey shall, if approved by Lessor, then become Exhibit "B" which shall be attached hereto and made a part hereof, and shall control in the event of discrepancies between it and Exhibit "A". Cost of such work shall be borne by Tenant. 3. This Agreement shall be for an initial term of five (S) years, beginning on the date the Option is exercised by Tenant, at an annual rental of Two Thousand Dollars ($2,000.00) to be paid in equal monthly installments on the first day of the month, in advance, to the City of Rosemount or to such . other person, firm, or place as the Lessor may, from time to time, designate in writing at least thirty (30) days in advance of any rental payment date. . . . _4_ . . . . . . �C r ' . 4 Tenant shall have the right to extend this lease for four (4) '� . ear terms by giving the Lessor written notice of its • additional five (5) y intention to do so at least six (6) months prior to the end of the then current term. 5, The annual rental for the first five (S) year .extension shall be ' creased to Two Thousand Six Hundred Dollars ($2,600.00); the second (2nd) � in . five (5) year extension term shall be increased to Three Thousand Three Hundred Ei hty Dollars ($3,384.00}; t::e third (3rd) five (5) year estension term shall g be increased to Four Thousand Three Hundred Ninety Four pollars (�4,394.00), and the fourth (4th) five (S) year extension term shall be increased to Five Thousand Seven Hundred Twelve Dollars ($5, 712.00). 6, If the Tenant holds over after the expiration of the term of this e or an extension thereof, the Tenant shall be required to pay the rent leas y which was in effect at the end of such term on a month-to-�onth basis sub�ect to the same covenants, terms and conditions. 7. Tenant shall use the Property for the purpose of constructing, maintaining, and operating a Mobile Communications Facility and uses incidental thereto, consisting of one (1) building of approximately 600 square feet and one (1) antenna structure of approximately 190 feet in height and all necessary connecting appurtenances. A security fence consisting o£ chain link construction or similar, but .comparable, construction may be placed around the perimeter of the Property (not including the access easement). All impro vements shall be at the Tenant's expense. Tenant shall maintain the Property in reasonable condition. It is understood and agreed that Tenant's ability to use the Property is continsent up on its obtaining, after the �. \_ -5- *� � ermits, and other ._ execution date of this Agreement, all the certificates, p ma, be required by any federal, state, or local authorities. Zn approvals that Y rejected or anY the event that any of such applications should be finally ermit, license, or approval issued to Tenant is canceled, certificate, p overnmental expires, lapses, or is otherwise withdrawn or terminated by � so that Tenant, in its sole discretion wi11 be unable to use that authority . Property for its intended purposes, Tenant shall have the right to terminate this Ag reement. Notice of the Tenant's exercise of its right to terminate � return receipt 11 be given to Lessor in writing by certified mail, sha the Lessor as requested, and shall be effective upon receipt of such notice bY of the evidenced by the return receipt. AI1 rentals paid for the lease Lessor. Property to said termination date shall be retained by clai.m $. Tenant shall indemnify and hold Lessor harmless against any ersonal injury or property damage resulting from or of liability or loss from p b the Tenant, its arising out of the use and occupancy of the Property Y ents excepting, however, such claims or damages as may be due to servants or ag � or caused by the acts of the Lessor, or its servants or ag ents. 9, Lessor and Tenant, and all parties claiming under them, hereby liabilities and mutually release and discharge each other from all clai.ms�ed b insurance on rights of action arising from or caused by any hazard cover Y ro erty on, or the Property, or covered by'insurance in connection with p P d on the Property, regardless of the cause of the damage or activities conducte � loss. � •, -6- � � � Tenant will be responsible for all utilities required by its use 10. , e Pro erty. Tenant shall pay any real estate taxes payable during the � of th P an� the erm including special assessments, levied against Property t � improvements constructed thereon by Tenant. r_ant within 120 days after termination of the lease term or 11. Te � _ any estension, shall remove its building, tower, P ersonal property and fixtures Pra erty to its original condition, reasonable wear and tear - and restore the p ce ted. If the Tenant fails to do so, the Lessor may do so and the Tenant ex p ro erty so removed may, shall reimburse the Lessor for any cost incurred. �e P P , 'unked or retained by the Lessor. If such time for at Lessor s option, be � re moval causes Tenant to remain on the Property after terminatian of this A�reement, Tenant shall pay rent at the then existing monthly rate or t e � a u�ent term, until such existing monthly pro-rata basis if based on a longer p Y val of ersonal property and fixtures is completed. At time as the remo P on Lessor's advance Lessor's option when this Agreement is terminated, and up ant Tenant will leave the building, foundation, and written notice to Ten , security fence to become the property of Lessor. rQement, 12. Should the Lessor, at any time during the term of this Ag . art of the Property (th� ProP�rty to include only decide to sell all or any p such sale shall the parcel leased hereunder) to a purchaser other than Tenant, 'ect to this Agreement and Tenant`s right hereunder, and any be� under and sub� sale by the Lessor of the portion of the Lessor`s proPerty underlying the -of-wa herein granted shall be under and subject to the right of the" right Y Tenant in and to such risht-of-way• , -7- 4 . ��.._ 13. Lessor covenants that Tenant, on paying the rent and perform�ng the covenants by it herein made, shall and may peacefully and quietly have� ,—., hold, and enjoy the leased Property. 14. Lessor covenants that Lessor is seized of good and sufficient title and interest in the Property and has full authority to enter into and execute this Agreement. . 15. It is hereby mutually agreed and understood that this Agreement contains all agreements, promises, and understandings betwee•� ' the Lessor and Tenant and that no verbal or oral agreements, promises, or understandings shall or will be bindino upon either the Lessor or Tenant in any disgute, controversy, or proceeding at law, and any addition, variation, or modification to this Agreement shall be void and ineffective unless in writing and signed by the parties hereto. 16. This Option and Lease Agreement and the performa„=:e thereof shall be governed, interpreted, construed, and regulated by the laws of the State of Minnesota. 17. This Agreement may not be sold, assigned, or transferred at any time by Tenant except to Tenant's affiliates or subsidiaries. As to other parties, this Agreement may not be sold, assigned, or transferred without the written consent of the Lessor, such consent not to be unreasonably withheld. 18. In the event that either party hereto shall institute suit to enforce any rights hereunder; the prevailing party shall be entitled to recover court costs and a reasonable attorney's fee. Upon appeal, the prevailing party shall be entitled to recovery of court costs and reasonable attorneys' fees incurred as a result of svch appeal. ' -8- � � 19. All notices hereunder must be in writing and shall be deemed �",'. validly given if sent by certified mail, return receipt requested, addressed as follows (or any other address that the party to be notified cnay have designated to the sender by like notice): Tenant: NEtdVEGTOR CO3�IMUNICATIONS, II�'C. P. 0. Box 7329 Bellevue, tJashington 950�8-1329 Lessor: CITY OF ROSE1rI0UNT • 1367 - 145th Str�et East Attention City C"�erk Rosemount, ttinnesota 55068 20. This Ag�eement shall extend to and bind the heirs, personal representatives, successors and assions of the parties hereto. 21. At Lessor`s option, this Agreement shall be subordinate to any mortgage by Lessor which, from time to time, may encumber all or part of the Property or Right-of-Way thereto; provided, however, every such mortgage shall recognize the validity of this Agreement in the event of a foreclosure of Lessor's interest and also Tenant's right to remain in occupancy of and have access to the Property as long as Tenant is not in default of this Agreement. Tenant shall execute whatever instruments may reasonably be required ta - evidence this subordination clause. If the Property is presently encumbered by one or more mortgages, Lessor will provide Tenant with a Non-Disturbance Agreement in recordable form for each such mortgage. . 22. Tenant's antenna structure shall at all times be painted, at Tenant's expense, the same color as the adjoining elevated, storage tank. 23. Tenant shall not allow waste or nuisance on the property 'or allow the property to be used for any unlawful purpose. t� : �-�' -9- ; �- 24. Tenant shall procure and maintain, at Tenant's expense, general liability insurance against any and all claims for injury or property damage occuring in, upon, or about the property during the term of this Agreement, in an amount not less than one r.iillion dollars (51,000,000.00), and namino Lessor as an additional insure�. Such insurance shall be written by a company authorized to engage in the business of general liability insurance in the State of iiinnesota. Certificates shall be issued by the insurance company and . delivered to the Lessor evidencing such paid-up insurance and further providing that such insurance may not be canceled unless Lessor reeeives written notification ten (10) �ays prior to cancellation. 25. Lessor and its agent shall have fu11 access to the premises for the purpose of exanining same. 26. Tenant hereby releases and agrees to hold the Lessor harmless from any damage to the Tenant's property or the property of its agents, employees or injuries that result from Lessor painting the adjacent elevated water storage tank. 27. If the whale of the leased property, or such portion thereof as will make the leased property unsuitable for the �urposes leased within the sole discretion of Tenant, is condemned for any public purpose, then in either of such events, the lease term shall automatically terminate from the time ,when possession is taken for such purpose and rent shall be accounted for between the Lessor and Tenant as of the date of surrender of possession. Such termination shall be without prejudice to the rights of either the Lessor or < the Tenant to recover compensation from the condemnin� authority for any loss or damage caused by such condemnation. Neither the Lessor nor the Tenant shall � . • '�"`' -10- ,-,,. have any rights in or to any award made to the other by the condemning � - � authority. Tenant's recovery of damages from such condemnation shall be limited to damages relating to Tenant's improvements and the loss of use thereof. 28. Before commencing construction of any improvement on the property, the Tenant shall deposit with the Lessor such security or bond as may be reasonably requested by the Lessor to protect the Lessor from any liens or claims for payment resulting from such work. 29. The Lessor may at its discretion from time to time mow the grass on the leased premises. IN tJITNESS k'HEREOF, the parties hereto have set their hands and affixed their respect'ive seals the day and year first above written. CITY QF ROSEMOUNT By��.��--� .G��...1-�— Its Mayor . BY I s erk NEWVECTOR COMMUNICATIONS, INC. sy t�.._-_ It Vi ce President STATE OF MINNFSOTA ) )SS < COUNTY OF DAKOTA ) The fo*eg 'ng instrument was acknowledged before me this �� �'�/'�ay of , 1984, by Leland Rnutson, Mayor and Don� ili�ig, City Clerk on behalf of the City of Rosemou�. , .r.n. ,c � % .- :*., FR".�� .f/.�GO■GGI�N � � :'.^r�,�i:G �V��I1�� . � � � y�� ':•.,:..j,.. NbTARY FU AK � � p a t y�,P,,�,, .,:,� _l�_ Y � STATE OF Washington ) )SS COUNTY OF King ) The fore�oing instrument was acknowledged before r�:� this 3rd day of April , 1984, by David Laube + the Vice President Finance of NewVector Communications, Inc. , on behalr or t e corporation. � � G?�� \ /i C�.�--- Pdotary Public in and for the State of Washington, residing in Seattle. My commission expires October 14, 1984. � ` � —12— . �