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Home My WebLink About6.m. T-Mobile Lease Amendment on Connemara Water Tower EXECUTIVE SUMMARY I:\City Clerk\Agenda Items\Approved Items\6.m. T-Mobile Lease Amendment on Connemara Water Tower.docx City Council Meeting: April 17, 2018 AGENDA ITEM: T-Mobile Lease Amendment on Connemara Water Tower AGENDA SECTION: Consent PREPARED BY: Brian Erickson, PE, Director of Public Works / City Engineer AGENDA NO. 6.m. ATTACHMENTS: Final Draft Lease Amendment with T- Mobile APPROVED BY: LJM RECOMMENDED ACTION: Recommend the City Council Approve the Lease Amendment with T-Mobile ISSUE Staff is requesting City Council review and approve the final draft lease amendment with T-Mobile for space on the Connemara Water Tower. BACKGROUND Staff and T-Mobile have been working on updating the current lease agreement with T-Mobile which would allow for the updating the currently installed antennas on the Connemara Water Tower. T-Mobile previously installed additional antennas, but did not have their rent increased as per the Schedule of Rates and Fees in effect at that time. As a result, this amendment includes the cost for the additional antennas that we installed as part of the Second Amendment. Since the original agreement allowed 9 antennas, the increase is only for the additional three. In exchange, T-Mobile’s lease cost would increase $7,500 annually for a total 2018 lease of $32,566.43; however, the additional $7,500 would be prorated to the effective date of this Third Amendment. Beginning 2019, T-Mobile’s annual lease would be $33,869.09. The city attorney has reviewed this agreement. As part of the approval process, T-Mobile paid an escrow to cover review expenses incurred by the city. T-Mobile has also provided a plan set which shows antenna and equipment locations on the tower. Should this agreement be approved, staff will coordinate with T-Mobile and the inspector for construction and installation of their equipment. SUMMARY Staff is requesting that the City Council approve the T-Mobile Lease Amendment for the Connemara Water Tower. Site: A1Q0021A Site Name: Rosemount WT Market MN THIRD AMENDMENT TO TOWER LEASE AGREEMENT THIS AMENDMENT TO TOWER LEASE AGREEMENT (“Amendment”) is made and entered into by and between by and between the City of Rosemount with a mailing address of 2875 145th Street West, Rosemount, Minnesota, 55068-4997 (“Lessor”), and T-Mobile Central LLC, a Delaware limited liability company, successor in interest to APT MINNEAPOLIS, INC. (“Lessee”), with its principal offices located at 12920 S.E. 38th Street, Bellevue, WA 98006. Recitals The parties hereto recite, declare and agree as follows: A. Lessor and Lessee (or as applicable, their respective predecessors in interest) entered into a Tower Lease Agreement dated March 1, 1997 (including any prior amendments, the “Lease”), with respect to Premises located at 13831 Connemara Trail, Rosemount, Minnesota 55068 (Tower No. 2). B. Lessor and Lessee entered into the First Amendment with an effective date of December 29, 2011. C. Lessor and Lessee entered into the Second Amendment with an effective date of October 22, 2014. D. Lessor and Lesseedesire to enter into this Third Amendment in order to modify and amend certain provisions of the Lease. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor and T-Mobile covenant and agree as follows: 1. Lessee will have the right to modify its Antenna Facilities as described and depicted on Exhibit A, which is attached hereto and by this reference incorporated herein, and Lessor hereby consents to and approves of the modifications described and depicted on Exhibit A in all respects. 2. As depicted on Exhibit A, Lessee is adding three (3) antennas. Annual rent shall be increased in the amount of $2,500 per added antenna, for a total rent increase of $7,500.00 annually. This amount shall be prorated for 2018 and payable within 30 days of the approval of this amendment. For 2019, annual rent shall be in the total amount of $33,869.09 and thereafter rent shall be inflated as provided in the Schedule of Rates and Fees for 2018. 3. The terms and conditions of the Lease are incorporated herein by this reference, and capitalized terms used in this Amendment shall have the same meanings such terms are given in the Lease. Except as specifically set forth herein, this Amendment shall in no way modify, alter or amend the remaining terms of the Lease, all of which are ratified by the parties and shall remain in full force and effect. To the extent there is any conflict between the terms and conditions of the Lease and this Amendment, the terms and conditions of this Amendment will govern and control. 4. Lessor represents and warrants to Lesseethat the consent or approval of no third party, including, without limitation, a lender, is required with respect to the execution of this Amendment, or if any such third party consent or approval is required, Lessor has obtained any and all such consents or approvals. 2 IN WITNESS WHEREOF, the parties have executed this Amendment effective as of the date of execution by the last party to sign. City of Rosemount T-Mobile Central LLC, a Delaware limited liability company By:_______________________________ By:__________________________________ Name: William H. Droste Name: Hossein Sepehr Title: Mayor Title: Area Director, Network Engineering and Operations Date:_____________________________ Date:_________________________________ 3 EXHIBIT A Antenna Facilities [See Attached]