HomeMy WebLinkAboutL008-09 - Other - Addendum #2 - T-Mobile West Corporation - Centennial Building Cellular Phone Tower - 08/01/2006 CITY CLERK
CITY OF KENT
KENT 2204nue South
KenteWA 8032
WASHINGTON
Fax. 253-856-6725
PHONE: 253-856-5725
Lease Agreement Cover Sheet
Instructions
This document is to be used in lieu of the Contract Cover Sheet
SECTION 1 — CONTRACT PROCESSING AND TENANT SET-UP:
All lease agreements must be signed by the Mayor or his/her designee and approved
by the City Council. Lease amendments, extensions, renewals, and assignments may
or may not require Council approval (contact the Law Department), but they must be
signed by the Mayor.
The City Clerk's Office will perform the following tasks associated with all lease
agreements and amendments:
• Assign a sequential lease agreement number based on starting with 001 and
preceded with "L", e.g. L001.
• Scan the Lease Agreement Cover Sheet, Lease Agreement (or Amendment) and,
if any, related supporting documentation into the document imaging system.
• Provide notification via e-mail to the Contact Person (Question 2), Law and
Customer Services.
The Lease Agreement Cover Sheet is to be completed for each existing and active and
all subsequent lease agreements, lease amendments and assignments of lease. There
is recognition that certain existing and active agreements and amendments may not
incorporate new policies, e.g. commencement of the lease on the 1st of the month or
year. Those agreements and amendments will be addressed through subsequent
agreements and/or amendments, if any.
Contract Number: L008-09-3
1. Responsible Department/Division: Parks/Facilities
2. Contact Person and Title: Charlie Lindsey
Telephone Extension: 5081
3. Tenant (Customer) Name: T-Mobile USA, Inc
4. Tenant (Customer) Number: 64567
Lease Agreement Cover Sheet—Page 1 of 4
5. General Ledger Account Number: P20072.56250
6. King County Tax Parcel Number: 982570-0566 (partial)
7. Address of Parcel: 400 West Gowe Street, Kent
8. Type of Lease: Addendum Two - Commercial Property Rental (Centennial
Building Cellular Phone Tower)
9. Council Authorization Date: N/A
10. Mayor Signature Date: November 20, 2006
SECTION 2 - LEASE DURATION AND IMPORTANT DATES:
All lease agreements and amendments must reflect the lease start date, lease
termination date and the duration of the lease. The lease agreement may also
authorize the tenant to request an extension of the lease term, i.e. either 'month to
month" or for a defined period of time. The tenant must provide advanced written
notice of the intent to exercise this lease option.
A date certain lease start date must be established in the lease agreement and must
be the first of the month. Commencement of certain leases may be predicated on
certain actions by the tenant, e.g. installation of cellular tower equipment. In such
instances, a reasonable fixed future date must be established in the lease agreement.
11. Lease Start Date: March 1, 2006
12. Tenant Lease Option Renewal Notification Due Date: 120 days prior to
commencement of the successive Renewal Term, i.e. expiration of current term
13. Lease Termination Date: February 28, 2011
14. Lease Duration: March 1, 2006 through February 28, 2011. Two remaining
additional five year option periods
SECTION 3 - RENT DETERMINATION AND DUE DATE:
Lease agreement must include provisions establishing the stated rent and, if over one
9 p 9
year in length, modification of stated rent. Typically, rental increases are based on
changes in the Consumer Price Index. Example of possible contract language:
Effective as of each anniversary of the Commencement date (the
"Adjustment Date") by an amount equal to the greater of four (4) percent
or the percentage increase rn the CPI two (2) months prior to the
Adjustment Date and the CPI for the month 12 months prior to the
Adjustment Date. "CPI" means the Consumer Price Index - All Urban
Consumers, (Seattle-Tacoma-Bremerton, WA), All Items, base Denod
1982-84=100, Not Seasonally Adjusted, issued by the U.S. Bureau of Labor
Statistics. If the CPI is converted to a different standard reference base, or
otherwise revised, the adjustment set forth in this paragraph shall be made
Lease Agreement Cover Sheet-Page 2 of 4
with the use of the conversion formula published by the U.S. Bureau of
Labor Statistics.
15. Rent: $1,500.00/month (excludes leasehold excise tax)
16. Rent Due Date: 1st of the Month
17. Calculation of Rental Increase(s): 20% of the Monthly Rent paid during the
preceding term.
SECTION 4 - LEASEHOLD EXCISE TAX:
Leasehold excise tax applies to the possession and use of publicly owned real property
by a private sector individual, business or other organization. This tax is calculated
based on 12.84 percent of the contract rent amount. See also Department of
Revenue Leasehold Excise Tax Frequently Asked Questions and Answers
(http://dor.wa.gov/docs/Pubs/IndustSpecific/`Leasehold.pd ). Contact the Customer
Services Financial Analyst (LIDs/Receivables) or the Audit Manager regarding
questions in this area.
18. Is this lease subject to leasehold excise taxes?
® YES (go to Question 19)
❑ NO, reason:
19. Are leasehold excise taxes for this tenant centrally assessed, i.e. directly
collected from the tenant by the Washington State Department of
Revenue?
® YES (attach written verification received directly from DOR or indirectly
through the tenant, e.g. DOR notification letter)
Question 20 El NO (90 to Q )
20. Does Lease Rent include Leasehold Excise Tax?
(Leasehold taxes must be broken out on the invoice and coded: Business
unit.32500.0303)
❑ YES Calculate the leasehold excise tax (Stated Rent divided by 1.1284)
❑ NO Calculate the leasehold excise tax (Stated Rent times .1284)
SECTION 5 - APPLICABLITY OF UTLITIES:
The Lease agreement must include provisions establishing responsibility for payment
of utilities, including but not limited to electricity, natural gas, water, sewer, storm
drainage, and garbage collection and disposal services.
In certain instances, the utility service may not be applicable, e.g. septic system, or
may not be provided by the City, e.g. Highline Water District service area. In all
instances, City utilities will be billed through the Customer Services utility billing
system. Other utilities paid by the City on behalf of the tenant, e.g. electricity or
Lease Agreement Cover Sheet-Page 3 of 4
natural gas, will be invoiced to the tenant through the central accounts receivable
system (JD Edwards).
Electricity or natural gas charges may be established based on actual consumption,
e.g. usage of a meter or by a reasonable amount established through appropriate
financial analysis. Separate meters for measurement should not be established on
City-owned or leased properties. The dollar amount of electric and natural gas
charges must be included in the lease agreement (amendment) and should be subject
to future modification based on appropriate methodologies, e.g. change in rate, etc.
Contact Finance Customer Services for questions in this area, as well as ensuring that
City accounts are transferred into the name of the tenant.
21. Applicability of Utilities — Check all that utilities that are affected and
indicate provider (e.g. City of Kent), Account Number or basis of
exclusion.
❑ Does Not Apply
❑ Water: No services
❑ Sewer: No services
® Drainage: Paid by City
❑ Garbage: No services
® Electricity/Natural Gas: Puget Sound Energy (paid to City). Lease
Agreement requires tenant to separately meter consumption. Facilities
established a separate charge of $50.00 per month in lieu of usage of a
separate meter. This amendment increases this charge to $100.00 per month
effective August 1, 2006.
Ensure that Finance Customer Services is properly notified to ensure City utility
account, if any, is recorded into the name of the tenant if so established in the
Agreement. Ensure all other applicable charges are properly invoiced to the tenant.
SECTION 6 — MONETARY PENALTIES AND LATE INTEREST CHARGES:
Lease agreement should contain provisions establishing penalties and must contain
provisions establishing late interest charges. Late interest (also referred to as
"finance charges") should be consistent with Chapter 3.10 of the Kent City Code, i.e.
currently 1% of the amount of the unpaid balance or $2.00, whichever is greater, if
not paid within 30 days from the due date.
22. Monetary Penalties: 5% of the late payment for any payment not paid within 5
calendar days of when due (1st of the month)
23. Late Interest: 1 1/2% per month on the amount outstanding if not when due
(15Y of the month)
SECTION 7 — OTHER LEASE CONSIDERATIONS:
Section 2.A.1 of Addendum One states in part, "Leasehold tax is included in the
Monthly Rent above". This is not consistent with the Lease Agreement. Tenant has
continued to pay on the basis of stated rent excluding leasehold excise tax.
Lease Agreement Cover Sheet—Page 4 of 4
ADDENDUM TWO TO LEASE AGREEMENT BETWEEN
THE CITY OF KENT AND T-MOBILE WEST CORPORATION
THIS LEASE ADDENDUM TWO is entered into on the date fully executed below by and
between the CITY OF KENT ("Landlord") and T-MOBILE WEST CORPORATION, as
successor in interest to VoiceStream PCS III Corporation, a Delaware corporation
("Tenant"),for certain rooftop space and certain interior space at the building located at 400 W.
Gowe, Kent, Washington. This Addendum Two amends that certain Lease Agreement entered
into between Landlord and Tenant on or about the January 18, 2001, and Addendum One, on or
about dated June 27, 2006, (the "Lease").
WHEREAS, pursuant to Section 10 of the Lease, Landlord and Tenant agree to make
reasonable adjustments to the lease of the monthly electrical reimbursement amount from time
to time. Tenant and Landlord desire to adjust the monthly electrical reimbursement amount;
NOW THEREFORE, the Landlord and Tenant hereby agree and covenant as follows:
1. Section 10 of the Lease shall be amended as follows:
10. Utilities: Tenant shall pay to Landlord One Hundred Dollars($100.00) per
monthly ("Additional Rent") beginning August 1, 2006. This Additional Rent is for the purpose
of reimbursing Landlord for Tenant's electrical usage Additional Rent shall be payable monthly
on or before the 5th of each month. Tenant shall have no further liability or obligation to pay
Landlord for electrical power consumption. This Additional Rent shall not be subject to the Rent
increase provisions as set forth in Section 2a of the Lease. During the Lease term, at Landlord's
request, (which request shall be no more frequent that once every twelve (12) months),
Landlord shall estimate the electrical power charge for the preceding twelve months and
Additional Rent shall be adjusted accordingly.
2. Entire Agreement. Except as amended by this Addendum Two, all provisions of
the Lease shall remain in full force and effect except as specifically modified by this Addendum
Two.
IN WITNESS WHEREOF,the parties hereto have executed this Addendum Two, which
shall take effect on the last date signed below.
LANDLORD: TENANT:
CITY OF KENT T-MOBI W T C RPORATION
By: By:
Print a it-/7r Prin
Its / Its: C OLDS
D;6t -D� Date
(Notary Acknowledgements Appear on Next Page)
ADDENDUM TWO TO LEASE AGREEMENT BETWEEN
CITY OF KENT AND T-MOBILE WEST CORPORATION - Page 1 (October23, 2006)
STATE OF WASHINGTON )
ss.
COUNTY OF KING )
I hereby certify th t the d f , 2006, I know or have
'sa factory evidence that is the person who appeared
b me, and said perso ack ledged that he/she signed this instrument, on oath stated that
he/sh authorized to execute the instrument on behalf of the CITY OF KENT as its
and such execution to be the free and voluntary act of such party for the
uses and purp es mentioned in the foregoing instrument.
-Notary Seal Must Appear Within This Box-
IV VV1TV.S; WHEREOF, I have hereunto set my hand and official seal the day
and k f�tis 046,Yvritten.
Y r�ti N
��, 4�Ip•Q� ,�•" NOTARY IC n and�r the State of Washington
C` wa
`h residing a T\\ M a ex -/
Y appointment expires /'off
-
STATE OF WASHINGTON )
S5.
COUNTY OF KING )
__
I hereby certify that on the �O day of 2006, I know or have
satisfactory evidence that o,_ is the person who appeared before
me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she
is authorized to execute the instrument on behalf of T-MOBILE WEST CORPORATION, a
Delaware corporation, as itsbiC-,ec-tN� and such execution to be the
free and voluntary act of such party for the uses purposes mentioned in the foregoing
instrument.
-Notary Seal Must Appear Within This Box-
IN WI NESS WHEREOF, I have hereunto set my hand and official seal the day and
year fir fin.
yff- �t"iom off
"" °�''y i H. Goldman
� ' � : ^�tr NOTARY PU LIC, in and or the State of Washington
�'�,,� 10 residing at
�iJ O My appointment expires
F a
P\Gwl\Files\Open Files\0863\voicestream(T-Mobile West)LeaseAddendumTwo-CentCenterRooFtop do[
ADDENDUM TWO TO LEASE AGREEMENT BETWEEN
CITY OF KENT AND T-MOBILE WEST CORPORATION - Page 2 (October23, 2006)