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HomeMy WebLinkAboutL003-09 - Extension - Addendum #1 - T-Mobile West Corporation - Riverbend Driving Range Cellular Phone Tower - 07/17/2008 CITY CLERK CITY OF KENT 220 4"Avenue South KENT Kent, WA 98032 w.s"]""°" 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 Vt of the month or year. Those agreements and amendments will be addressed through subsequent agreements and/or amendments, if any. Contract Number: L003-09-2 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: 54412 Lease Agreement Cover Sheet—Page 1 of 4 5. General Ledger Account Number: P20072 6. King County Tax Parcel Number: 232204-9011 (partial) 7. Address of Parcel: 2020 West Meeker Street, Kent 8. Type of Lease: Addendum One - Commercial Property Rental (Riverbend Driving Range Cellular Phone Tower) 9. Council Authorization Date: N/A 10. Mayor Signature Date: September 18, 2008 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: July 17, 2008 12. Tenant Lease Option Renewal Notification Due Date: 90 calendar days prior the end of the term 13. Lease Termination Date: July 16, 2013 14. Lease Duration: July 17, 2008 through July 16, 2013. One additional remaining five year option period SECTION 3 - RENT DETERMINATION AND DUE DATE: Lease agreement must include provisions establishing the stated rent and, if over one 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 in 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 Renod 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: $1,520.82/month (excludes leasehold excise tax) 16. Rent Due Date: 17th of the Month 17. Calculation of Rental Increase(s): Greater of 4% or the percentage increase in the CPI for the month 12 months prior to the adjustment date. "CPI" means the Consumer Price Index for All Urban Customers, U.S. City Average, All Items, issued by the Bureau of Labor Statistics for the United States Department of Labor (1982-84 = 100). 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.pdf). 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) ❑ NO (go to Question 20) 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. Lease Agreement Cover Sheet—Page 3 of 4 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 natural gas, will be invoiced to the tenant through the central accounts receivable system (ID 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 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 10/c 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 monthly rent for any payment not paid within 5 calendar days of when due (17th of the month) 23. Late Interest: 2% per month on the amount outstanding if not when due (17th of the month) SECTION 7 — OTHER LEASE CONSIDERATIONS: Section 24 o t f he Lease Agreement establishes a rental rate of two times the rents specified for any holding over period after the expiration of the lease term. Lease Agreement Cover Sheet—Page 4 of 4 ADDENDUM ONE TO LEASE AGREEMENT BETWEEN THE CITY OF KENT AND T-MOBILE WEST CORPORATION THIS LEASE ADDENDUM ONE 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"), to lease a certain portion of Landlord's property legally described in Exhibit B to the Lease Agreement. This Addendum One amends that certain Lease Agreement entered into between Landlord and Tenant on or about the July 2, 2003 (the "Lease"). WHEREAS, pursuant to Section 2 of the Lease the initial term commenced on July 17, 2003, and expired on July 16, 2008. Section 2 provides for two (2) extension terms of five (5) years each. Tenant and Landlord desire to extend the term of the Lease for the first extension term which will run from July 17, 2008, to July 16, 2013; NOW THEREFORE, the Landlord and Tenant hereby agree and covenant as follows: 1. Lease Term. The term of the Lease extension shall be for a term of five (5) years and shall commence on July 17, 2008 (the"Commencement Date") and shall end on July 16, 2013 (the "Termination Date"). 2. Rent. Section 3.a. of the Lease shall be amended as follows: 3.a. Tenant agrees to pay Landlord as Monthly Rent, without notice or demand, the sum of ONE THOUSAND FIVE HUNDRED TWENTY DOLLARS AND 82/100 ($1,520.82), plus leasehold tax, if required by law, at a rate established by the State of Washington, currently 12.84%, commencing on the Commencement Date. Subsequently, the Rent shall be paid in advance, on or before the first day of the month during the term hereof. Rent shall be mailed to: City of Kent, 220 Fourth Avenue South, Kent, Washington 98032, Attention: Facilities Superintendent. 3. Certification. Tenant hereby certifies to Landlord that the Lease is In full force and effect and that there are no uncured defaults on the part of the Landlord under the Lease. ADDENDUM ONE TO LEASE AGREEMENT- Page 1 (Between City of Kent and T-Mobile West Corporation (June 16, 2008) @ Riverbend Golf Course) 4. Entire Agreement. Except as amended by this Addendum One, all provisions of the Lease shall remain in full force and effect except as specifically modified by this Addendum One. IN WITNESS WHEREOF,the parties hereto have executed this Addendum One, which shall take effect on the last date signed below. LANDLORD: TENANT: CITY OF KENT T-MOBILE WEST CORPORATION r, By: ': J� �,r\ P a t5uzLffe_ Coo Print a I off- Its: Date: 9-/l -oj' Date: Cl Il at STATE OF WASHINGTON ) ss. COUNTY OF KING ) I hereby certify that on the dayA , 2008, I know or have satisfactory evidence that 5 / 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 the CITY OF KENT as its Al af— , and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. -Notary Seal Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. - � r t ♦�I'1� NOTARY PUt5 in and for the State of Washington residing at My appointor nt expires 7— f 'ZO/?-, 6 lot AN 1P Wks:- ADDENDUM ONE TO LEASE AGREEMENT- Page 2 (Between City of Kent and T-Mobile West Corporation (June 16, 2008) @ Riverbend Golf Course) STATE OF WASHINGTON ) . ss. COUNTY OF KING I hereby certify that ofi th ay f , 2008, I know or have satisfactory evidence that is the person who appeared before me, and said person acknowI ged that he/she signed this instrument, on oath stated that he/she is authorized to execute the instru e n ,beh If of T-MOBILE WEST CORPORATION, a Delaware corporation, as it t , and such execution to be the free and voluntary act of such party for the es bnd purposes mentioned in the foregoing instrument. -Notary Seal Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first0aviamritten. .� i i GOG J \5510N SOT Asp,'oil lP '� - • ~ �'� 's N6TJRY P C in d for to of Washington A \c, = s residing at '��, .\ r,�o ' My appointment expires G h wOfWASICA P:\Clvil\Files\Open Flies\0863\T-Moblie-LeaseAddend umOne-RlverbendGol fCou rse,dec ADDENDUM ONE TO LEASE AGREEMENT - Page 3 (Between City of Kent and T-Mobile West Corporation (June 16, 2008) @ Riverbend Golf Course) REQUEST FOR MAYOR'S SIGNATURE KE • T Please Fill in All Applicable Boxes N WASHINGTON Routing Information (ALL REQUESTS MUST FIRST BE ROUTED THROUGH THE LAW DEPARTMENT) Ori inator: Charlie Lindsey Phone (Originator): 5081 Date Sent: 9/15/2008 Date Required: 9/19/2008 Return Signed Document to: Rosalie CONTRACT TERMINATION DATE: 7/17/2013 VENDOR NAME: T-Mobile West Corp. DATE OF COUNCIL APPROVAL: N/A Brief Explanation of Document: This is Addendum One for the Cell Tower that is at Riverbend Golf. It will terminate in July of 2013. The money from this is applied to the light pole replacement in the parks. Ali Contracts Must Be Routed Through The Law Department RECEIVED (This area to be completed by the Law Department) SEP 15 208 Received: City of Kent �� Office of the Mayor Approval of Law Dept.: i�� 1 Law Dept. Comments: �� ��, l,J�� C� �` l In' -_ / cva R E `�� 1 eca� ►k cs�r, � Tta+' SFr I L— Date Forwarded to Mayor: SCENT LAW DEPT Shaded Areas To Be Completed By Administration Staff Received: Recommendations and Comments: F Disposition: 01 Date Returned: