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HomeMy WebLinkAboutL011-09 - Extension - #3 - Qwest Wireless, LLC - Blue Boy Tank - Lease Renewal Agreement - 07/01/2013 I Sprint Cascade No.: S> 60XC302 Site Name: Splinter THIRD LEASE RENEWAL BETWEEN THE CITY OF KENT AND SPRINT SPECTRUM REALTY COMPANY, L.P. THIS THIRD LEASE RENEWAL is entered into on the date fully executed below by and between THE CITY OF KENT, a Washington municipal corporation ("Landlord"), and SPRINT SPECTRUM REALTY COMPANY, L.P., a Delaware limited partnership ("Tenant"), successor in interest to QWEST WIRELESS, L.L.C. (formerly known as U.S. WEST WIRELESS L.L.C.), to lease a certain portion of Landlord's property legally described in Exhibit A to the original Lease Agreement. This Third Lease Renewal amends that certain Lease Agreement entered into between Landlord and U.S. West Wireless L.L.C. ("U.S. West") on or about July 20, 1998, as amended by that Lease Renewal Agreement entered into between Landlord and Qwest Wireless, L,L.C. ("Qwest") on or about December 22, 2003, and that Second Lease Renewal entered into between Landlord and Tenant on or about July 9, 2009 (collectively, the "Lease Agreement"), RECITALS A. Pursuant to Section 2 of the original Lease Agreement, the initial Lease Term commenced on July 1, 1998, and expired on June 30, 2003. Landlord and Qwest then entered into the Lease Renewal Agreement to extend the Lease Term, which term commenced on July 1, 2003, and expired on June 30, 2008. Landlord and Tenant then entered into the Second Lease Renewal, to extend the term from July 1, 2008, until June 30, 2013. B. Section 2 of the original Lease Agreement provided for three extension terms of five years each. The first two options to extend the term of the Lease were exercised, as described above. C. Tenant now wishes to exercise its third option to extend the term of the Lease, Tenant and Landlord desire to extend the term of the Lease for the third extension term, which will run retroactively from July 1, 2013, through June 30, 2018. D. Landlord requires, and Tenant agrees, that relocation of a portion of Tenant's Facilities will commence within ninety days of the Effective Date of this Third Lease Renewal, and Tenant has agreed to relocation at Tenant's cost, subject to the terms and conditions set forth in the Lease Agreement, including this Third Lease Renewal, E. Tenant has agreed to repaint the Tower at Tenant's cost, pursuant to the terms and conditions set forth herein. THIRD LEASE RENEWAL - Page 1 (Between City of Kent and Sprint Spectrum Realty Company L.P. @ Blue Boy) Sprint Cascade No.: SE60XC302 Site Name: Splinter F. Landlord and Tenant agree that several of the exhibits to the original Lease Agreement were deficient and shall be modified as provided herein. NOW THEREFORE, Landlord and Tenant hereby agree and covenant as follows: 1. Lease Term. The Lease shall be extended for a term of five years, to commence retroactively beginning on July 1, 2013 (the "Third Extension Term Commencement Date") and ending on June 30, 2018 (the "Termination Date"). 2. Revisions to Exhibits. Exhibit B to the original Lease Agreement did not accurately or legally describe the "Leased Premises," as that term is defined in the Lease Agreement. Upon relocation of Tenant's Facilities pursuant to Section 5, below, the attached Exhibits D-1 through D-4 shall replace the former Exhibit B and all references to the "Leased Premises" shall mean that area as depicted on said Exhibits D-1 through D-4, and all references in the Lease Agreement to Exhibit B shall be hereafter construed as referring to Exhibits D-1 through D-4 instead. Furthermore, the "Access Easement" referenced as Exhibit C in the original Lease Agreement, purportedly executed by John and Leoni Wilkinson in favor of U.S. West on or about March 9, 1998, and potentially encumbering Tax Parcel No. 383120- 0120, was never utilized by U.S. West or any successor entity and ends at the northern edge Landlord's property, as legally described in Exhibit A to the Lease Agreement, whereas Tenant's Facilities are located solely within the southern half of Landlord's property; therefore Landlord and Tenant agree that all references to Exhibit C or the "Access Easement" in the Lease Agreement shall be of no further force or effect. Nothing in this Third Lease Renewal, however, is intended to limit Tenant's right of entry onto the Property in order to exercise its rights under the Lease Agreement, and Landlord explicitly grants Tenant reasonable rights of ingress and egress across Landlord's property in order for Tenant to obtain access to the Leased Premises. 3. Rent. The first two sentences of Section 3.a. of the Lease Agreement shall be amended to read as follows: "3.a. Tenant agrees to pay Landlord as Annual Rent, without notice or demand, the sum of TWENTY-FOUR THOUSAND DOLLARS AND NO/100 ($24,000.00) ("Base Rent"), plus leasehold tax, if required by law, at a rate established by the State of Washington, currently 12.84%, beginning on the Third Extension Term Commencement Date. Thereafter, Base Rent shall be paid in advance, on or before each anniversary of the Third Extension Term Commencement Date for every subsequent year during the term hereof. Rent shall be mailed to: City of Kent, 220 Fourth Avenue South, Kent, THIRD LEASE RENEWAL - Page 2 (Between City of Kent and Sprint Spectrum Realty Company L.P. @ Blue Boy) Sprint Cascade No.: SE60XC302 Site Name: Splinter Washington 98032, Attention: Facilities Superintendent. Any outstanding Rent for the period covering July 1, 2013, through June 30, 2015, shall be due in full within sixty days following the full execution of this Third Lease Renewal." 4. Administrative Fee, Section 12 of the Lease Agreement shall be amended to read as follows: "12. License Fees. Tenant shall pay, as they become due and payable, all fees, charges, taxes and expenses required for licenses and permits require for or occasioned by Tenant's use of the Premises. As part of the costs incurred by Landlord to administer, negotiate changes to, and modify this Lease Agreement, Tenant shall pay Landlord a one-time administrative fee of TWO THOUSAND DOLLARS AND NO/100 ($2,000.00) ("Administrative Fee"). Payment of this Administrative Fee shall be due in full within sixty days following the full execution of this Third Lease Renewal. This Administrative Fee shall not be considered part of the Base Rent or Usage Rent for any purpose, including, but not limited to, application of the state leasehold excise tax." 5. Relocation. A new Section 14 entitled "Relocation" shall be inserted into the Lease Agreement, and the existing Section 14 of the Lease Agreement shall be re-numbered Section 15, and each section that follows shall be re-numbered accordingly. The new Section 14 shall read as follows: "14. Relocation. Tenant understands that Landlord requires Tenant to relocate Tenant's existing under-ground utilities during the Lease Term so that Landlord may redevelop Landlord's property in order to install a pump station. The term "relocate" shall refer to protecting, supporting, temporarily disconnecting, moving to a new location, or removing certain Tenant's underground utilities. Tenant shall, at Tenant's sole cost and expense, relocate all or a part of the existing underground utility improvements it has constructed on the Premises to new conduits provided and described within Exhibits D-1 through D-4, which are attached and incorporated by this reference. All work shall be completed within a timeframe mutually acceptable to Landlord and Tenant, but such relocation must commence within ninety days of the Effective Date of the Third Lease Renewal and be completed no later than one hundred twenty days after commencement." 6. Maintenance. Tenant will repaint the Tower or repair the coating on the Tower to the City's reasonable satisfaction at Tenant's sole cost and expense within one hundred eighty days from the Effective Date of this Third Lease Renewal and in accordance with Section 9(c) of the Lease Agreement, as amended by the Second Lease Renewal, dated July 9, 2009. THIRD LEASE RENEWAL - Page 3 (Between City of Kent and Sprint Spectrum Realty Company L.P. @ Blue Boy) Sprint Cascade No.: SE60XC302 Site Name: Splinter 7. Tenant Improvements. Tenant shall provide Landlord with current as- builts for the Tower and any improvements within sixty days of the Effective Date of this Third Lease Renewal. 8. Certification. Tenant and Landlord each hereby certifies to the other party that the Lease Agreement remains in full force and effect, except as described and amended herein, and that there are no uncured defaults on the part of the other party under the Lease Agreement. 9. Entire Agreement. Except as amended by this Third Lease Renewal, all provisions of the Lease Agreement shall remain in full force and effect except as specifically modified by this Third Lease Renewal. IN WITNESS WHEREOF, the parties hereto have executed this Third Lease Renewal, which shall take effect on the last date signed below ("Effective Date"). LANDLORD: TENANT: CITY OF KENT SPRINT SPECTRUM REALTY COMPANY, L.P.e � I By: By: ` { 7 Print gam0: Print Name t ' Its Its. Date: fg S Date: <= r S THIRD LEASE RENEWAL - Page 4 (Between City of Kent and Sprint Spectrum Realty Company L.P. @ Blue Boy) i i Sprint Cascade No.: SE60XC302 Site Name: Splinter STATE OF WASHINGTON ) ss. COUNTY OF KING ) I hereby certify that on the day of _—PO 4, 9 1- 2015, I know or have satisfactory evidence that Suzette Cooke 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 Mayor, 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. NOTARY PUBLIC, in and for the State of Washington residing at s My appointment expires 7'/` i THIRD LEASE RENEWAL - Page 5 (Between City of Kent and Sprint Spectrum Realty Company L.P. @ Blue Boy) I Sprint Cascade No.: SE60XC302 Site Name: Splinter STATE OF WASHINGTON ) ss. COUNTY OF KING ) I hereby certify that on the fit^ day of 2015, I know or have satisfactory evidence that & Jbl is the person who appeared before me, and said perso acknowledged that he/she signed this instrument, on oath stated that he/she is authorized to execute the instrument on behalf of SPRINT SPECTRUM REALTY COMPANY, L.P., a Delaware limited partnership, as its MLLN11A_ hl (AW& , and such execution to be the free and voluntary act of such party for We 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. y� _010 �' =Explres •1-�'�'�I W k vV'-'�'`- ton NOTARY PUBLIC, in and for the State of Washington TA residing at [I ct 27.2017 My appointment expires P:\Civil\Files\open Files\0863-Cell She Leases\Sprint\Blue Boy\Blue Boy Third Lease Final.doc THIRD LEASE RENEWAL - Page 6 (Between City of Kent and Sprint Spectrum Realty Company L.P. @ Blue Boy) r Q LIJ J � w � I W a > a 0 Z IJ m, Z � i3G L E 00 N j l o t a m auo,�a i aU t� DS .' ----.__. u --� S5no� x a oZ f- 5o>>Y O JQW F-J�OF W� I W Y WU 3 0 z o o j ao FwJ w warm �oWCQ�n ~ I j Kpo NOIJ� v l¢ a z F- U G F Q }W ❑j J w aN WN WW Z W W� L7 3 Z Q w F- in l� I v) ___ 1 _ __ __ -- Q LU I, I illi ' L fill � gill �z L ly jll LA o i1i , N ' o;o Ili _ z i o. 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Omim mN' X X?g-X m,� �,y..n a 'Y rj V 4t m.p" a iII� s �O 2 E S m QA4 x $ a9 �-1 0 6 5 ,, 3"P .T7Ayt �,�X ' a I ' Aa l Pf �x 00 ,r r a m uQ ug 22 "A �jj C.a1C) _ €+ a e iqa Oy �`„ Z> r� Y m m c L^ g" dxSam"A .t . �t m rn , m t^ ME Z 4 m (?7 L Lf : ' FL r , at -'„ si r - &p VU K4,C gg z Yg{ & 4 T dl -, "J"k it e rA b up ,` p �i C1 4 { �' &} y E S P" .�f3F s4 ?fir 't CO� IC O $f t §r f+ .r - t t€ A t' 9 ajb �mri fF REQUEST FOR MAYOWS SIGNATURE �r Routing Information: ,(ALL REQUESTS MUST FIRST BE ROUTED THROUGH THE LAW DEPARTMENT) Approved by Director_ Originator: Phone (Originator): 856-5519 Ingrid Willms-Dixon Date sent: November 25,2015 i Date Required: December 3rd Return iSigned Document to: Contract Termination Date: June June ;30, 2018 VENDOR NAME: Date Finance Notified: '.� Sprint.S ectu rn Realt ':(Only required on contracts - P y 20,000 and over of on any Grant) `. DATE OF COUNCIL APPROVAL: Date Risk Manager Notified. (Required on Non-City standard Contracts/Agreements) Has this Document been Spec[ficallLy Account Number: io05550 ' 626® Authorized in the Budget? YES NO Brief Explanation of Document: Third'Lease Renewal for cell tower located on the Blue Boy water tank site on 113th st and 236th two originals to sign, one will be returned to Tenant \ s All Routed Through The Law De arm n Contracts Must'Be0 # - (This area to be completed by the Law Departmeq.l.) Received: E. Approval of Law Dept.: LawDept. Comments _ $ �. Date Forwarded to Mayor: Shaded Areas To Be Completed By Administration Staff Received: i Recommendations and Comments: f r Disposition; is"- iri-.it.:+ f`, ./fr r"�an;,.`� ✓ �r ''"F., r � .�i `?'t,,�✓� ` `j_.€ s� Date Returned: _ - - - V1Crvlro c] .ine�l sP 9u,1 w1 )ar..�l9nal...iLad i CITY CLERK K E 1 f T CITY OF KENT W n S N,N p T p N 220 4"Avenue South Kent, WA 98032 Fax: 253-856-6725 PHONE: 253-856-5725 Lease Agreement Cover Sheet This document is to be used in lieu of the Contract Cover Sheet SECTION 1 - CONTRACT PROCESSING AND TENANT SETUP: Contract Number: L011-09 (to be completed by Clerk's Office) 1. Responsible Department/Division: PW/Water 2. Contact Person and Title: Ingrid Willms-Dixon for Kevin Swinford Telephone Extension: 5519 3. Tenant (Customer) Name: Sprint Spectrum Realty Company, L.P. 4. Tenant (Customer) Number: 68680 5. General Ledger Account Number: 41005550.56260 6. King County Tax Parcel Number: 172205-9184 7. Address of Parcel: Blue Boy Water Tank site at 11302 SE 2361h PI 8. Type of Lease: Third Lease Renewal 9. Council Authorization Date: 10, Mayor Signature Date: SECTION 2 - LEASE DURATION AND IMPORTANT DATES: 11. Lease Start Date: July 1, 2013 12. Tenant Lease Option Renewal Notification Due Date: June 30, 2018 13. Lease Termination Date: June 30, 2018 14. Lease Duration: 5 years SECTION 3 - RENT DETERMINATION AND DUE DATE: 15. Rent: 24,000.00 16. Rent Due Date: July 1, 2013,and each year after 17. Calculation of Rental Increase(s): An amount equal to the greater of four (4) percent of the percentage increase in the CPI two (2) months prior to the Lease Agreement Cover Sheet—Page 1 of 3 i I adjustment date and the CPI for the month, 12 months prior to the adjustment date. CPI means the Consumer Price Idex - All Urban Consumers, U.S. all items, base period 1982-84=100, sot seasonally adjusted U.S. City Average, issue by the U.S. Bureau of Labor Statistics. any oustanding Rent for the period covering July 1, 2013 through June 30, 2015 shall be due in full within 60 days following full execution of the this third renewal SECTION 4 — LEASEHOLD EXCISE TAX: 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 UTILITIES: 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: ❑ Sewer: ❑ Drainage: ❑ Garbage: ❑ Electricity/Natural Gas: SECTION 6 — MONETARY PENALTIES AND LATE INTEREST CHARGES: 22. Monetary Penalties: 50/b of the late payment for any payment not paid within twenty (20) calender days of the due date. 23. Late Interest: 1% Lease Agreement Cover Sheet—Page 2 of 3 SECTION 7 ® OTHER LEASE CONSIDERATIONS. Special lease considerations, e.g. non-monetary rent, etc a one-time Adminstration fee of $2,000,00, as part of cost incurred by landlord to administer,negotiate changes and modify existing lease. ❑ None (check box if no considerations) Lease Agreement Cover Sheet—Page 3 of 3