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)
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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)
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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
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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
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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