HomeMy WebLinkAboutL011-09 - Extension - #2 - Qwest Wireless, LLC - Blue Boy Tank - Lease Renewal Agreement - 07/01/2008 SECOND LEASE RENEWAL
The City of Kent and Sprint Spectrum Realty Company, L.P.
THIS SECOND LEASE RENEWAL ("Second Lease Renewal") is entered into
on the date fully executed below by and between THE CITY OF KENT ("Landlord")
and SPRINT SPECTRUM REALTY COMPANY, L.P., as successor in interest to
QWEST WIRELESS, L.L.C., (formerly known as U.S. WEST WIRELESS,
L.L.C.), a Delaware limited liability company ("Tenant"), to lease a certain portion
of Landlord's property legally described in Exhibit B to the Lease Agreement. This
Second Lease Renewal amends that certain Lease Agreement entered into between
Landlord and Tenant on or about the July 20, 1998 and the Lease Renewal entered
into between Landlord and Tenant on or about December 22, 2003 (collectively the
"Lease").
WHEREAS, pursuant to Section 2 of the Lease the initial term commenced
on July 1, 1998, and expired on June 30, 2003. The first extension commenced on
July 1, 2003 and expired June 30, 2008. Tenant and Landlord desire to extend the
term of the Lease for the second extension term which will run from July 1, 2008,
to June 30, 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 1, 2008 (the "Commencement Date")
and shall end on June 30, 2013 (the "Termination Date").
2. Rent. The first two sentences of Section 3.a. of the Lease shall be
deleted in their entirety and replaced with the following:
Tenant agrees to pay Landlord as Annual Rent, without notice or
demand, the sum of NINETEEN THOUSAND THREE HUNDRED SIXTY DOLLARS AND
58/100 ($19,360.58) ("Base Rent") commencing on the Commencement Date.
Tenant shall also be responsible for the leasehold tax, if required by law, at a rate
established by the State of Washington, currently 12.84%, commencing on the
Commencement Date. Rent shall be mailed to: City of Kent, 220 Fourth Avenue
South, Kent, Washington 98032, Attention: Customer Services.
3. Rent. The entire section 3.e. of the lease shall be deleted in its
entirety and replaced with the following:
The Base Rent shall be increased 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
SECOND LEASE RENEWAL TO LEASE AGREEMENT - Page 1
(Between City of Kent and Sprint Spectrum Realty Company L.P (May 2009)
@ Blue Boy SE60XC302-B)
Date. "CPI" means the Consumer Price Index -- All Urban Consumers U.S., All
Items, base period 1982-84=,100 Not Seasonally Adiusked. U.S City Averaq�,
issued by the U.S. Bureau of Labor Statistics. If the CPI is converted to a different
standard referense base, or otherwise revised, the adjustment set forth in this
paragraph shall be made with the use of the conversion formula published by the
U.S. Bureau of Labor Statistics.
4. Use by Other Providers. Section 6 (e) of the Lease shall be deleted in
its entirety and replaced with the following:
Landlord may elect at any time to place one antenna or antenna
facility on the Tower along with ancillary support equipment in the support facility.
Landlord's antenna and ancillary support equipment shall be in addition to those
otherwise available for use by an Other Provider per subsection 6.a. If Landlord
elects to install an antenna and ancillary support equipment it will be without
charge to the Landlord. Prior to installation of an antenna and ancillary support
equipment, Landlord shall complete, at Landlord's expense, a load study showing
that the Tower and support facilities are capable of accommodating three tenants
(Tenant, Other Provider, and Landlord) and their respective antennae and ancillary
support equipment, Landlord may elect to build its own support building if the
current facility cannot accommodate Landlord's support equipment. Tenant shall
reasonably cooperate with Landlord in connection with Landlord's locating and
placing Landlord's antenna on the Tower and ancillary support equipment in the
ancillary support facilities.
5. Signs/Graffiti'. Section 8 of the Lease shall be deleted in its entirety
and replaced with the following:
Tenant shall commence removal of any graffiti located at the Premises
at its sole cost and expense upon receipt of written notice from Landlord of such
graffiti. If Tenant fails to remove such graffiti within fifteen (15) calendar days of
receipt of written notice, Landlord may enter the Premises and undertake any
activities necessary to abate or remove graffiti located therein. Tenant shall
reimburse Landlord all actual costs incurred by Landlord in connection with such
abatement or removal within 30 days of Landlord's presenting Tenant with a
statement of such costs.
6. Main nance. Section 9 of the Lease shall be deleted in its entirety
and replaced with the following:
a. Tenant shall, at its own expense, maintain the Premises and all
improvements, equipment and other personal property on the Premises in good
working order, condition and repair. Tenant shall keep the Premises free of debris
and anything of a dangerous, noxious or offensive nature or which would create a
hazard or undue vibration, heat, noise or interference. Tenant shall install,
maintain, and replace, when necessary, all landscaping on the Premises required by
City of Kent permits. Tenant shall not use herbicides or other noxious chemicals on
area around Landlord's real property described in Exhibit A.
SECOND LEASE RENEWAL TO LEASE AGREEMENT - Page 2
(Between City of Kent and Sprint Spectrum Realty Company L.P (May 2009)
@a Blue Boy SE60XC302-B)
b. In the event the Landlord or any other tenant of Landlord
undertakes painting, construction or other alterations on the Landlord's property
described in Exhibit A, Tenant shall take reasonable measures, at Tenant's cost, to
cover Tenant's equipment, personal property or Antennae Facilities and protect
them from paint and debris fallout which may occur during the painting,
construction or alteration process. This requirement shall not be interpreted as a
waiver of any claim Tenant may raise either against Landlord or any third party due
to negligence so long as Tenant has taken reasonable measures to protect Tenant's
equipment, property, and facilities as required above.
C. Within thirty (30) days of the full execution of this Second Lease
Renewal, Tenant shall submit to Landlord for approval, which approval will not be
unreasonably withheld, conditioned or delayed, a scope of work to prepare and
paint the Tower. The scope of work shall include the following:
(1) Removal and disposal of existing paint;
(2) Surface preparation and application;
(3) Two (2) color schemes and designs, for Landlord to
choose from, that blend in with the adjacent water tower
color scheme; and
(4) Projected timeline for work to be completed.
All work undertaken by Tenant per the scope of work shall be completed within one
hundred twenty (120) days of Tenant receiving Landlord's written approval of the
scope of work.
7. Access. Section 10 of the Lease shall be amended as follows:
Landlord and its agents shall have the right to enter the Premises at
reasonable times to examine and inspect the Premises. Within five (5) days of the
full execution of this Second Lease Renewal, Tenant shall provide Landlord's
Facilities Manager a key to the Premises. Landlord agrees to provide Tenant with
twenty-four (24) hours prior email notice to Tenant (at
LandlardSaiuti'onsCdlsprint.cam) prior to entry at the Premises, to allow Tenant the
opportunity to have a representative present during such entry by Landlord, except
in the event of an emergency where there is an immediate threat to public safety or
an immediate threat of significant property damage, in which case Landlord shall
provide as much prior notice, if any, as reasonably possible.
8. Interference. The first paragraph of Section 14 of the Lease shall be
deleted in its entirety and replaced with the following:
Tenant's installation, operation, and maintenance of its transmission
facilities shall not damage or interfere in any way with Landlord's activities on the
Premises. Within fifteen (15) calendar days of written notification from Landlord,
Tenant agrees to investigate and correct any such claims of damage or interference
in the event that Tenant's use is the cause thereof. Provided, however, that in the
SECOND LEASE RENEWAL TO LEASE AGREEMENT - Page 3
(Between City of Kent and Sprint Spectrum Realty Company L.P (May 2009)
@ Blue Boy SE60XC302-B)
event of an emergency, Landlord shall provide eight hours prior telephonic notice
to Tenant at (866) 400-6040, followed by email notice to Tenant (at
Landlord Solutions 12rint com). If the interference cannot be corrected without
Tenant's wireless signal quality, coverage or capacity goals from the Premises being
materially impacted, Tenant shall have the right to terminate the Lease.
9. Optional Terminati n. Section 17 of the Lease shall be deleted in its
entirety and replaced with the following:
Except for instances of default as set forth in Section 15, this Lease
may be terminated on thirty (30) days prior written notice (a) by Tenant if it is
unable to obtain or maintain any license, permit, or other governmental approval
necessary for the construction and/or operation of the Antennae Facilities or
Tenant's business; (b) by Landlord if the Landlord decides, in its sole discretion for
any reason, to discontinue use of the Premises for city or public purposes; (c) by
Landlord if it reasonably determines through verifiable scientific evidence, after
Tenant has the opportunity to present written evidence that continued use of the
Premises by Tenant is in fact a threat to health, safety or welfare; (d) by Landlord if
Tenant's use of the Premises violates applicable laws or ordinances, provided that
such violation cannot be remedied within thirty days (30) following receipt of
written notice of such violation, provided further that if Tenant commences to cure
such violation within the thirty (30) day period and is unable to complete the cure
within such thirty (30) day period, Tenant shall have an additional thirty (30) days
within which to complete such cure; or (e) by Landlord or Tenant if Tenant loses its
license to provide PCS/cellular service for any reason, including, but not limited to,
non-renewal, expiration, or cancellation of its license..
10. Remgval gf Facilities upon Termination. Section 18 of the Lease shall
be deleted in its entirety and replaced with the following:
Upon termination of this Lease for any reason, Tenant shall remove its
equipment, personal property, the Antennae Facilities, and leasehold improvements
(collectively, the "Leasehold Improvements"), from the Premises within thirty (30)
calendar days from the date of termination, and shall repair any damage to the
Premises caused by the Leasehold Improvements, normal wear and tear excepted;
all at Tenant's sole cost and expense. Without waiving any other rights Landlord
may have under this Lease, if any Leasehold Improvements are not removed or
necessary repairs are not made to the reasonable satisfaction of Landlord by the
end of this thirty (30) day time period after termination, Landlord may, at its
option, assume ownership of some or all of the Leasehold Improvements, use the
proceeds of the bond or letter of credit under subsection 5(c) to remove some or all
of the Leasehold Improvements and dispose of the same, and use the proceeds of
the bond or letter of credit under subsection 5(c) to repair any damage to the
Premises, normal wear and tear excepted.
11. Indemnity. Section 22.b(3) shall be added to the Lease as follows:
SECOND LEASE RENEWAL TO LEASE AGREEMENT - Page 4
(Between City of Kent and Sprint Spectrum Realty Company L.P (May 2009)
@ Blue Boy SE60XC302-B)
(3) Notwithstanding the foregoing, Tenant shall not indemnify,
defend or hold harmless Landlord for any liabilities, obligations,
damages, penalties, claims, liens, costs, charges, losses or
expenses (including, without limitation, reasonable fees and
expenses of attorneys, expert witnesses and other consultants),
arising out of the Indemnitee's negligence or willful misconduct.
12. Notices. Section 28 of the Lease shall be deleted in its entirety and
replaced with the following:
All notices required or permitted to be given hereunder shall be in writing and
shall be sent U.S. certified mail, return receipt requested, personal service, or by
facsimile transmission addressed as set forth below:
If to Landlord, to: Facilities Manager
Parks, Recreation & Community Services Department
City of Kent
220 Fourth Avenue South
Kent, Washington 98032
Fax Number: (253) 856-6050
With a copy to: City Clerk
City of Kent
220 Fourth Avenue South
Kent, Washington 98032
Fax Number: (253) 856-6725
If to Tenant, to: Sprint Nextel Property Services
Mailstop: KSOPHT0101-Z2650
6391 Sprint Parkway
Overland Park, KS 66251-2650
Email :(866) 400-6040
With a copy to: Sprint Nextel Law Department
Mailstop: KSOPHT0101-Z2020
6391 Sprint Parkway
Overland Park, KS 66251-Z2020
Attn: Real Estate Attorney
Either party hereto may, by written notice to the other, designate such other
address for the giving of notices as being necessary. All notices shall be deemed
given on the day such notice is personally served, or on the date of the facsimile
transmission, or on the third day following the day such notice is mailed in
accordance with this Section.
SECOND LEASE RENEWAL TO LEASE AGREEMENT - Page 5
(Between City of Kent and Sprint Spectrum Realty Company L.P (May 2009)
@ Blue Boy SE60XC302-8)
13. Certification. Tenant hereby certifies to Landlord, to the best of
Tenant's actual knowledge, that, as of the date of full execution of this Second
Lease Renewal, the Lease is in full force and effect and that there are no uncured
defaults on the part of the Landlord under the Lease.
14. Entire Agreement. Except as amended by this Second Lease Renewal,
all provisions of the existing Lease shall remain in full force and effect except as
specifically modified by this Second Lease Renewal.
IN WITNESS WHEREOF, the parties hereto have executed this Second
Lease Renewal, which shall take effect on the last date signed below.
LANDLORD: TENANT:
CITY OF KENT Sprint Spectrum
Realty Company, L.P.
r
_.
By: Byt.
P nt e: Print Name: n Ca le
I Its: Site Dev o m nt Manager
Dater Date: f� l
SECOND LEASE RENEWAL TO LEASE AGREEMENT- Page 6
(Between City of Kent and Sprint Spectrum Realty Company L.P (May 2009)
@ Blue Boy SE60XC302-8)
STATE OF WASHINGTON )
ss.
COUNTY OF KING )
I hereby certify that on the day of �� 2009, I know
or have satisfactory evidence that Suzette Cooke is the person who appeared
before me, and said person acknowledged that she signed this instrument, on oath
stated that 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.
iilt!fool
z
Z = NOTARY PUBLI In and fog,the State of Washington
! pt�a? tiO : Residing at
e
_ L
OFy W* Cy`- My appointment xpires
Al
SECOND LEASE RENEWAL TO LEASE AGREEMENT - Page 7
(Between City of Kent and Sprint Spectrum Realty Company L.P (May 2009)
Ca) Blue Boy SE60XC302-B)
STATE OF WASHINGTON )
ss.
COUNTY OF KING )
r
I hereby certify that on the 1� day of "Axv 2009, I know or
have satisfactory evidence that Alan Cagle 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 SPRINT
SPECTRUM REALTY COMPANY, L.P., a Delaware corporation, as its Site
Development Manager, 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.
RA, 1101\D M. FOSTER e-kli
NOTARY PUBLIC NOTARY PUBLIC, in and for the State of Washington
STATE OF WASHINGTON Residing at ),C_,.,r_,C'n, rdr
COMMISSION EXPIRES My appointment expires
MARCH 29 2012
P:\Civi I\Files\Open Files\0863 LellTowerLeases\BlueBoySecond Renewa I(Tenants print).docx
SECOND LEASE RENEWAL TO LEASE AGREEMENT - Page 8
(Between City of Kent and Sprint Spectrum Realty Company L.P (May 2009)
@ Blue Boy SE60XC302-B)
REQUEST FOR MAYOR'S SIGNATURE
KENT Please Fill in All Applicable Boxes
wn.�v1"ci w,,
Routing Information (ALL REQUESTS MUST FIRST BE ROUTED THROUGH THE LAW DEPARTMENT)
Originator: Charlie Lindsey Phone (Originator): 5081
Date Sent: 7/7/2009 Date Required: 7/10/2009
Return Siqned Document to: Rosalie CONTRACT TERMINATION DATE: 6/30/2013
VENDOR NAME: Sprint Spectrum DATE OF COUNCIL APPROVAL: 7/7/2009
Brief Explanation of Document: Second Lease Renewal for Blue Boy Water Tank. Sprint has one
Cell Tower attached to the Blue Boy Water Tank. They pay the City of Kent an annual amount.
This renewal is effective through June 30,��0. o ) 3
All Contracts Must Be Routed Through The Law Department
(711,I5 area_(`o tyen,tp n Upleted by the Law Department)
Received:
Jl1'L 20U9 �`
Approval of Law Dept.:
Law Dept. Comments: KEr4i`ww�k�
Date Forwarded to Mayor;
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Shaded Areas To Be Completed By Administration Staff
Received:
Recommendations and Comments:
Disposition: 61 f
Date Returned:
f �
CITY CLERK
CITY OF KENT
T220 4`"Avenue South
wnsH Groh 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 .SET-UP:
Contract Number: 1.01/- 09- 3
1. Responsible Department/Division: PW/Water
2. Contact Person and Title: Kevin Swinford, Field Supervisor
Telephone Extension: 5613
3. Tenant (Customer) Name: Sprint Spectrum Realty Company, L.P.
4. Tenant (Customer) Number: 69680
5. General Ledger Account Number: 41005550.56260
6. King County Tax Parcel Number: 172205-9184
7. Address of Parcel: 11302 SE 236th PI
8. Type of Lease: Second Lease Renewal
9. Council Authorization Date: 7/7/2009
10. Mayor Signature Date: 7- 7- 07
SECTION 2 - LEASE DURATION AND IMPORTANT DATES:
11. Lease Start Date: 7/1/2008
12. Tenant Lease Option Renewal Notification Due Date: 4/1/2013
13. Lease Termination Date: 6/30/2013
14. Lease Duration: 5 years
Lease Agreement Cover Sheet—Page 1 of 3
SECTION 3 — RENT DETERMINATION AND DUE' DATE:
15. Rent: $19,360.58
16. Rent Due Date: 7/1/2009 and each year after
17. Calculation of Rental Increase(s): 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, U.S. all
items, base period 1982-84=100 , not seasonally adjusted U.S. City Average,
issued by the U.S. Bureau of Labor Statistics.
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.
0 Does Not Apply
❑ water:
Sewer:
[]' Drainage:
❑ Garbage:
Electricity/Natural Gas:
Lease Agreement Cover Sheet—Page 2 of 3
SECTION 6 — MONETARY PENALTIES AND LATE INTEREST CHARGES:
22. Monetary Penalties: 50/6 of the late payment for any payment not paid
within twenty (20) calendar days of when due.
23. Late Interest: 1%
SECTION 7 — OTHER LEASE CONSIDERATIONS:
Special lease considerations, e.g. non-monetary rent, etc None
Lease Agreement Cover Sheet—Page 3 of 3