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HomeMy WebLinkAbout03/21/2006 Blue Sheet Cellular Tower Lease Agreement TOWN COUNCIL MEETING INFORMATION TOWN OF MARANA MEETING DATE: March 21, 2006 AGENDA ITEM: 1.1 TO: MAYOR AND COUNCIL FROM: Roy Cuaron, Finance Director SUBJECT: Resolution No. 2006-42: Relating to Real Estate; approving and author- izing an amendment to the Sprint Cellular Tower lease agreement. DISCUSSION In March 2004, the Town acquired the cellular tower located at the Marana Operations Center (MaC) from Trico Electric Cooperative, Inc. In doing so, the Town's successor interest in- cluded the assignment of a lease agreement with Sprint Spectrum Realty Company ("Sprint") for lease of tower space at the Mac. The current lease expires in December 2006. In return for exercising their renewal option immediately, guaranteeing rent payments for the next five years, and in consideration of market conditions, Sprint is requesting an amendment to lease agreement that reduces the current rent amount from $2200 to $1800. The amendment also contains a provision increasing the rent amount by 3.7% annually. Staffhas conferred with the IT Director and are in agreement that the proposed rent amount is fair and equitable and consistent with current market conditions. By way of example, the Town recently executed a lease agreement with Nexte1 for tower space at the former town hall for $1500 per month. Further, the Sprint amendment assures the Town of lease income for the next five years. ATTACHMENT First Amendment to Lease Agreement between the Town of Marana and Sprint. RECOMMENDATION Staff recommends Council approval of the first amendment to the lease agreement. SUGGESTED MOTION I move to approve Resolution No. 2006-42. RC/rc/32106 MARANA RESOLUTION NO. 2006-42 RELATING TO REAL ESTATE; APPROVING AND AUTHORIZING AN AMENDMENT TO THE SPRINT CELLULAR TOWER LEASE AGREEMENT. WHEREAS, the Town of Marana acquired a cellular tower located at 5100 W. Ina Road, Tucson, Arizona; and WHEREAS, concurrent with the purchase ofthe tower, the Town acquired a successor inter- est in a lease agreement for cellular tower space with Sprint Spectrum Realty Company ( "Sprint"); and WHEREAS, the current lease agreement expires in December 2006, and both the Town of Marana and Sprint desire to amend and renew the lease agreement immediately. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that the First Amendment to the lease agreement between the Town ofMa- rana and Sprint, attached hereto as Exhibit A is hereby approved, and the Town Manager is author- ized to execute it for and on behalf ofthe Town of Marana. IT IS FURTHER RESOLVED that the Town's Manager and staff are hereby directed and au- thorized to undertake all other and further tasks required or beneficial to carry out the terms, obliga- tions, and objectives of the aforementioned agreement. PASSED, ADOPTED, and APPROVED by the Mayor and Council of the Town of Maran a, Arizona, this 21 st day of March, 2006. Mayor Ed Honea ATTEST: Jocelyn C. Bronson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney RC/rc/032106 Sprint Site ID: PH04XC071-E Site Name: TUCCORTARO FIRST AMENDMENT TO LEASE AGREEMENT THIS FIRST AMENDMENT TO LEASE AGREEMENT ("Amendment") is made effective as of _, 20_ ("Effective Date"), by and between Town of Marana, successor in interest to Arizona Electric Power Cooperative, Inc., a nonprofit rural electric cooperative Arizona corporation, previously referred to as AEPCO, ("Owner") and Sprint Spectrum Realty Company LP, a Delaware Limited Partnership, successor in interest to Sprint Spectrum L.P, a Delaware limited partnership, ("Sprint"). BACKGROUND Pursuant to a LEASE AGREEMENT dated December 3, 1996 ("Lease Agreement"), Owner leased to Sprint a certain portion of real property located at 51 00 West Ina Road, City of Tucson, County of Pima, State of Arizona, as more particularly described in Exhibit A to the Lease Agreement ("Site"). Owner and Sprint desire to amend the Lease Agreement as set forth herein. Words and phrases having a defined meaning in the Lease Agreement have the same respective meanings when used herein unless otherwise expressly stated. AGREEMENT The parties agree as follows: 1. following: Term. Section eight (8) of the Lease Agreement is amended by adding the Notwithstanding anything set forth in Section eight (8) to the contrary, the current Term of the Lease Agreement will expire on Apri12, 2006. Commencing on Apri13, 2006, the term of this Lease Agreement ("New Initial Term") is sixty (60) months. The Lease Agreement will be automatically renewed for up to five (5) additional terms (each a "Renewal Term") of sixty (60) months each. Each Renewal Term will be deemed automatically exercised without any action by either party unless Sprint gives written notice of its decision not to exercise any option(s) to Owner before expiration of the then current term. 2. following: Rent. Section nine (9) of the Lease Agreement IS amended by adding the Notwithstanding anything set forth in Section nine (9) to the contrary, effective February 3, 2006, Rent shall be paid in equal monthly installments of One Thousand Eight Hundred and 00/100 dollars ($1,800.00), and shall continue during the Term (until increased as set forth herein), partial months to be prorated, in advance. Thereafter, commencing on December 3, 2006, the Rent will be increased annually by three and seven-tenths percent (3.7%) of the then current Rent. Sprint initials: _ MD7:50YD 2/6106 Bradtord:KK Sprint Site ID: PH04XC071-E 3. Notices. Section twenty (20) of the Lease Agreement is amended by deleting the entire provision and substituting the following provision in its place: "All notices, requests, demands or other communications with respect to this Lease Agreement, whether or not herein expressly provided for, must be in writing and will be deemed to have been delivered either five (5) business days after being mailed by United States first- class certified or registered mail, postage prepaid, return receipt requested; or the next business day after being deposited with an overnight courier service for next-day delivery to the parties at the following addresses (the addresses may be changed by either party by giving written notice.) Owner: Town of Marana 11555 West Civic Center Drive Marana, AZ 85653 Sprint: Sprint Spectrum Realty Company LP Sprint Contracts & Performance Site ID PH04XC071-E Mailstop KSOPHT0101-Z2650 6391 Sprint Parkway Overland Park, KS 66251-2650 with a copy to: Sprint Law Department Attn: Real Estate Attorney Mailstop KSOPHTO 1 01-Z2020 6391 Sprint Parkway Overland Park, KS 66251-2020" 4. Reaffirmation; Intention to be Bound. Except as provided in this Amendment, each and every term, condition and agreement contained in the Lease Agreement will remain in full force and effect. The parties reaffirm that the representations and warranties made by each of the parties in the Lease Agreement are true and accurate as of the Effective Date. The parties executing this Amendment, on behalf of themselves, their assigns and successors, acknowledge and reaffirm their intention to be bound by the terms and conditions of the Lease Agreement. SIGNATURES APPEAR ON THE FOLLOWING PAGE Sprint initials: _ MD7:50YD 2/6/06 Bradford:KK 2 Sprint Site ID: PH04XC071-E IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the Effective Date. Owner: Town of Marana Sprint: Sprint Spectrum Realty Company LP, a Delaware Limited Partnership By: lease use blue ink) Printed Name: Title: Date: Sprint initials: MD7:50YD 2/6/06 Bradlbrd:KK 3 Sprint Site ID: PH04XC071-E RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Sprint Contracts & Performance Mailstop KSOPHTOlOl-Z2650 6391 Sprint Parkway Overland Park, Kansas 66251-2650 [s ace above this line for Recorder's use] ATTACHMENT 1 TO FIRST AMENDMENT TO LEASE AGREEMENT MEMORANDUM OF AMENDMENT TO LEASE AGREEMENT THIS MEMORANDUM OF AMENDMENT TO LEASE AGREEMENT ("Amended Memorandum"), by and between Town of Marana, successor in interest to Arizona Electric Power Cooperative, Inc., a nonprofit rural electric cooperative Arizona corporation, previously referred to as AEPCO, ("Owner") and Sprint Spectrum Realty Company LP, a Delaware Limited Partnership, successor in interest to Sprint Spectrum L.P, a Delaware limited partnership ("Sprint"), evidences that the lease made and entered into by written LEASE AGREEMENT between Owner and Sprint or Sprint's affiliate, dated December 3, 1996 ("Lease Agreement"), has been amended by written agreement between the parties (the "Amendment"). The Amendment provides in part that Owner leases to Sprint certain real property owned by Owner and located at 51 00 West Ina Road, City of Tucson, County of Pima, State of Arizona, together with non-exclusive utility and access easements (the "Site"). The Amendment grants Sprint the option to extend the Lease Agreement for five (5) additional sixty (60) month terms after the expiration of the new initial sixty (60) month term which commenced on April 3, 2006. SIGNATURES APPEAR ON THE FOLLOWING PAGE Sprint initials: _ MD7:50YD 2/6/06 Bradlind:KK 4 Sprint Site ID: PH04XC07l-E IN WITNESS WHEREOF, the parties have executed this Amended Memorandum as of the day and year indicated below. Owner: Town of Marana (please use blue ink) MD7:50YD 2/6/06 Bmdt{lrd:KK Sprint: Sprint Spectrum Realty Company LP, a Delaware Limited Partnership By: Printed Name: Title: Date: Sprint initials: 5 Sprint Site ID: PH04XC071-E Site Name: TUCCORTARO (please use blue ink) STATE OF ) ) ss. ) COUNTY OF The foregoing instrument was (choose one) Dattested or Dacknowledged before me this _ day of ,20_, by ~ , as of Town of corporation, on behalf of the corporation. Marana,a In witness whereof! hereunto set my hand and official seal. NOTARY PUBLIC Sprint NOTARY BLOCK STATE OF KANSAS ) ) ss. COUNTY OF JOHNSON ) Acknowledgment by Corporation Pursuant to Uniform Acknowledgment Act The foregoing instrument was acknowledged before me this _ day of , 200_, by _[name] , [title], on behalf ofSprint Spectrum Realty Company LP, a Delaware Limited Partnership. In witness whereof! hereunto set my hand and official seal.