1f. Approval of Lease Extension, Verizon Cell Tower, Water Tower on W. 76th St.
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952,227,1100
Fax: 952,227,1110
Building Inspections
Phone: 952,227.1180
Fax: 952,227,1190
Engineering
Phone: 952,227.1160
Fax: 952,227,1170
Finance
Phone: 952,227,1140
Fax: 952,227,1110
Park & Recreation
Phone: 952,227.1120
Fax: 952,227,1110
Recreation Center
2310 Coulter Boulevard
Phone: 952,227,1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952,227.1130
Fax: 952,227,1110
Public Works
1591 Park Road
Phone: 952,227,1300
Fax: 952,227,1310
Senior Center
Phone: 952,227,1125
Fax: 952,227.1110
Web Site
www.ci.chanhassen.mn.us
-14-
TO:
Todd Gerhardt, City Manager
Laurie Hokkanen, Assistant City Manager~
FROM:
DATE:
August 20, 2008
~
RE:
Verizon Cell Tower Lease Agreement, W. 76th St. Water Tower
PROPOSED MOTION
The City Council authorizes the Mayor to enter into a lease amendment
with Verizon Wireless to extend tower space rental at the W. 76th St.
Water Tower with options from 2012 to 2027.
BACKGROUND
In 1997, the City entered into a water tower lease agreement with US West (now
Verizon Wireless) for the placement of up to twelve cellular phone antennas on the W.
76th Street water tower. This lease had an initial term of five years, with the option of
two additional five year renewal terms. The lease was amended in 2005 to provide for 3
additional antennas. The final renewal term ofthe current lease will end on April 2012
at a rental rate of $1,587 month.
Verizon wishes to amend the current lease to provide for tower rental through 2027.
The rent structure will be as follows:
May 1, 2012 - April 30, 2017: $1,825 per month
May 1, 2017 - April 30, 2022: $2,099 per month
May 1, 2022 - April 30, 2027: $2,414 per month
The City and Verizon both retain the right to cancel the Agreement by giving the other
party six months notice.
RECOMMENDATION
Staff recommends approval of the lease amendment. A simple majority is required for
approval.
G:\Admin\lH\Cell Phone TowersWerizonWerizon amendment #2 staff report.doc
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
SITE NAME: MINe DOVETAIL
AMENDMENT NO.2 TO WATER TOWER ANTENNAE AGREEMENT
This AMENDMENT NO.2 TO WATER TOWER ANTENNAE AGREEMENT
("Amendment") is made this day of , 200_ by and between the
City of Chanhassen ("City") and Verizon Wireless (V A W) LLC d/b/a Verizon Wireless
("Communications Company"), with its principal offices located at One Verizon Way, Mail Stop
4A WlOO, Basking Ridge, New Jersey, 07920, with reference to the facts set forth in the Recitals
below:
RECITALS
A. City and Communications Company, or their predecessors in interest, are parties
to a Water Tower Antennae Agreement dated June 25, 1997 as previously amended by a First
Amendment dated February 11, 2005 (collectively the "Agreement"), whereby City has leased a
portion of City's Property (as defined in the Agreement) to Communications Company as
situated substantially as shown on Exhibits B and B-1 of the Agreement.
B. City and Communications Company desire to amend the Agreement to (i) provide
for extension of the Agreement with modified terms, (ii) modify the assignment provision, and
(iii) modify the insurance provision.
AGREEMENT
NOW, THEREFORE, in consideration of the facts contained in the Recitals above, the
mutual covenants and conditions below, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. ADDITIONAL EXTENSIONS. Commencing on May 1,2012, the Agreement shall be
extended for one (1) additional five (5) year extension term at a monthly rental of One Thousand
Eight Hundred Twenty-five and 00/100 Dollars ($1,825.00) to be paid on or before the first day
of the month. Thereafter, the Agreement shall automatically be extended for two (2) additional
five (5) year terms unless Communications Company or the City terminates it at the end of the
then current term by giving the other party written notice of the intent to terminate at least six
(6) months prior to the end of the then current term. The initial term and all extensions shall be
collectively referred to herein as the "Term". The monthly rental for the five:-year extension
from May 1,2017 through April 30, 2022 shall be $2,099.00 and the monthly
rental for the five-year extension from May 1,2022 through April 30, 2027 shall be $2,414.00.
2. ASSIGNMENT. Paragraph 21(f) of the Agreement is hereby deleted in its
entirety and replaced with the following:
This Agreement may be sold, assigned or transferred by the
Communications Company without any approval or consent of the City to the
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Communication Company's principal, affiliates, subsidiaries of its principal or to
any entity which acquires all or substantially all of Communication Company's
assets in the market defined by the Federal Communications Commission in
which the Property is located by reason of a merger, acquisition or other business
reorganization. As to other parties, this Agreement may not be sold, assigned or
transferred without the written consent of the City, which such consent will not be
unreasonably withheld, delayed or conditioned. No change of stock ownership,
partnership interest or control of Communication Company or transfer upon
partnership or corporate dissolution of Communication Company shall constitute
an assignment hereunder.
3. INSURANCE. Paragraph 17 of the Agreement is hereby deleted in its entirety
and replaced with the following:
a. The Parties hereby waive and release any and all rights of action
for negligence against the other which may hereafter arise on account of damage
to the Premises or to the Property, resulting from any fire, or other casualty of the
kind covered by standard fire insurance policies with extended coverage,
regardless of whether or not, or in what amounts, such insurance is now or
hereafter carried by the Parties, or either of them. These waivers and releases shall
apply between the Parties and they shall also apply to any claims under or through
either Party as a result of any asserted right of subrogation. All such policies of
insurance obtained by either Party concerning the Premises or the Property shall
waive the insurer's right of subrogation against the other Party.
b. City and Communications Company each agree that at its own cost
and expense, each will maintain commercial general liability insurance with limits
not less than $1,000,000 for injury to or death of one or more persons in anyone
occurrence and $500,000 for damage or destruction to property in anyone
occurrence. City and Communications Company each agree that it will include
the other Party as an additional insured.
4. RATIFICATION OF THE AGREEMENT. Except as specifically modified by
this Amendment, the parties agree that all of the terms and conditions of the Agreement are in
full force and effect and remain unmodified, and the parties hereby ratify and reaffirm the terms
and conditions of the Agreement and agree to perform and comply with the same. In the event
of a conflict between any term or provision of the Agreement and this Amendment, the terms
and provisions of this Amendment shall control. In addition, except as otherwise stated in this
Amendment, all initially capitalized terms will have the same respective defined meaning stated
in the Agreement. All captions are for reference purposes only and shall not be used in the
construction or interpretation of this Amendment.
Signatures on following page
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IN WITNESS WHEREOF, City and Communications Company have caused this
Amendment to be executed by each party's duly authorized representative effective as of the date
written below.
City:
Communications Company:
City of Chanhassen, a municipal corporation
Verizon Wireless (VA W) LLC
d/b/a Verizon Wireless
By:
Name:
Its:
By:
Beth Ann Drohan
Its: Midwest Area Vice President-Network
By:
Name:
Its:
Date:
Date:
Acknowledgments on following page
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City Acknowledgment
STATE OF MINNESOTA )
) SS.
COUNTY OF CARVER )
This instrument was acknowledged before me on , 200_, by
and , the Mayor and the City Manager of the
City of Chanhassen, a Minnesota municipal corporation, on behalf of the City.
Signature of Person Taking Acknowledgment
Communications Company Acknowledgment
STATE OF ll..LINOIS )
) SS.
COUNTY OF COOK )
On this day of , 200_, before me, the undersigned, a
Notary Public in and for the State of Illinois, duly commissioned and sworn, personally appeared
Beth Ann Drohan, to me known to be the Midwest Area Vice President - Network of Verizon
Wireless (V A W) LLCdlb/a Verizon Wireless, that executed the foregoing instrument, and
acknowledged said instrument to be the free and voluntary act and deed of Verizon Wireless
(VA W) LLC d/b/a Verizon Wireless, for the uses and purposes therein mentioned, and on oath
stated that she is authorized to execute the said instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
day and year first above written.
Print or Type Name:
Notary Public in and for the State of Illinois
My appointment expires:
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