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1f. Water Tower Antennae Agreement Amendment #1 10° MEMORANDUM TO: Todd Gerhardt, City Manager CITY FROM: Laurie Hokkanen, Assistant City Manager CHANHASSEN 7700 Market Boulevard DATE: August 9, 2010 0 PO Box 147 Chanhassen, MN 55317 RE: Cell Tower Lease Agreement Amendment with Clear Wireless, LLC for Downtown Water Tower Administration Phone: 952.227.1100 PROPOSED MOTION Fax: 952.227.1110 Building Inspections The Chanhassen City Council approves Amendment #1 to Water Tower Antennae Phone: 952.227.1180 Agreement with Nextel West Corp. for the purposes of installing ClearWire Fax: 952.227.1190 • WiMax antennae on the Downtown Water Tower. Engineering BACKGROUND Phone: 952.227.1160 Fax: 952.227.1170 The City Council recently approved a similar version of this Amendment that did Finance not specifically name Clearwire as the subleasor. Clearwire and Sprint have Phone: 952.227.1140 requested that the City Council approve this version instead. No other provisions Fax: 952.227.1110 have changed. Park &Recreation Clear Wireless LLC, www.clearwire.com, intends to install a WiMax internet Phone: 952.227.1120 antenna on the downtown water tower located at 500 West 76 Street. The tower Fax: 952227.1110 currently has cellular and other communications equipment located on it. Recreation Center Clearwire has entered into a sublease agreement with Sprint/Nextel to replace 2310 Coulter Boulevard some of their existing antennas with Clearwire equipment. Clearwire is partially Phone: 952.227.1400 owned by Sprint/Nextel. Clearwire already leases space from the City at the Lake Fax: 952.227.1404 Lucy and Murray Hill locations. They intend to provide phone and internet service in Chanhassen. Planning & Natural Resources The key points of the agreement are as follows: Phone: 952.227.1130 Fax: 952.227.1110 • The term of the lease is not changed by the amendment. • The monthly rent will be increased by $750, beginning by May, 2012. Public Works • Any expenses incurred by the City due to the antennae will be reimbursed 1591 Park Road by Clearwire. Phone: 52227.13100 • Th agreement may be terminated by the City if rent is not paid 15 days Fax: 952.227.1310 • g Y Y Y s � p Y after written notice, if the water tower no longer becomes needed, or if a Senior Center higher priority user (such as a City or public safety use) is needed. Phone: 952.227.1125 • Clearwire will also be responsible for review and inspection fees, which Fax: 952.227.1110 will be paid in advance and conducted by KLM Engineering. • The site plans are attached but will be approved by KLM Engineering, the • Web Site www.ci.chanhassen.mn.us Building Dept. and Planning Dept. prior to installation. G: \Admin \LH\Cell Phone Towers \Clearwire \Clearwire Amendment - downtown water tower staff report.docx Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow RECOMMENDATION Staff recommends that the Chanhassen City Council approve the attached Amendment #1 to Water Tower Antennae Agreement with Nextel West Corp. for the purposes of installing a WiMax antenna on the downtown water tower. This action requires a majority of the City Council for approval. ATTACHMENTS 1. Amendment #1 to Water Tower Antennae Agreement G:\Admin \LH\Cell Phone Towers \Clearwire \Clearwire Amendment - downtown water tower staff report.docx Site Name: Chanhassen Site ID #: MS73XC679 AMENDMENT NO. 1 TO WATER TOWER ANTENNAE AGREEMENT This Amendment No. 1 to WATER TOWER ANTENNAE AGREEMENT ( "Amendment "), effective as of the date last signed below ( "Effective Date "), amends a certain Water Tower Antennae Agreement between Nextel West Corp., a Delaware corporation d/b /a Nextel Communications ( "COMMUNICATIONS COMPANY" or "Tenant ") and City of Chanhassen, Minnesota, a Minnesota municipal corporation ( "City" or "Landlord "), dated November 24 1997, (the "Agreement "). BACKGROUND WHERAS, Tenant desires to modify Exhibit B to the Agreement and its Equipment on the Water Tower to allow its affiliate, Clearwire Wireless, a Nevada limited liability company, to install the advanced wireless service antennas and equipment consisting of those drawings labeled T -1, C -1. C -2, C -3, C-4, A -1, A -1.5, A -2, A -3, E -1, E- 2, E -3, SP -1, SP- 2 (referenced collectively as Exhibit B -1) (herein the "Clearwire Equipment ") copies of which are attached and made a part herof to be included as part of Tenant's communications service system facility as more fully shown on Exhibit B -1 hereto within Tenant's Premises at the Water Tower at 500 W. 76` St., Chanhassan, MN 55317 for the deployment of advanced wireless services, which Clearwire Equipment shall be hereafter considered a part of Tenant's Antennae and Equipment at the Premises. WHEREAS, Tenant and Landlord therefore desire to modify the provisions of the Agreement as provided below. AGREEMENT For good and valuable consideration the receipt and sufficiency of which is acknowledged, Landlord and Tenant agree as follows: 1. Modification to the Antennae and Equipment. Pursuant to Section 4A and Section 5D of the Agreement, Exhibit B of the Agreement is amended to include the revised Exhibit B -1, consisting of lease drawings labeled T -1, C -1. C -2, C -3, C-4, A -1, A -1.5, A -2, A -3, E -1, E -2, E -3, SP -1, SP- 2, a copy of which is attached and made a part hereof. Tenant shall verify that the additions, alterations, modifications, or replacement of Tenant's Antennae and Equipment pursuant to Exhibit B -1 and this Amendment will not interfere with any equipment, signal, and/or operation of any existing equipment which is installed on the Water Tower and/or used by any other current tenant of Landlord existing on the Tower as of the Effective Date of this Amendment. The failure of Tenant to comply with such condition of this Amendment shall constitute a material breach of the Agreement as hereby amended. Upon full execution of this Amendment, Tenant is permitted to do all work necessary to prepare, maintain and alter the Premises to install, modify or otherwise relocate the Antennae and/or the Equipment, all as more fully described and contemplated in Exhibit B -1. 2. Assignment and Subletting. Section 21F of the Agreement is amended to include the following: "Notwithstanding anything to the contrary contained in this Agreement, Tenant has the right to sublease, sublicense (or otherwise transfer or allow the use of) all or any portion of the Premises or assign its rights under this Agreement to Clearwire Wireless, a Nevada limited liability company." 3. Expiration or Termination of Sublease. If Tenant's sublessee or sublicensee (i) does not install, construct or add equipment to the Water Tower, or (ii) installs equipment, but later removes the equipment, then upon ninety (90) days written notice to the City, Tenant may terminate this Amendment. After terminating the Amendment, the terms and conditions of the Agreement as they existed immediately prior to the Effective Date of this Amendment shall be deemed ratified, and shall continue in full force and effect. Rent shall revert to the amount in effect immediately prior to the Effective Date of this Amendment, plus any rental increases, including annual escalators or rent increases due to other site modifications made by Tenant, which occurred during the period of time between the Effective Date of this Amendment and the termination date of this Amendment. 4. Modification to Rent. In consideration for the revisions contemplated by this Amendment, effective upon the earlier of (i) the first day of the month following the date the facilities are modified or (ii) May 1, 2012, the monthly rent will be increased by $750.00. 5. Tenant's Notice Address. Tenant's notice address in Section 21G of the Agreement in its hereby deleted in its entirety and replaced with the following: Sprint/Nextel Property Services Mailstop KSOPHT0101 -Z2650 6391 Sprint Parkway Overland Park, Kansas 66251 -2650 With a mandatory copy to: Sprint/Nextel Law Department Mailstop KSOPHT0101 -Z2020 6391 Sprint Parkway Overland Park, Kansas 66251 -2020 Attn.: Real Estate Attorney 6. General Terms and Conditions. (a) All capitalized terms used in this Amendment, unless otherwise defined herein, will have the same meaning as the terms contained in the Agreement. (b) In case of any inconsistencies between the terms and conditions contained in the Agreement and the terms and conditions contained in this Amendment, the terms and conditions herein will control. Except as set forth below, all provisions of the Agreement are ratified and remain unchanged and in full force and effect. (c) This Amendment may be executed in duplicate counterparts, each of which will be deemed an original. (d) Each of the parties represents and warrants that it has the right, power, legal capacity and authority to enter into and perform its respective obligations under this Amendment. ** *SIGNATURES ON FOLLOWING PAGE * ** The parties have executed this Amendment as of the Effective Date. 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