Item 3.6 Communications Site Lease Agreement - Water Tower No. 1
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Administrator/Finance Director Flaherty June 10, 2024
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Attorney Kendall 3.6 – Lease Amendment
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X Is a strong organization that is committed to leading the community through innovative communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council approve an amendment to a site lease agreement.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
In September 2005, the City entered into a Site Lease Agreement for communications equipment to be installed upon Water
Tower #1. The lease was entered into with Nextel, which through numerous corporate acquisitions and changes, is now with T-
Mobile. The lease commenced in March 2006 and provides for monthly lease payments payable to the City. The expiration of
the lease will be in March 2026, and the City was approached with an opportunity to amend the lease before the expiration.
The amendment will commence at the expiration of the current lease (March 2026) and will be extended up to four additional
and successive five-year terms. The amendment also includes a new monthly rent amount, which will continue to increase on
each anniversary of the amendment by an annual amount of 4.00%. The amendment also includes additional language for
termination to be consistent with other communication site lease agreements in place for Water Towers #1 and #3. All other
terms and conditions in the original agreement will remain in force and effect.
The amendment has been reviewed by the City Attorney’s office who has provided an opinion to proceed with consideration of
approval by the City Council.
The Administrative Subcommittee was presented with this information at their June 5, 2024, meeting and provided
direction for City Council consideration of approval.
SUPPORTING DOCUMENTS ATTACHED:
• First Amendment to Communications Site Lease Agreement
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve the First Amendment to Communications Site Lease Agreement between the City of Otsego and
Sprint Spectrum Realty Company, LLC (T-Mobile).
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 601 – Water Utility
Yes, revenues for site lease agreements are budgeted for
annually within this fund.
1
Sprint Site ID: MS72XC004/A1O0164A
Sprint Lease ID: 1546329
FIRST AMENDMENT TO COMMUNICATIONS SITE LEASE AGREEMENT (WATER TANK)
This First Amendment to Communications Site Lease Agreement (Water Tank) (the “First
Amendment”) is effective as of the last signature below (the “Effective Date”), by and between
the City of Otsego, a Minnesota municipal corporation (“Landlord”), and Sprint Spectrum Realty
Company, LLC (formerly a limited partnership), a Delaware limited liability company, successor
in interest to Sprint Spectrum L.P. (“Tenant” , previously referred to as “Nextel”) (each a “Party”,
or collectively, the “Parties”).
Landlord and Tenant (or their predecessors-in-interest) entered into that certain
Communications Site Lease Agreement (Water Tank) dated September 14, 2005, (“Lease”)
regarding the leased premises (“Premises”) located at 15966 70th Street NE, Otsego, MN 55330
(the “Property”).
1.At the expiration of the Lease, the term of the Lease will automatically be extended for
four (4) additional and successive five (5) year terms, each included as a Renewal Term
provided that Tenant may elect not to renew by providing Landlord at least thirty (30)
days' notice prior to the expiration of the then current Renewal Term.
2.At the commencement of the first Renewal Term provided for in this First Amendment,
Tenant shall pay Landlord Three Thousand Two Hundred Eighty-Six and 68/100 Dollars
($3286.68) per month as Rent, partial calendar month to be prorated in advance, by the
fifth (5th) day of each calendar month. Thereafter, Rent shall continue to increase on each
anniversary of the Term Commencement Date (as defined in the Lease) by an amount
equal to four percent (4%) of the Rent then in effect for the previous year.
3.Notwithstanding anything to the contrary in the Lease and as of the Effective Date of the
First Amendment, Landlord shall be responsible for maintaining all portions of the
Property in good order and condition, including without limitation, plumbing, elevators,
the roof and support structure, landscaping and common areas, as applicable.
4.Section 10 of the Lease is hereby amended to read as follows:
10.Termination. This Agreement may be terminated without further liability on thirty
(30)days prior written notice as follows: (i) by either party upon a default of any covenant
or term hereof by the other party, which default is not cured within sixty (60) days of
receipt of written notice of default, except that this Agreement shall not be terminated if
the default cannot reasonably be cured within such sixty (60) day period and the
defaulting party has commenced to cure the default within such sixty (60) day period and
diligently pursues the cure to completion; provided that the grace period for any
monetary default is ten (10) days from receipt of written notice; or (ii) by Tenant if it does
not obtain or maintain any license, permit or other approval necessary for the
TMO Signatory Level: L07/SL07
NLG-96473
2
Sprint Site ID: MS72XC004/A1O0164A
Sprint Lease ID: 1546329
construction and operation of the Tenant Facilities; or (iii) by Tenant if Tenant is unable
to occupy and utilize the Premises due to an action of the Federal Communications
Commission ("FCC"), including without limitation, a take back of channels or change in
frequencies; or (iv) by Tenant if any environmental report for the Property reveals the
presence of any Hazardous Material after the Term Commencement Date; or (v) by
Tenant if Tenant determines that the Premises are not appropriate for its operations for
technological reasons, including, without limitation, signal interference; or (vi) by Tenant
if the Landlord fails to deliver to Tenant an executed memorandum of agreement or non-
disturbance and attornment agreement pursuant to Paragraphs 19 (g) and (h) below; or
(vii) by Landlord upon ninety (90) days written notice if the Landlord reasonably
determines that the Tenant has failed to comply with applicable ordinances, or state or
federal law, or any conditions attached to Government Approvals granted thereunder,
after a public hearing before the Landlord’s Council; or (viii) by Landlord and/or Tenant if
there is an interference problem with the Landlord’s Communication Systems that cannot
be corrected; or (ix) upon one hundred eighty (180) days written notice after the Initial
Term by Landlord if its Council decides to sell or redevelop the Property and/or
discontinue use of the Property for public or governmental purposes in a manner that is
inconsistent, in Landlord’s sole opinion, with Tenant’s continued use of Tenant’s
Communication Facility.
5.All notices, requests, demands and other communications shall be in writing and shall be
deemed to have been delivered upon receipt or refusal to accept delivery, and are
effective only when deposited into the U.S. certified mail, return receipt requested, or
when sent via a nationally recognized courier to the addresses set forth below. Landlord
or Tenant may from time to time designate any other address for this purpose by
providing written notice to the other Party.
If to Tenant:
T-Mobile USA, Inc.
12920 SE 38th Street
Bellevue, WA 98006
Attn: Lease Compliance /
MS72XC004/A1O0164A
If to Landlord:
City of Otsego
8899 Nashua Ave NE
Otsego, MN 55330
Attn: City Clerk
6.Tenant and Landlord will reasonably cooperate with each other's requests to approve
permit applications and other documents related to the Property.
7.Landlord will execute a Memorandum of Agreement at Tenant's request. If the Property
is encumbered by a deed, mortgage or other security interest, Landlord will also execute
a subordination, non-disturbance and attornment agreement.
TMO Signatory Level: L07/SL07
NLG-96473
3
Sprint Site ID: MS72XC004/A1O0164A
Sprint Lease ID: 1546329
8.Any charges payable under the Lease other than Rent shall be billed by Landlord to
Tenant within twelve (12) months from the date in which the charges were incurred or
due; otherwise, the same shall be deemed time-barred and be forever waived and
released by Landlord.
9.Except as expressly set forth in this First Amendment, the Lease otherwise is unmodified.
To the extent any provision contained in this First Amendment conflicts with the terms of
the Lease, the terms and provisions of this First Amendment shall control. Each reference
in the Lease to itself shall be deemed also to refer to this First Amendment.
10.This First Amendment may be executed in duplicate counterparts, each of which will be
deemed an original. Signed electronic, scanned, or facsimile copies of this First
Amendment will legally bind the Parties to the same extent as originals.
11.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 First Amendment.
Landlord represents and warrants to Tenant that the consent or approval of a third party
has either been obtained or is not required with respect to the execution of this First
Amendment. If Landlord is represented by any property manager, broker or any other
leasing agent (“Agent”), then (a) Landlord is solely is responsible for all commission, fees
or other payment to Agent and (b) Landlord shall not impose any fees on Tenant to
compensate or reimburse Landlord for the use of Agent, including any such commissions,
fees or other payments arising from negotiating or entering into this First Amendment or
any future amendment.
12.This First Amendment will be binding on and inure to the benefit of the Parties herein,
their heirs, executors, administrators, successors-in-interest and assigns.
IN WITNESS, the Parties execute this First Amendment as of the Effective Date.
Landlord:
City of Otsego, a Minnesota municipal
corporation
By:
Print Name:
Title:
Date:
Tenant:
Sprint Spectrum Realty Company, LLC, a
Delaware limited liability company
By:
Print Name: __________________________
Title: ________________________________
Date:
TMO Signatory Level: L07/SL07
NLG-96473