Item 3.7 Assignment of Agreement between the City and Nextera Wireless
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Administrator/Finance Director Flaherty June 24, 2024
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Attorney Kendall
Utility Operations Manager Neidermeier
3.7 – Lease Assignment
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 May 2017, the City entered into a Water Tower Lease Agreement with Nextera Wireless for communications equipment to be
installed upon Water Tower #3. City staff received a request for consent to assignment of the agreement from Nextera Wireless
to MN FWA Buyer, LLC, a subsidiary of Earthlink, LLC, who has agreed to purchase Nextera Wireless.
Utility Operations Manager Neidermeier has been consulted and has provided assurance that there are no concerns with the
assignment from an operational standpoint and that Nextera has been a good tenant. City Attorney Kendall has reviewed the
requested assignment and has provided his recommendation for the City Council to proceed with consideration of assignment.
Pending approval, the assignment document will be executed by the Mayor and City Clerk.
SUPPORTING DOCUMENTS ATTACHED:
• Consent to Assignment of Agreement
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve the Consent to Assignment of Agreement between the City of Otsego and Nextera Wireless.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A N/A
ADDRESS 5909 Baker Rd Ste. 590 Minnetonka, MN 55345
PHONE 952.564.6900 FAX 952.564.6902
P
H
O
N
E
2
1
8
.
8
2
4
.
6
4
0
0
F
A
X
2
1
8
.
8
2
4
.
6
4
0
1
P
H
O
N
E
2
1
8
.
8
2
4
.
6
4
0
0
F
A
X
2
1
June 17, 2024
Dear Valued Vendor,
After more than 15 years of providing phone, data, and internet solutions to Minnesota
and Wisconsin, we are pleased to advise you that Nextera Wireless, LLC (“Nextera”) has
agreed to sell substantially all of its assets to MN FWA Buyer, LLC, a subsidiary of
EarthLink, LLC (“EarthLink”).
EarthLink is a leading internet service provider delivering access to more homes and small
businesses than any other ISP. Additional information about EarthLink can be found on
its website, located at: https://www.earthlink.net/. Similar to Nextera, EarthLink values
its relationships with its customers, suppliers, vendors, landlords, and the community.
We anticipate that the transaction will close around July 31, 2024.
Enclosed is a copy of a Consent to Assignment. I kindly request that you return a signed
copy to me no later than June 28th, 2024 to the following email: ghoveland@nextera.net.
If you have any questions, please call me at 952-564-6908.
Gina Hoveland
General Manager
CONSENT TO ASSIGNMENT OF AGREEMENT
Pursuant to that certain Asset Purchase Agreement, dated May 31, 2024, by and among
Nextera Wireless, LLC (the “Assignor”), MN FWA Buyer, LLC, a Delaware limited liability
company (the “Assignee”) and the other parties thereto, the Assignor is proposing to sell all or
substantially all of its assets (the “Transaction”) to the Assignee, and such assets include the
contract(s) listed on Exhibit A hereto (collectively, the “Contract(s)”). The undersigned hereby
consents to the assignment of the Contract(s) to the fullest extent required by the Contract(s), and
hereby releases the Assignor from all obligations and liabilities under the Contract(s) that first arise,
accrue or are incurred after the effective date hereof. Additionally, the undersigned acknowledges
and agrees that the Contract(s) is (are) in full force and effect and no party thereunder is in breach
or default of the terms thereof, and waives any further advance notice requirement or any right to
cancel, terminate or otherwise amend, vary or modify the terms of the Contract(s), to the extent that
such right arises in connection with, or results from, the Transaction. This consent will be effective
as of immediately prior to the consummation of the Transaction.
CITY OF OTSEGO
By:
Name:
Title:
Exhibit A
Contract(s)
Water Tower Lease Agreement, dated May 8, 2017, by and between the City of Otsego and Nextera
Wireless.
Amendment to Water Tower Lease Agreement, dated November 20, 2018, by and between the City of
Otsego and Nextera Wireless.