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HomeMy WebLinkAbout005-97 - Crown Castle - Contract Option and Lease Agreement for Telecommunications SiteOPTION AND LEASE AGREEMENT FOR 'TELECOMaVI[ MCATIONS SITE THIS OPTION AND LEASE AGREEMENT ("Agreement") is, entered into as of the day of , 1997, by and between City of Port Orchard, a Washington Municipal Corporation ("Landlord"), and GTE Mobilnet Incorporated, a Delaware corporation (".Tenant"). Landlord and Tenant agree as follows: This Agreement provides: (1) an Option to lease certain property in favor of the Tenant, and (2) terms and conditions of the Lease resulting from the exercise of the Option. Paragraphs 2 through 21 shall apply without limitation during the term of the Lease in the event the Option is exercised. During the Option Period the following paragraphs only shall be operative: t ("Option'.'), 6 ("Access and Utility Easements"), 7 ("Insurance"), 8 ("Termination"), 10 ("Survey"), 13 ("Assignment/ Subletting"), 14 ("Consent and Approvals"), 15 ("Debt Security"), 16 ("Environmental Laws"), 17 ("Notice"), 18 ("Non -Disclosure"), 19 ("Indemnity"), 20 ("Memorandum of Agreement/SNDA") and 21 ("Miscellaneous"). 1. OPTION: In consideration of the receipt of Five Hundred Dollars ($500.00) ("Option Money"), and subject to the conditions set forth herein, Landlord hereby grants to Tenant an option ("Option") to lease a portion of real.. property owned by Landlord, which property is located at SW Clifton Road, Port Orchard, Washington. The Tax Lot Number is: 342401-3-015-20-04-000. The property subject to this Option ("Lease Premises") is described and depicted on Exhibit "A", which is attached hereto and incorporated into this Agreement. The Leased Premises constitute a portion of real property owned by the Landlord ("Landlord's Property") which is described and depicted in Exhibit "B" , attached hereto and incorporated into this Agreement. The Option is for the purpose of allowing the Tenant a suitable period of time to determine the feasibility of constructing and operating a telecommunications facility on the Leased Premises. The Option shall exist for a period of six (6) months ("Option Period") commencing on the Date of Execution of this Agreement. The Date of Execution is deemed to be the date upon which the last party to this Agreement has signed it. The Tenant has the right to extend the Option Period for six (6) months by paying Five Hundred Dollars ($500.00) to Landlord ("Additional Option Money") prior to expiration of .the Option Period. During the Option Period, Tenant and its contractors shall have the right of access to enter upon the Landlord's Property and Leased Premises to conduct, at Tenant's expense, such surveys, tests and investigations as are necessary to enable Tenant to determine whether it desires to exercise the Option. If the Tenant does not exercise the Option, any money paid to Landlord shall be retained by the Landlord in full accord and satisfaction of all obligations of the Tenant hereunder and neither party shall have any further obligation to the other under the Agreement. In addition, the Lease as provided for hereunder shall be considered to be of no force and effect without further action by either party. - 7/30/97 WA217 Pt. Orchard 1/14 2. TERM OF LEASE: a) Initial Term. In the event Tenant exercises the Option, the Initial Term of the resulting Lease shall be for a period of five (5) years, commencing upon written notification by Tenant to Landlord ("Commencement Date"). Subject to the automatic renewal provisions in Subparagraph 2(b) below, the Lease shall terminate one -day before the fifth (5t') annual anniversary.of the Commencement Date ("Initial Term"). Tenant's obligation to pay Rent shall begin on the Commencement Date. b) Extended Terms. Tenant shall have the right to extend the Initial Term for five (5) additional periods of five (5) years each ("Extended Terms") on the same terms and conditions as set forth herein, except for an adjustment in Rent. Extensions shall be automatic unless Tenant gives written notice to Landlord of its intent not to extend the Lease. Notice shall be provided not less than thirty (30) days prior to the expiration of the then current Term. C) Holding Over. If, after the end of the last Extended Term, Tenant remains in possession of the Leased Premises without executing a new Lease, the Tenant shall become a Tenant on a month -to -month basis on the same terms and conditions of this Lease. Tenant shall pay monthly Rent in- the amount which . was payable during the immediately preceding month. 3. RENT: During the Initial Term Tenant .shall pay to Landlord an annual sum of Twelve Thousand Dollars ($12,000.00) ("Rent"), in equal monthly installments of One Thousand Dollars ($1,000.00) on, the first day of each month at the address designated in Paragraph 18. If the Commencement Date is a day other than the first day of a month,. the Rent for that month shall be prorated.. Upon the anniversary of the commencement date, the rent shall increase by three (3) per cent over the annual rent of the previous year. Rent for each Extended Term shall be payable in equal monthly installments in advance on the first day of each month. With each monthly installment of rent, the Tenant shall include the Leae Hold Tax, as required by the Revised Code of Washinton State, 82.29A. The enclosed Lease Hold Tax shall be calculated based upon the enclosed rent amount and be in addition to the rent. 4. TITLE AND QUIET POSSESSION: Landlord represents, warrants and covenants to Tenant as follows: (1) Landlord is seized with good, marketable, and fee simple title to the Leased Premises and to any areas of Landlord's Property containing easements or rights of access as provided for in Paragraph 6, (2) any encumbrances that may exist on the Landlord's Property or the Leased PremisL.3 will not interfere with the Tenant's intended use of the Leased Premises, (3) Tenant is seized and possessed with a valid 7/30/97 WA217 Pt. Orchard s 2/14 -^.. leasehold estate in and to the Leased Premises and that Tenant shall have the quiet and peaceful enjoyment of the Leased Premises at all times during this Lease, and (5) Landlord will at all times during- the term of this Lease defend title to the Leased Premises against all claims. 5. USE: The Leased_ Premises will be used by the Tenant for the, purpose of operating a personal, communications service ("PCS") facility. In order to enable the Tenant to do this, Tenant may construct improvements and install equipment reasonably required by Tenant for this use. Such improvements and equipment may include, but are not limited to a telecommunications structure, tower, or antenna(e), a building(s) to house equipment, electrical meters, electrical generators, coaxial transmission lines, transmitters, receivers, accessory devices, a chain -link fence (to enclose all improvements), and all other equipment, supplies or materials relating to the foregoing. All of the above equipment, materials and structures shall collectively be referred to as "Communications Equipment Tenant, or its contractors, assignee(s) or subtenant(s), may replace, repair, modify and remove the Communications Equipment as necessary to operate the Leased Premises. 6. ACCESS AND UTILITY EASEMENTS: Landlord agrees to grant Tenant and/or Tenant's designee (including Tenant's utility company) the rights of ingress and egress for vehicular and/or pedestrian access together with the right of access to install and maintain utility service to the Leased Premises over and upon Landlord's Property and any additional adjoining lands owned by. Landlord which are necessary to construct, operate and maintain the Leased Premises. The granting of such rights shall be at no additional charge to the Tenant. The routes of access for pedestrian/vehicular traffic and utility installation shall be of sufficient size to permit the Tenant to construct, operate, and maintain the Communications Equipment. Such rights shall be granted for the duration of the Lease. Tenant shall have the right, but not the obligation, to improve such access routes, subject to Landlord's approval which shall not be unreasonably withheld. At the request of Tenant, Landlord agrees to execute easement documents or other written instruments ("Easements") prepared at Tenant's expense and in a form recordable in the State of Washington which reflect the above rights. The Tenant may record such Easements at its expense. 7. INSURANCE: For the duration of this Agreement, Tenant shall maintain comprehensive general liability and property liability insurance with liability limits of not less than One Million ($1,000,000) for injury to or death of one or more persons in any one occurrence, and Five Hundred Thousand Dollars ($500,000) for damage to or destruction of property in any one occurrence. Landlord shall be named as an additional insured, as its interests may appear. Landlord reserves the right to request a review of Tenant's insurance coverage for the Leased Premises every five (5) years, and to request, at Landlord's discretion, that Tenant increase it's insurance coverage for the Leased Premises; in order 7/30/97 WA217 Pt. Orchard 3 14 6, to keep current with the increased value of -Landlord's property and/or Tenant's equipment. 8. TEPMUNATION: This Agreement may be terminated as follows: a) Fifteen (15) days after receipt of written notice from Landlord if Tenant fails to cure a default for the payment of Rent; b) Thirty (30) days after receipt of written notice by either party if the other party defaults and fails to cure such default within that thirty (30) day period, or after a longer period in order to diligently complete a cure, as long as the cure was commenced within the thirty (30) day period;. c) Thirty (30) days after receipt of Tenant's written notice to Landlord that a governmental approval, permit or license which is necessary for the construction and/or operation of the Communications Equipment cannot be obtained, or is revoked, denied, or overturned or, if Tenant in its sole discretion, determines that the cost of obtaining or retaining such goverriment approval, permit or license is cost prohibitive or commercially unreasonable; d) Thirty (30) days after receipt of written notice to Landlord if Tenant in its sole discretion determines at any time that it desires to discontinue utilization of the Leased Premises for any reason whatsoever; e) Immediately upon written notice from Tenant if the Communications Equipment are destroyed or damaged to such an extent that its ability to continue operation is materially and adversely affected. All rights and obligations of the parties shall cease as of the date of such damage or destruction. Tenant shall be entitled to a pro rata reimbursement of any prepaid Rent. Notwithstanding the above, Tenant may elect to continue in possession in which case all Rent shall abate until the Communications Equipment are restored to the condition immediately prior to such damage or destruction; f) Immediately upon condemnation of all or a portion of the Landlord's Property or the Leased Premises sufficient in Tenant's determination to render the Leased Premises unsuitable for Tenant's continued use. g) Upon thirty (30) days written notice to Landlord, if it is determined that the Leased Premises or Landlord's Property is/are contaminated -with Hazardous Substances, as defined in Paragraph 16, such , that the presence of the contamination materially and adversely affects Tenant's ability to continue to operate its Communications Equipment. Upon termination, neither party shall have any further obligation to the other; PROVIDED, HOWEVER, that if Tenant terminates this Agreement pursuant to Subparagraphs © or (d) more than ninety (90) days from the date Tenant. exercises its Option, Tenant shall pay 7/30/97 t Landlord a lump sum payment equal to six (6) months' Rent. Tenant shall remove its Communications Equipment from the Leased Premises no later than One Hundred Eighty (180) days following the date of termination. Upon termination, Tenant agrees to restore the Leased Premises to its original condition, normal wear and tear excepted. 9. TAXES: Tenant shall pay annually within sixty (60) days of demand an amount equal to any increase in real estate taxes paid by Landlord but only to the extent any increase is _ attributable to improvements made by Tenant to the Leased Premises. Tenant shall not be responsible for any interest, penalty or late charges caused by Landlord's failure to pay in a timely manner. Tenant reserves the right, at its own cost, to contest the validity of any such increase attributable to Tenant's improvements on the Leased Premises. 10. SURVEY: A surveyed description of the Leased Premises shall be furnished by Tenant to Landlord at no cost either during the Option Period or subsequent to the Commencement Date. Such description shall be appended to this Agreement as Exhibit "A- I" and shall constitute the determinative description of the Leased Premises in lieu of any different description of the Leased Premises contained in Exhibit A. 11. NON-INTERFERENCE: Landlord will not grant a lease, license, or easement or transfer or convey any other interest in Landlord's Property upon which the Leased Premises are located or in any other property owned by Landlord contiguous to the Landlord's Property which would in any way adversely affect or interfere, ins Tenant's reasonable but sole discretion, with the operation of the Communications Equipment. 12. FIXTURES: Notwithstanding any contrary provision of law,, Landlord agrees that the Communications Equipment and any other improvements placed on the Leased Premises by the Tenant shall remain the personal property of the Tenant, shall not be considered to be affixed to the Landlord's Property and shall be removed by Tenant as provided herein. Tenant agrees to save Landlord harmless from claims or liens imposed upon the Leased Premises in connection with any alterations or improvements to the Leased Premises made by Tenant, its agents or its contractors. 13. ASSIGNMENT/SUBLETTING: Tenant may assign and sublet the Leased Premises without the prior consent of the Landlord to' any entity controlling, controlled by or under common control with the Tenant, to any party which acquires substantially all of the assets of the Tenant to any entity licensed by the FCC to operate a wireless communications business, or to any entity which acquires substantially all of the Tenant's assets in the Metropolitan Trading Area ("MTA") in which the facility is located, PROVIDED THAT, in all such instances such assignee assurres in full all of Tenant's obligations under this Agreement. Except as set forth above, Tenant may only 7/30/97 WA217 Pt. Orchard 5/14 -s� assign or sublet the Leased Premises with Landlord's prior written consent, which consent shall not be unreasonably withheld or delayed. 14. CONSENTS AND APPROVALS: Tenant shall, at its expense, apply for all governmental approvals and other permits and authorizations which are required for the construction and operation of the Communications Equipment. Landlord agrees to cooperate with Tenaut in all respects in connection with such efforts. Landlord agrees to sign any applications and registrations which require Landlord's signature. Tenant reserves the right to file appeals or protests from any adverse- decision of governmental bodies affecting Tenant's occupancy and use of the Leased Premises. Tenant reserves the right to challenge the validity of any ordinance, law or regulation affecting the Tenant's use or occupancy of the Leased Premises. Landlord, agrees to cooperate with Tenant in such efforts. 15. DEBT SECURITY: Tenant may, upon notice to Landlord, mortgage or convey this Agreement (together with all of the Tenant's rights, title and interest herein) by deed of trust or other instrument adequate for the purpose of securing a bona fide indebtedness, PROVIDED THAT, no such mortgage or conveyance nor any foreclosure thereof, nor any purchase thereunder, shall impair or abridge the rights of the Landlord. Landlord shall execute any consent to such mortgage or conveyance as may reasonably be required. 16. ENVIRONMENTAL LAWS: Landlord hereby makes the following representations and warranties to Tenant: a) Landlord has obtained all permits, licenses, or authorizations, if any, which are required under Environmental Laws, as defined below, with respect to the Landlord's Property, including the Leased Premises and to the best of its knowledge, is in compliance in all material respects with same. b) Landlord is not aware of, and has not received notice of, the presence of Hazardous Substances on the Landlord's Property, including the Leased Premises. c) There is not pending or threatened against Landlord, (and Landlord knows of no circumstances that might give rise to) any civil, criminal or administrative action, or claim relating in any wayto Environmental Laws with respect to the Landlord's Property, including the Leased Premises. As used herein the following terms shall have the following meanings: "Environmental Laws" shall mean all federal, state and local laws relating to pollution or protection of the environment. "Hazardous Substances" shall means any pollutant, contaminant, hazardous or dangerous waste, substance or material regulated or controlled pursuant to any Environmental Law. I 17. NOTICE: All notices hereunder must be in writing and shall be delivered by hand, by nationally overnight express delivery service; by U.S. registered or certified mail, return receipt requested, postage prepaid, or by facsimile to the addresses set forth below: TENANT: LANDLORD: GTE Mobilnet Incorporated City of Port Orchard 2821 Northup Way, Suite 201 216 Prospect Street Bellevue, WA 98004 Port Orchard, WA 98366 Attn.: Network Director Ann.: Larry Curles A copy for GTE shall also be sent to: GTE Mobilnet Incorporated, 245 Perimeter Center Parkway, 10 h Floor, Legal Department, Atlanta, GA 30346, Ann.: Legal Department/1.8 Attorney. Any notice or other communication mailed as provided above shall be deemed effectively given (a) on the date of delivery, if delivered by hand, or (b) on the date mailed, if sent by overnight express delivery or U.S. mail. 18. NON -DISCLOSURE: As a material pre -condition to Tenant entering into this Agreement, Landlord agrees not to disclose or otherwise disseminate the terms of this Agreement to any third party without the prior written consent of Tenant. 19. INDEMNITY: Landlord and Tenant each indemnifies the other against and holds the other harmless from any and all costs (including reasonable attorneys fees) and claims of liability or loss which arise under this Agreement. This indemnity does not apply to any claims arising from the sole negligence or intentional misconduct of the indemnified party. 20. MEMORANDUM OF AGREEMENT/SNDA: Landlord and Tenant agree, following the execution of this Agreement, to execute a short form of memorandum of this agreement suitable for recording in the State of Washington, a copy of which is attached hereto as Exhibit "C". Tenant, at its sole expense, shall have the right to record the.memorandum in the county where the Leased Premises are located. Landlord agrees to cooperate with Tenant in obtaining any executed subordination, non -disturbance and attornment agreement to the extent that such an agreement may be necessary. 21. MISCELLANEOUS: This Agreement and any attached Exhibits constitute the entire agreement between Landlord and Tenant. No prior written communication or oral representations shall be binding. It shall not be amended except in writing and signed by authorized representatives of both parties. The Agreement shall be binding upon and shall inure to the benefit of the parties and their heirs, executors, administrators, successors and assigns. This Agreement may be executed in any number of counterparts, 7/30/97 WA217 Pt. Orchard 7/14 Time is of the essence in this Agreement and each of its provisions. This Agreement shall be construed and governed in accordance with the laws of the State of Washington. If any provision is declared by a court of competent.jurisdiction to be invalid, or unenforceable, the remainder shall not be affected thereby, and shall be valid and enforceable to the fullest extent permitted by law. The venue for any litigation hereunder shall be Kitsap County, Washington. Each party represents to the other that it has full right and authority to enter into this Agreement. The prevailing party in any litigation arising hereunder shall be entitled to its reasonable attorneys fees and court costs, including appeals costs, if any. 22. COLOCATION: Tenant shall construct its Communications Monopole on the Leased Premisies to accommodate the placement of one additional antenna array on the tower, in addition to Tenant's own antenna array. Landlord and Tenant acknowledge that Landlord may negotiate to locate an additional user on Tenant's Monopole, provided, however, that such proposed additional user shall not be allowed to locate on Tenant's Monopole without the mutual consent of both Landlord and Tenant. The party that negotiated with the proposed additional user shall provide the otheer party, for its review and approval, the plans and specifications for the proposed additional user's antenna array and related equipment and the proposed agreements between such parties relating to the use of the Property and the premises by the proposes additional user. Within thirty (30) days of the receipt of such information, the reviewing party shall consent or object to the ` proposed additional user and the proposed additional user and the proposed .agreements. The proposed additional user shall pay not less than the current market rate for colocation and the use of Tenant's Monopole and the Property. Any rent negotiated by the Landlord shall accrue solely to the Landlord's account. Tenant shall be allowed to charge the additional user a one time fee of Twenty Thousand Dollars ($20,000.00) as contribution to Tenant for its startup costs of this installation. Said Twenty Thousand Dollars ($20,000.00) fee shall be for the sole account of the.Tenant. In addition to the above, Landlord shall be allowed to install an FM Antenna on the Tenant's Monopole so long as it does not interfere with Tenant's operation of the Communications Equipment. 7/30/97 WA217 Pt. Orchard 8/14 IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as 7/M/97 WA217 Pt. Orchard 4� 10/14 STATE OF WASHINGTON ) COUNTY OF i K-ap ) Personally appeared before me, the undersigned, a Notary Public in and for the State and County aforesaid, L 7t Lt -J .. (.�.� ,-t I i ,with whom I a m personally acquainted, (or proved to me on the basis of satisfactoryevidence), and who, u o4, acknowledged himself to be the Mt'���r__-_________of the hcUc;ka corporation, and that in such capacity he executed the $re ing instrument for -the purpose therein contained, by signing the name of the corporation. Witness my hand and seal of office this L day o�cr� 1, .19 . NOTARY PUBLIC My Commission Expires:-- -//'7 (NOTARIAL SEAL) STATE OF COUNTY OF Personally appeared before me, the undersigned, a Notary Public in and for the State and County aforesaid, Donald M. Fye, with whom I am personally acquainted, (or proved to me on the basis of satisfactory evidence), and who, upon oath, acknowledged themselves to be the AVP, Network Engineering and Construction of GTE Mobilnet Incorporated, a corporation, and that in such capacities they executed the foregoing instrument for the purpose therein contained, by signing the name of the corporation. 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