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Home My WebLink About7A, Zayo Site Lease Agreement� � � EN HLLLS ; � ; Request for Counci� Action i i Prepared By: Jill Hu�nacher Council Meeting Date: 7une 1, 2011 Community Development Director Zayo Site Lease Agreement Budgeted Amount: Actual Amouni: Funding Sourc�: NA NA NA Recommendation: Approve the Site Lease Agreement with Zayo Gronp, LLC, for an equipment cabinet at Cummings Park {�'ernwood) water tower. SuAnortin� Documents: 1. Memorandum dated June �, 20� ]. fro� Jill Hutzx�acher, Community Development DireCtor. 2. Site Lease Agreennent 3. �ystezn Plans � EN HILLS MEMORANDUM DATE: June 1, 2�11 TO: Hanarable Mayor and City Councilmembers FROM: Jill Hut.�nacher, Community Development Direcior'��' SUBJECT: Zayo Site Lease Agreement Back�round T-Mobile currently leases space from the City to operaie an equipment building at the Cummings 1'ark (Fernwood) water tower. T-Mobile curren�ly pays an annual lease rate of $19,096 for the 300-sq�are-foot equipment b�ilding and antenna space on the water tower. Zayo Group, LLC is working with T-�Mobile to upgrade their T1 Iine with fiber-optic connections. The technologica.I upgrade is related to the 4G capacity that most wireless providers are building. Although the fiber-optic �quipment could be installed within the T-Mobile building, Zayo Group hopes to seli services to additianal vvireless provid�rs and has requested a Iease of twelve square �eet outside of the exist�ng T-Mobile bi.ulding to accomYnodate an �quiprnent cabinei. Zayo Group has not requested any space on the water iower. The ner�v equipment is entirely �ard- wired and does not include any wireless components. Zayo Group is upgrading facilities throughout the metropoiitan area. Zayo Group suggested a lease rate that was proportianal a� a square foot basis to the T-Mobile lease. Siaff contacted several cities to inquire about �ease rates. Many cities are char�ging no or minimal rents for the Zayo upgrades. Of the cities contacted, tk�e highest lease rate vvas five thousand dollars annually. Given that there is a precedent for that lease rate, and given the limited space at the Cuzxan�ings Pa�rk water tower praperty, staff negptiate� an initial lease rate of five thousand dollars azazxua�ly for the twelve square feet xequested by Zaya Group. Site Lease A�reeinent Following are key terms of the Site Lease Agreemen� + The initia� annual rent is �ve thousand dollars, with annual adjustments of three percezat. • The lease term be�ins on the earlier of tk�e date Zayo Grou�p commences installaiion of the equipment, or six monihs after the date that the Site Lease Agreement is approved. • Tk�e �ease term is five years. Zayo Group may exter�d the lease �ox f ve five-year terms. City oftlyden Hills City Council Meeting of June I, aor r Page 1 of 2 Zayo Graup will provide a$2,000 deposit ta cover site restoratio� in the event that the lease is terminated or not renewed and Zayo Graup does not remove its equipment and restore the site within sixty days. Recommendation Staff recomm�nds that the City Council approve the Site Lease Agreement with Zayo Group, LLC for an equiprr�ent cabinet at the Cl�m_zx�xngs Pa�rk {Fe�waod) watex tawear. Attachments A. �ite Lease Agreement S. �ystem Plans City ofArden Hilds City Council Meeting June 1, 2011 Page 2 af 2 Attachment Site Lease Agreement City of Arden HiIIs City Council Meeting for June I, 201 l S[TC LCASE ACRE�MENT This Site Lease Agreement {"I_ease"). is dated _ day of , 201 1("Effeetive Date"} and is entered into b� anci bet�i•een the Citv o� Arden Hills, a Minnesota statutory eity ("�,andloref"}, and ZAYO Group LLC. a Dela.�are cor}�oration ("Tenant"j. �=or good and valuable consideratian. the parties agree as follows: Landlord ,Propertv. Lat�dlord is the o��ner of the fol�owing described �roperty lacated in Arden Hills, Ran�se�� Count� _ Minnesota ("Landlord Propert}�"): The ��°est 190 Feet oi the r�orth l �0 feet of the south I 62 feet o#' the east '/2 of the sauihea$i '/4 of Sectioi� 22_ "I-ownship ;�, Range 23; and a Water Tawer iocated thereon_ 2_ Leased Premises. Subjcct to the tern3s at�d conditio�ts of tl�is Lease, LancElord hereby leases to Tenant and Tenant lease� from Landlord the following por�zons of Land(ord Property- a} "The portion of the I.anc�lord P�-operty which wil� be used by Tenant to instalI conduit. cables anc� related equiprnent for corr��unication iaciIities {the `.Sysiem"). b) A non-exclusive easen�ent over those portions of the Landlord Propeny fro� t�e public �-iaht-of-w�ay and from the rtearest public uti�ities to the System {"Access Easement ti.�•ea' j_ The area includ3n� the System and t��e Access Caserr�ent Area are hereby co�lectively referred to as the "Leased Premises-�_ 3. It►stallation of ti�e Svs#ern. TeE�ant shal( install the System i� comp�iance with tl�e folltiwing p3ans and specification ("S�stem Pians"): a) ZAYO Bandwidth, I'roject No_= 2010-082/A�N0133A sheet, Sheet GI dated ApriI 7, 201 �. b) ZAYO Bandwidth, i'roject No_= 2010-082/AiNOl33A st�eet, Sheet G2 dated September 22, ?O10. c} ZAYQ Bafldwidlh, Project Na.: 2010-082/A1N0133A sheet, Sheet C-3 dated Septem�er 22, 2010_ d) ZAYO Bandwfdth. Project No_: 2010-082/A1N0�33A sheet, Sheet G4 dated Octaber 2 I , 20 ] ] . e} `LAYO Band��icfth_ Pra�ect No.: 2�10-082/A�NO1>;A sheet, Sheet C-5 dated October ? 1, 20 i 0. 4. Renr. a) Arnour�t_ Adjustnlents_ As a condition for this Lease, T'enant shall pay Landlord an annual renc in the a�nou�t of f��e thousand doliars ($5,000.00) �`ar the initial year, whic[� shai� be increase�d each year an 3anuary 1 foilowing the first ar�niversar� of tl�e Commence�nent Date, and annuaily thereafter, by three percent {�%} of the previous y°ear's annualized renial. b) Tirne of Pavr��ent_ "f�a�es. For the tirst year, Ehe rental shall be �ro-rateci ihrou�h nccerr�ber 31 _ 201 I and s��all be paici to Landlard ��ithin thirty {30} days af the f�il execution of this Lease. 1f the Tenant does not meei the requirements referenced ir� S�hparagraph 5{a) beiow by December 31, 201 1 and Tenant has diligently pursued suc�i requireme�ts, �,and�ord shall refund any renta� payment made by the Tenant and this Lease shal� terrninate. In addition ta the annual renFal_ Te�ar�t a�rees tc� tirr�ely pay anr- personal prope�y tax, real property tax; or any ot�er ta� or fee ��hic}1 is directiy attribu�able to the presence or installation of the Svstei��. 5. GovernEnental Approval Contin�ency_. a) Tenant A iicalion_ Tenant's right to use the Leased 1'remises is expressly made conti�gent upon its obtaini��g all the certifcates, permiEs, zoning az�d other appror%als ihat rna� be required by any federal, state, or Iocal authority. b} Interference Stud�. Since no wireless transmitting or receiving equiprr�ent is being installed on tlle Premises_ an ii�terference stud�� sha[I not be required. c) Non-ap�ro�-al. in the cvent t�at any application necessary �nder Subparagraph 5(a} above is 1i��ally rejected or any eerti�cate_ per�nit, license, or approval issued to Tenant is cancelled, expires, lapses, �r is otherwise w�thdrawn or terminated bv go��e�-nn�ental aut�ority so thai Tenant, in its so�e discretion, will be �nabie to use the Leased Premises far its intended putposes, Tenant shall have the right to Eerrt�inate this Lease ar�d be �eirnbursed for t�e rental payment if made pursuant to Subpara�raph 4{b) above. Notice of Tenant's exercise of iis right to tern�inate shall be given to Landlord in writing by certifed rr�ail, ret�rn receipt requested. and shalI be effeciive upon receipt of such notice 6y Landtord as evidenced b}� the return receipt_ Except as rea�ired under Subparagrap� 15{d} below_ upon such termination, this Lease shalI becor�e nuI� and void and the partres shall have no further obligations to eac� other_ 6. Tertx� ar�ct Renewals. �I�he "lnitia� Term" of this L�ase shall commence on the earlier of (i} the ciate Tenant commences instaIlation ofthe System, or {ii) six (6) rnont�s after the �ffective Date and end on Decerr�ber � 1 %llawin� the fifth an�iversary of ihe EFfecti�e Date of� the Lease. Subject to the terms and co�ditions of this Lease, Tenant � shail have the righi ta extenc� this Lease for five {5) additional five (5) year renewal periads {"Renewa! Term") comti-Eencing on January 1 following the expiraiion date of the Initial Term and of any subsequent Renewal Term. This Lease shail be automatica(ly renewed for each successive Renewal Term unless Tenant sends written notice of non-renewal to Landlord no later than ninety {90) days priar to the expiration of the Initial Term or any Renewal Terrti, such no�ice to be pravided in accordance wit�� Paragraph 23 of this Lease. 7. Tenant's Use. aj User Priorit . Tenant agrees tllai the following priorities of use, in descending order, shall apply in the e�e�t o£ cammunication interference or oiher conflict wl�ile this Lease is in effect, and Tenant's use sha11 be subordinate accordingly: 1_ Landlorcl's pre-existi�g use of tlle Landlord Property as of the Effective Date; and 2. Tenant and other gavernmer�t regulated entities whose antennae provide safety and rescue services. As to these parties, pr�orities shail be based on a first in time basis, i.e. parties coming to the Landlord i'roperty firs�, have �irst in time protections from users of the Landlord Property at a later date, and parties coming to �he Landlord Property last must not interfere with existing users of �he Landlord Property. b} Purposes. Te�ant shall use tlle Leased Premises only for the puipose ot' installing, �naintaining, repairing, removing and operating the System and uses incidenia� thereto for providing te�ecommunication services which Tenant is legally author�zed to provide to the public_ This use si�all be non-excl��sive, and Lanci�ord specifically reserves the right to ailow o�her �a�iar�s of the Landlord i'roperty to be used by ot�er parties, provided such other parties do not interfere wit�l Tenant's operaiions and use. c) Operation. Tenant shall l�a�e the right, at its sole cast and expense, to operate and maintain the System on the Leased Premises in accordance with good engineering practices, wit� ali applicable FCC ru6es and regu�ations. Any damage done to the Leased Premises or other Landlard Property, including the Water Tower, during Tenant's insta[lation or caused by Tenant's operations, shail be repaired at Tenant's expense witl�in tl�irty (30) days after no��fication of darnage. The System shall rerr�ain the exclusive properiy of the Tenant, unless otherwise }�rovided in this Lease. d) Maintenance Im ravement Ex enses. Ali modifications to the Leased Prei�ises and all irr�provements performed for Tenant's b�ne�t shall be at the Tenant's expense and such improvements, including ihe System, sl�atl be inaintained in a good state of repair, anc� secured by Tenant. 3 e) Re�lacements. Before replacement or physical expansion of the System o� the Leased Propert�r, Tenant �nust natify and provide a detailed proposai to Landiord. � Drawin�s. Withi� sixty {60) days of Ten�nt's completion of it�stallatio�, Tenant shall provide Land[ord wtth as-built drawin�s of the System_ g) No In�er�erence. Tena�t shall, at its own expense, mair�iain any equipzx�ent on or attached ta the L�ased Pre�ises in a safe condition, in good repair and in a manner suitable to Landlord so as nat to conflict witli the use of tlie surroi�nding premises by Lar�d�ord. Tenant shall not unreasanably interfere with the operations of any prior tei�ant, the use of the City's Water Tower, existing ienants and shall not interfere cvi#h ii�e working use of the water starage faci�ities tl�ereori by Landlord as of the �ffective Date. h} Access. Tenant, at all times c��ring this I,ease, sha�l ha�e access to the i,eased Prernises in order to install, operate, and naaintain the Sy�tem. i) Payment of Utilities. Tenant shall separately meter char�es for tl�e cc�nsumption of electricity and ott�er utilities assaciated with its use of the Leased Premises �nd shall proznptly pay all costs associated therewith. Emer�encv Faci[ities. In the event af a na�urai or �nan made disaster; or i� the FCC issues an order determining the Syster� poses a danger to the health, welfare, and safety of the cotr►�nunity, Tenant may, at its cost, or� a temporary basis, place a shelter or remove the System from the Landlord Property. 9. t��itt9t�m�aal �4a�r*��:��e� �x�P�s�s. 1�1o�withsta��ding an��tl�ing in tl�is Lease to the cor�trary, and subject ta the rights contained herein, Tenant shall promptly repair any damage to the Landlord Property caused by Tenant's installatian, maintenance, re�air, rernoval at�d operation of the System upon written notice fram Landlard_ 10. Intentianall Omitted. 11. A�ditional Buildin�s. Tenant acknowledges ihat Landlord may perrn�t adciitia�ial buildings, systems and/or equipment to be cor�structed on the Landlord �'roperty. 12. Defe�se and �ndemnifca#ion. a) General. Tenant agrees to cEefend, indem�i�y and hold harmless Landlord and its elected off cials, o�ficers, employees, agents, and represeniatives, fron� and against any and all ciaims, costs, iosses, expenses, demands, actions, or causes of action, including reasonable attorneys' fees and otlier costs and expenses of litigation, which �nay be asserted against or incurred by Landlord, to the extent caused by Tenant's installation, operation, use, rnaintenance, repair, remaval, or presence of the Systetn on ti�e Leased Prei-►�ises, except those, whicll arise from the negligence, vvillfui miscond�ct, or ather fault of Landiord. 4 �j Hazarc�aus Materials. Witliout Iimi�ing the scope of Subparagraph 12(a} above, Tenant will b� solely respansible far and will defen�, inde�nnify, and ho(d Landlord, its agents, and empioyees ha�less from and against any ar�d a11 claims, costs, and liabilities, including attorney's fees and costs, to �he exten� caused by Tenant's use of I-Tazarda��s Materiais. �ar purposes of this Lease, "Hazardous Materiais" sl�all be interpreted braadly and specifical�y includes, without iimitation, asbestos, fuei, batteries c�r any hazardous substance, wasie, or materiais as defined in any federal, state, or lacal environmental or safety law or regu�ations including, b�t nat limited to, CERCLA. c} Landlard's Warrant . Landlord represenis and warrants that it lias �o knawiedge of any Hazardous Materials on the Landlord's Property. Landlord agrees to defend, indemnify and hold harrriless Tenant and iis offtcer�, empIoyees, contractors, agents, and representatives, from and against any and al� claims, costs, iosses, expenses, demands, actions, or causes of action, including reasonah�e attorneys' %es a�d ather costs and expenses of litigation, which may be asserted against or incurred by Ter�ant as a result of (i) Landlord's breach of the warranty herein, anci/ar (ii} those damages or bodiiy injuries, including death, resulting from tl�e existence, discovery or release of Hazardous Materials on the Landlord's �'roperty caused by Landlord, or third parties not related to Tenant, prior to and durin� the Ini�ial Term and any Renewal Terrn of this L�ase, except those, which arise from Tenant's negiigence or willfi�i misconduct, alI sub�ect ta the }�ra�isions of Minnesota Statutes Chapter 466. d) Tenant's Warranty. Tenant represer�ts and vvarrants that its use of the Leased Pre�r►ises will r�ot genera�e �nd Tenant will not s#ore or dispose of on the Leased Premises, nor transport to or a�er the Leased Premises, any Hazardous Materials, in violation of the law, unless Tenant specificaily informs Land�ord thereof in writing twenty-four hours prior to such storage, disposal or transport, or otherwise as soon as Tenant beco�nes aware of ihe existence of Hazardous Materials on the Leased Premises. Notwithstanding the foregoing, it is agreed and undersioad tha� the Tenant may be permit�ed ta use such Hazardous Materials that are commonly �ised in tlte type of facility cont�mplated herein, including without limitation, fuel-powered generators and batteries. The obligations of this Paragraph 12 sha�l survive the expiraiion or other termination af this Lease. 13. Insurance. a) Workers' Cam ensation. Tl�e Tenant must nzaintain Workers' Compensation ir�surar�ce in campliance witl� all applicable statutes. The policy shall aisa provide Employer's Liability coverage with limits of not less than $500,04Q Bodily Injury eac�� accident, $500,400 Bodily in�ury by disease, policy limit, and $500,000 Bodily Injury by disease, e�ch employee. 5 b) General Liability. The Tenant must maintain an occurrence form commercial general liability coverage. Such coverage sha�l include, �7Ut 110� �� limited to, bodiiy injury, pro�erty damage -- broad farm, and personal injury, for the l�azards of Premises/Operation, broac� fornl con�ractuat, independeni contractors, and productslcompleted a�erations. T�e Tenant rnust mai�tain afarementioned commercia� general liabi�ity coverage vvit�-► limits of liability not less than $1,000,000 �ac11 occtirrence; $ i,000,000 persanal and advertising injury; $2,OOa,000 general aggregate, and $2,000,000 praducts and completed operaiions aggregate_ Th�s� lirnits rr�ay be satisfied by the commercial g�neral liabiiity coverage or in camb�nation with an umbrella or excess liability policy, provided coverage afFarded by the umbrella ar excess policy is no iess than t�-�e underiying comm�rciai �enerai liabiii�y cavera�es_ c) Automobile L�abiiiiy. The Tenant musi carry Automat�ile Liabili�y coverage. Caverage shall afford total liability iimits for Bodily Fnjury LiabiIity and �'roperty Damage Liahiiity in the amount of $i3O�0,OQ0 per accident. The liabitity limits rnay be afforded under the Commercial Poiicy, or in combination with an Urr�brella or Excess Liabiliry Palicy pro�ided coverages afforded by the Umbrella Excess Policy are no less than the ur�derlying Comtt�erciai Auto Liabiiity coverage. Coverage sh�il be provided for Bodily injury and Property Damage for the ownershzp, use, �naintenance or operation of all o��vned, non-owned and hired automobiies. The Commercial Autorrtobile Polic� shal! i�ciude ai least statutory personal injury �rotection, uninsured motorists and underinsured matorist co�erages. d) Tenant �'ropertv �ns�rance. The Tenant �nust keep in force during �he ier� and any renewats of the Lease a policy covering dacnages to tlie System located an the Leased Premises. T��e amaunt of coverage sliall be sufficient to replace the damaged property, loss of use and cornply with any ordinance or appticahle law. e) Additiona( Insured - Certi�'icate of Insurance. The Tenant sha�l provide, prior to tenancy, evidence of the req�ired ir�surance in the form af a Certificate of Insurance issued by a company (rated. A- or better) by B�st Insurance Guide, licensed to do business in the state of Minnesota, which inc�udes all coverages required in this Paragraph 13. Tenant will name Landlard as an Additional Insured on ihe General �,iability and Comm�rciai Automobile Liability Polic�es. The Certificaie(s) shall also pra�ide the caverage �nay not be canceled or reduced witliout thirty (30) days �rior v�itten r�otice to Landlard_ 14. Dama�e ar Destruction. If the Leased Premises is destroyed or damaged, without contributory fauit of the Tenant or its agents, so as, in Tenant's �udgment, to hinder its ef#�ective use of the Syste�, Tenant may e(eci to terminaie this Lease upon ti�irty {30) 0 days' vv�itten notice ta Landlord. �n the event Tenant eiects to terminate the Lease, Tenant shail be entitled to reir�bursetneni of prepaid rent coverir�g the period subsequent ta tlie date of damage to or destruction of the Leased Premises_ 15. Lease Ter�ninafion. a) Events of Termination. Exce�t as otilerwise provided herein, this Lease may be termi�ated upon sixty (b0} days written �otice t� the other party as follows: 1. by either party upon a default of any covenant or term hereaf by the ot�er party, which default is not c�red within sixty (64) days af receipt of writte� notice of default to ihe other party (without, however, lirniting any o�her rights of the parties pursuant to any other pro�isions hereo� �r�less such default may not reasonably be cured wit��in a sixty (60) day period in which case, this Lease may not be ter�-riinated if t�e defaulting party comrt�ences action io cure the default r�vithin such sixty (60) day period and proceeds with due diiigence to fully cure the defauit; 2. by Tenant for cause if it is un�bfe to abtain or maintain any license, per�nit or other governmental approval necessary far the constructioi� andfor operation of the System, ar if it is otherwise �nable to use the Leased Premises for ti�e purposes described rtn Section 7{b); 3. by Tenani for cause if t�e System is or becomes unacceptable for technological reasozis wl�ich z�easons shatl be cotnmunicated in writing to Land9ord; 4_ by Landlord, after tl�e expiration of the second Renewai Term, ar►d upon o�e year's prior written notice to Tenanf iC ihe City Council, after the expiratior� af aii applicable appeai periods, votes, to disco�tinue use of the Landlord Property as a Water T�wer; 5. by Landlord after the expiration of the second Renewal T'erm, ar�d upon or�e year's prior written notice to Tenant, if an �ndependent licensed structural engineer deterrr�ines tliat the Water Tower is structurally unso�nd, including, but not limiied to, consideration of age o� the Water Tower, damage or destruction of ail or part af the Water Tower from any source; and 6. by Landlord if Tenant fai�s to camp[y with appiicable ordinances, or state or %deraI law, or any conditions attacl�ed to governmeni appro�als granted thereunder, after a pi�blic hearing be€ore the Landiord's Council. b) Natice of Termination. The parties sliati give Noiice of Termination in writing by certified rr�ail, return receipt requested. Suc� Notice sl�a�l be effecti�e upon receipt as �videnced by the ret�irn receipt, or such later date as statecE in the 7 Notice. AIl rentals paid for the Lease prior to said terminatio� date shall be retained. by Landlard, �nless such terminaiion is due to an uncured default or breach by Landlord, or Landlord's, or tl�ird parfy's, interference with the Syste�n and/or Tenant's aperatians. c} Tenant's Liabiiitv �or Eari,�ination. If Tenant termittates this Lease other than of right as provided in this Lease, Tenant shall pay to Landlord as Iiquidaied damages for earIy tertnination, one-��ndred f fty percent { 1 �Q%) of the annuai rent for the year �n which Tenar�i terminates, unless Tenant terminates during the last year of any Ter�n �inder Paragraph 5 and Tenant has paid th:e annual rer�tal for that year in which e�vent, no further amounts shalt be due Landlord. dj Security/Site Restoration. On tl�e Effective Date of this Lease, Tenant shall deposit with Landlord the sum of two thousand doliars ($2,040.00) (remaval- restoration security} to guarantee Tenant's performance of the o�ligations described in this subdivision. In the evern that tl�e Lease is terminatec� or not renewed, Tenant shail have sixty (60) days frorn the date of terminatian or expiratian to remove the System from the Leased Prernises; and to restore ti�e Leased Premises to its condition �xior to Tenant's use. If Tenant satisfies its remova� and resloratian obligations, the rert�ovai-restoration secE�rity shall be refiinded to Tenant, or, atherwise such security should be retained by the Landlord and the System shaii I�e deemed abandoned and become the property of the Landlord and Tenant s�ail have no further rig�-►ts thereto. 16. Limitation of Liabi�ity. Notwitl�standin� anything to the contrary herein, n�ither party shal� be liable to the at�er for indirect, special, incideniai or co�tsequential damages, ir�cluding, without limitaiion, ioss of �rof�ts, income or business opportunities to the other. 17. Tem�orary Interru�tions of Seirvice. If the FCC issues an �ir�appealable order that t�7e continued operation of the Systern will cause or contribute to an immediate threat to public heaIth and/or safety, Landlord may order Tenant to discontinue its operation. Tenant shal� immediately comply with sucY► an order. Service shall i�e discontinued or�ly for tl�e periad tiiat the immediate threat exists_ If the discantinuance extends for a period greater than three days, either consecutively ar cumulative�y, Tenant shall have the cight to terrr�i�ate th'rs Lease within its sole discretion. 18. Interferencc a} With Water Tawer. Tenant shall not interfere with Landlord's existing use of the Water Tawer as of the E€fective Date and agrees to cease all sUch actions whict� unreasonably and rnaterially interfere with Landiord's use thereof no later than t�►r�e business days after receipt of writien noiice of the ir�terference from Landlord, except inter�nittent opera#ion for the purpose of testing, until t11� interference has bcen eliminated. In the event that Tenant's cessation af action is E:3 nlaterial to Tenant's use of the Leased Premises and such cess�tion frustrates Tenant's use af t�e Leased Premises, within Tenant's sole discretion, Tenant shall have the immec�iate right to ter�n�nate this Lease. b) With Pre-Existin� U�ers. If the System causes impermissibie interference witlz pre-existing tenants with equi�ment i�stailed prior to tile Effeciive Date, Tenani si�ali take all measures n�cessary ta correct and elirninate tlie i�terference. I� the interference cannot be eliminated withsn 48 hours after receiving Landlord`s written notice of the interference, Tenant shail immediately cease operating the System and shal� not reactivate operation, except iniermitter�t operation for the purpose of testing, ur�til ille interference has been eiiminated. If the interference cannot be eliminaied within sixty (60} days after delivering written notice to the other party, L�.ndlord or Tenant may tenni�ate this Lease imrnecliate�y. 19. Assi�ninent. Tenant rnay, upon written notice to Landlard, trar�sfer (by assignz�nent or s�blease) its rights arising under this Lease �o any corparation, partnership or other entity which (i) is conirolled by, controlling or «nder comrz�►on control with Tenant, (ii) sl�all �nerge or consoiidate with or into Tenant, (iii} shall succeed to atl ar substantially ail the assets, property and business of Tenant, or {ivj may t�e req«ired in connection wit(i any offering, merger, acauisition, recognized security exchange or financing. Upon such assignment, Tenant shall be relieved of a�l liabi�ities and obligations i7ereunder and Land�ord shali laok soleiy to the assi�nee for perfo�rr�ance ur�der this Lease and all obligations I�ereunder. Said assignment si�al! only be effective upon receipt by Landlord of written acknowledg�men� from assignee of thezr assumption of all liabilities and obligations hereunder. Under all other circumstances, such transfer shall require Landlord's written consent, wllich consent s�all not be unreasona�ty withheld, conditioned ar delayed. Notwithsianding anything ta t11e co�trary herein, Landlord hereby consents to the assignment by Tenant of its rights under this Lease as co�lateral to any enii�y, which provides fi�ancing for the purcl�ase o� the equipment to be installed at the Leased Premises {"S�cured Party"). 20. Condemnation. In the event the whale of the Leased Premises is taken by eminent domain, this Lease shali termir►ate as af the date title �o the Lcased Premises vesis in the condetnnin� authority. In event a portion of the Leased Pr�rraises is taken by eminent dornain, either party shali have t(�e ri�ht to termit�ate this Lease as of said date of title transfer, by giving thirty (30} days' written notfce to ti�e at�ler party. In the event o� any taking ur�der t�e pawer of eminent dor�zain, Tenant shall r�oi be entitled to any portion of the reward paid for ihe taking and the Landlord shall receive fuil amount of such award. Tenant h�reby expressl� waives any right ar cl�.im to any portion thereof. Althougl� ali damages, whether awarded as cornpensatio�► for diminution in value af the leasehold or ta the fee of the Leased �'rerriises, shall belong to Landlord, Tenant shall have the r�g�t to claim at�d recaver fra�n the condemning authority, but not from Landlord, such compensation as may be se�arately awarded or recoverable by Te��ant on account of any and all damage to Tenant's business and any casts or e�penses incurred by Tenan� in moving/removing the System_ 7 21. DisPutes. Except in the event where a party seeks immediaie injunctive relief, any dispute airing under this Lease v�ri11 be discussed in �;ood faitti for no more t��at� 15 working days, after which time, either party may pu.rsue any remedies which it may have in law or in equity ir� a State or Federal court having com�etent jurisdiction over Arden Hi�ls, Minnesota and �ocated in Ramsey Co��nty, Minnesata. 22. Enforcerne�t and Attorneys'_rees. In the evEnt that either party to t�iis Lease shall bring a claim in arbitration to enforce any rights hereunder, the prevailing par�y shall be entitied to recover costs and reasonabie attorneys' fees incurred as a result of such claim. 23. Nofices. Al1 notices hereunder mL�st be in writing and sha�l be deemed validly given if delivered personatly or if sent by certified xnail, return receipt requested, addr�ssed as foilows (or any other address that the party io be noti�'ied may have designated to tl�e sender by like notice): If to Landlorc�, to: Ci�y Administratar City of Arden Hilis �245 West Highway 96 Arden HilIs, MN SS112 Wit�t a copy to: Peterson, Fram & Bergtnan, PA 55 East Fift� Street su�te soa St. Pau�, MN 55101 Att�ntion: Jerome P. I'illa �f to Tenant, to: Zayo Graup, LLC A�n: General Counsel 40U Cen�ennia! Pkwy, SLiit� 200 Louisville, CO 80027 Email: cyosi@zayo.com 24. Authority. Each of the ind�viduals executing ti�is Lease an behalf of il3e Tenani or the Landtord represents to ti�e other party that such inc�ividual is a�tthorized to do so by requisite actian af tl�e party to ti�is Lease. 2S. Bindin� Effect. This Lease shall run with the Leased Premises. This Lease shall extend to and bind t�ze heirs, personal representatives, successors and assigns of tlie parties hereto_ 25. Co�nnlete Lease: Amendments. This Lease constit��tes the entire agreement aiul understanding of th� par�ies and supersedes aIl offers, negotiations, at�d other 10 agreements of any kind. There are r�o represer�tatians or uaderstandir�gs of any kinc� not set forth herein. Any modi�icafion of or amendme�t to this Lease must be in writ�r�g and exeeuted by bot� pa�ties. 27. Governin� Law. Ti�is Lease si�all be constr��ed ir� accordance with the lavvs of the State of Minnesota. 28. Limitation of Liability. Nothi�g in the Lease shall be deerned a waiver of any limitation of liability or defenses under Minnesota Statutes Chapter 466 or any other pravision of law. 29. Severabiii . If any te�•m of this Lease is found be void ar invalid, such invalidity shail not af%ct ti�e remaining tertns of this Lease, whicl� shall continue in fu�i force a�3d effect. 30. Mem�randum. Upon request by either party, the parties agree to promptly execute and deliver a recordable Memorandurn of this Lease in a form acceptabie to both parties, which nr�ay be recorded F�y the party rec�uesting the Mernorandum of Lease. 3I. Waiver of Landlard's Lien. La�tdlord hereby waives any and ail lien rights it may have, statutory or otherwise, concerning ihe System or any portian thereof, which sliali be deemed personal property for the purposes of this Lease, whet��er or not the same is deemed real or personai property under appl'zcable laws, and Landlord gives Tenani ar�d Secured Parties the right to remove all or any portion of the sam� from time to time, whe�her before or after a default under this Lease, in Tenant's and/or Secured Parties' sole discretian and wit��aut Landlord's cansent, subject ia ihe provisions of Section 151d� of this Agreemet3t. 11 IN W�TNESS WHCREO�', the parties hereto have set tl�eir hands and affixed their respective seals the day and year first above written. LANDLORD: CITY OF ARDEN HILLS By: David Grant Its: Mayar By: Patrick Klaers Tts: City Administrator ST�1TE �F MINNESOTA ) )SS COUNTY OF ) T�e fore�ain� instrument was acknowledged before me this day af , 2�11, by David Grant and Patricic Klaers, respecti�ely the Mayor and City Admir�istrator af the City Arden Hills a�d executed the Agreem�nt by authority of the City. Natary Public iz TENANT: ZAYO GROUP, LLC, a Defaware corporatian and its af�'iliates and subsidiaries By: J1'!�N �5'/��LL14 zts: �'y�1� �t�t �7` a�S STATE O�' � o Lc �c� �( T) )ss_ COUNTY OF �� u ��P/ ) T�e foregoing instrument was acknow�edged before me this � 3 F� � day of , 201 �, �y _ l�'I�- �i�, Sy�� /1_�� t��e + s , of ZAYO GROU� LLC, a Delaware corporation and its affil�ates and subsidi�ries, on belialf of the corporation. uz � C�� C i�olary b�ic o y o r.�� y CAUitH C. 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