Loading...
HomeMy WebLinkAbout04-30-07 Item 7B, Water Tower Lease Agreement ~ ~HILLS Request for Council Action Prepared By: James Lehnhoff Dept.: c:o~m,LJnity Dev. _ n~~El.t. ... ... " "------ Council Mtg. Date: __un_ ..n. ..."...." -""4-30~07-- Final Action Needed By: Agenda Item" 7.8 Budgeted Amount:___ Actual Amount: Funding Source: ..........."....________ ___........... . "-------..--.-..-........ .._ ~g:~~Gf[~Q{iijibBfRgg~~t[ill&2?m?u?~itt~~ml_______________,__,_.._........."........._._"_______n____n_'_"_m......"....,..._.._____n_________n'__.....,_,.................._....________________n__......."........._.___n_________________.._,...."..........._n_____________'_mm..."...,...._________________..___................__________, jConsider a Motion to Approve/Deny the Second Amendment to the Water Tower Lease Agreement Dated May 1, 2007, from Black Dati iWireless on behalf of Cingular Wireless PCS. ' ~~f:a:ffiifR~'gI~rnrrlejjjga1i9~ffh~b;agEiG'?jKi:3?EL~j fSfack DofWireless'iias-norpro~rded.Sta-itwith any'-reason to suppo-rt approval of the second-contract amendment. j~:y'RH9ffillf9:~g1fgW!>gWJ1::f@,11~j[~EIi1:]:1 : X i Memo/Letter: April 30, 2007, Memo to the City Council i Resolution No.: iOrdinance No.: 'Engineering Recommendation: !Attorney Recommendation: I X I Other: "fs:;E'Water'Yower'-Leas'e'-Ag-reemenr:::'Apri'f'"1'fC'"f989'- - - - - - -'..... ."." " ---,--,- 7B-2: First Amendment to the Water Tower Lease Agreement - March 26, 2002 78-3: Proposed Second Amendment to the Water Tower Lease Agreement - May 1, 2007 7_~_~,~_~.~,I.I.~t~r,~,~~,~..~.~,...R~!~~_f~.~..g,!,~_~r.N_~,~.~.t.?Y..~,i,!I~~_,=",~,~,~,~_~,~~,~,,~,"~",,__~"9_Q,~_ _,.. . ..." _ _ _ _ _ _ ......... , _ _ _ _ _ _'_....., "__ ___,_ " Non.: None. ~ ~HILLS MEMORANDUM DATE: April 30, 2007 Agenda Item 7.B TO: Mayor and City Council FROM: James Lehnhoff, City Planner I/' SUBJECT: Cingular Wireless Antenna Contract - Second Amendment Request Consider a Motion to Approve/Deny the Second Amendment to the Water Tower Lease Agreement Dated May I, 2007, from Black Dot Wireless on behalf of Cingular Wireless PCS. DiscussionlBackl!round In late 2006, Black Dot Wireless, on behalf of Cingular Wireless, contacted the City and indicated that they would be submitting a proposal to modifY the contract for their cellular antennas that are attached to the City's water tower at 4251 Fernwood Avenue. In late March 2007, Black Dot Wireless submitted a proposed second amendment to the cellular antenna contract. The second amendment would change the rent, the method of rent increases, termination provisions, and, potentially, antenna expansion procedures. As will be noted below, the current contract does not expire until April 2014; however, Black Dot could withdraw from the contract as early as April 2009. Staff has asked Black Dot Wireless to submit reasons for the proposed changes to include with this memorandum; however, they have stated that they prefer to discuss the proposed changes and the reasons for the proposed changes at a City Council meeting. Mr. Stephen Merill, a representative from Black Dot Wireless, will be at the April 30, 2007, City Council meeting via telephone. The remainder of this memorandum summarizes the original contract, the first amendment to the contract, and the proposed second amendment. Original Contract On April 18, 1989, the City entered into agreement with Minnesota Cellular Telephone Company, which permitted them to attach cellular phone antennas to the City's water tower and place electronic equipment at the base of the City's water tower at 4251 Fernwood Avenue. The initial lease was for five years, and the lease was set to automatically renew for up to four 1 additional five year terms unless the City or Minnesota Cellular withdrew from the contract at least 30 days before the beginning of a new five year term. There are five other provisions on page six of the original contract that would allow the City or tenant to withdraw from the contract. Unless prematurely terminated, this contract was set to continue to April 18, 2014. In the original contract, the monthly rent was set at $600 plus $25 for each additional microwave antenna with a maximum of two additional microwave antennas for a potential total monthly rent of $650. According to the contract, the monthly rent would increase at the beginning of each new five year interval (year 6, 11, 16, and 21). The rate of increase was tied to the consumer price index (CPI) with the general idea being that the monthly rent would be adjusted every five years to compensate for inflation over the previous five year period. For example, the rent would increase in year six depending on the change in the consumer price index (essentially the inflation rate) from years one through five. First Contract Amendment On April 26, 2002, the City approved the first amendment to the original contract. At some point between 1989 and 2002, the company's name changed to AT&T Wireless Services; however, the name change does not affect the status ofthe contract. The primary reason for the first contract amendment was to permit AT&T Wireless to install up to three additional cellular antennas on the water tower. With each new antenna, the rent would increase by $135.00. The first contract amendment also included a new provision that permitted the City to charge AT&T Wireless for any increased costs in maintenance for the water tower that could be attributed to the cellular equipment on the water tower. The method for increasing the rental rate, the provisions for termination, and the contract expiration date did not change with the first amendment. Proposed Second Contract Amendment The proposed second amendment includes four primary modifications related to: . Extending the contract, . Changing the termination provisions, . Changing the base rent and rate of increase, . Future expansions and equipment upgrades. The cellular antennas are now operated by Cingular Wireless, and Black Dot Wireless is acting on their behalf. First, the second amendment would extend the contract to May I, 2037, with the first five year term start on May I, 2007 (Black Dot has now indicated the new contract starting date may need to be pushed back). The lease would automatically renew for up to five additional five year terms unless the City opted out of the contract prior to the start of a new five year term. 2 A new provision in the second amendment would allow the tenant to opt out of the lease with thirty days notice to the City at any time after the end of the first five year term of the contract, which would be after April 30, 2011. If the tenant opts out of the lease after that date, the tenant would be required to pay the City twelve months ofrent. If the City exercises any of its options to terminate the lease within the first five year term, the tenant would not be required to pay the twelve months of rent penalty. The remaining termination provisions in part eight of the original contract would still apply. Chart 1 : Proposed Rent Year Monthlv Rent 2007 $1,012.66 2012 $1,093.67 2017 $1,181.17 2022 $1,275.66 2027 $1,377.71 2032 $1,487.93 2037 $1,606.96 Not prepared bv Black Dot The third primary change is the method used to calculate the rate of rent increase over the life ofthe contract. Starting May 1,2007, the monthly rent would be reduced to $1,012.66 from the current $1,355.79. Instead of tying the rental increase rate to the CPI, the rent would increase by eight percent at the end of each five year term (Chart I). For comparison, if rental rate increases were still tied to the consumer price index, the potential monthly rents by increase year depending on the inflation rate are shown in Chart 2. According to the Bureau of Labor Statistics, the increase in retail prices in the Twin Cities was 1.6 percent in 2006, 2.8 percent in 2005, and 2.8 percent in 2004 (http://www.bls.gov/cpiD. Chart 2: Potential Monthly Rental Rate By Potential Inflation Rate bv Year Inflation Year Rate per Year 2007 2012 2017 2022 2027 2032 2037 1% $1,012.66 $1,064.32 $1,118.61 $1.175.67 $1,235.64 $1,298.67 $1,364.91 2% $1,012.66 $1,118.06 $1,234.43 $1,362.91 $1,504.76 $1,661.38 $1,834.29 3% $1,012.66 $1,173.95 $1,360.93 $1,577.69 $1,828.98 $2,120.29 $2,457.99 4% $1,012.66 $1,232.06 $1,498.98 $1,823.74 $2,218.86 $2,699.59 $3,284.46 The 2007 rental rate would continue through 2011, the 2012 rate would continue to 2016, and so on. This chart was not prepared bv Black Dot. Depending on the change in the CPI through 2037, the rent mayor may not be keeping up with inflation at each five year increase. Since the monthly rent would not change each year, the rent is probably not keeping up with inflation in the years without a rental increase (2008-2011, 2013- 2016, etc). Finally, Schedule 1 of the Second Amendment incorporates the following additional language into the lease: L Expansion of Permitted Use. Landlord hereby agrees, at the direction of the Tenant, to allow the Tenant to modity, supplement, replace, upgrade, expand, or refurbish the equipment related to the Antenna Facilities, increase the number of antennas thereon or relocate the Antenna Facilities within the Leased Premises at any time during the term of this Lease, and Landlord shall cooperate with Tenant in all respects in connection with the foregoing. If Landlord does not comply with the terms of this section, Tenant may terminate this Lease and shall have no further liability to the Landlord. Staffs concern with the above language is that the reference to expansion and an increase in the number of antennas. A replacement project in 1994 and an expansion in 2002 required a Conditional Use Permit (referred to as a Special Use Permit at the time). It appears that Black Dot is requesting a waiver of the Conditional Use Permit requirement in Schedule 1. While Staff 3 does not have an issue with Cingular Wireless upgrading, replacing, or refurbishing equipment, Staff would not recommend waiving the Conditional Use Permit requirements for expansions. Recommendation At this time, Black Dot Wireless has not provided Staff with any reason to fully support approval of the second contract amendment. However, if the amendment is not approved, Cingular Wireless could withdraw from the contract in April 2009, which is the end of the fourth five year term. At this time, Staff is not aware of interest from any other wireless company that may want to rent the vacated space should Cingular Wireless withdraw from the contract; however, that has not been fully explored. For comparison, a spreadsheet of cellular antenna lease rates from surrounding communities is attached for your reference. Attachments 7B-I Water Tower Lease Agreement- April 18, 1989 7B-2 First Amendment to the Water Tower Lease Agreement - March 26, 2002 7B-3 Proposed Second Amendment to the Water Tower Lease Agreement- May I, 2007 7B-4 Cellular Antenna Rates for other Nearby Cities - December 12, 2006 4 Attachment 7B-l Water Tower Lease Agreement April 18, 1989 April 30, 2007, City Council Meeting . , -" - \I~ ~. ~~.:~I"':;""t~'" ,". /"'"'- , - ':;'fIo", I - ~...,..... '. -- , I "'~."- '.' CITY OF ARDEN HILLS MINNESOTA CELLUI.AR TRLli:l'HONE COMPANY WATER TOWER LE.!!.SE ACREEMENT , This Wilfli. Tower Laess ~greement ("this Lease") is entered into tb.is day,of 1ft'T7 L , 1989, by and between the CITY_ OF ARDEN HILLS, Mihneso a, a Mi.nnesota municipal corporation ("Landlord") and ,MINNESO,TA CELLULAR TELEPHONE COMPANY, a _Minnesota corporation (d/b/a Cellulax One) ("Tenant"). In consideration of the mutual undertakings, her,ein expressed, the par~ies agree as fOllows: 1. Definitibna. _As used herein; the following terms shall mean: (i. , , C;~",,,,,=,,,~ -);,fl.if-' '--f -("J"~ a. Antenna Facilities. property, including antenna as desoribed pe+sonal receiv:l.ng Means all equipment, radio transmitting and on Exhibit "A" attached. b. Approved Site Plan. Means plan approved by the Arden Hills City Council On the 13th day of March, 1989 i~lUS1:rating Tenant's proposed use of the Property and ~e required improvemente attached as Exhibit "B"_ c. COlDlnencement Date. Means the date On which the Landlord receives written notice from Tenant confirming that Tenant has received all required gOV9rnmental', approva~s, or, the date on which Tenant Or its agents commence construction of ~e Antenna Facilities on the Water Tower and/or the Tenant's equipment bui.~ding On a Property, whichever event occurs first. d. Equipment; Build:i.ng, Means a twe~ve (12) foot by twenty-eight (2B) foot by eleven (11) foot high prefabricated conorete equipment shelter with a washed rock finish as illustrated on the Approved Site Plan_ e. Property. Means the west 190 feet of ~e north 150 feet of the south 2162 feet of the East One-haLf of ~e Southeast One-quarter of Seotion 22, Township 30, Range 23, Ramsey County, Minnesota, subject to a public roed_ f. Water Tower. Means the el<isting City. of Arden Hills Water Tower located On the Property as il~ustrated on the Approved Site P1an and as further illustrated on Exhibit 'e" attached. 2. Leased Premises. SUbject to the terms and conditions of this Lease, Landlord :Leeses to Tenant and Tenant leases from :LandlO1:'d -those port_ions of the Property and the Water Tower on 1 f' , -....~"!~ ~ . ZOOItJ SNM-SSH13HIM av1n~NI~ ----- -- H66 09g--SZt XVd n:60 900V9VtO --' "';:... , < ~. ;--. ,-.., ~...J 1....... the Property as illustrated on the Approved Site Plan and/or the Water Tower plan illustrated on Exhibit "C" attached. 3. Terut. The term of this Lease shall be :five (5) years, starting Orlthe CoI1lmenceinent Date and terminating at midnight on the fifth annual anniversary of the Commencement_ Date. Except as hereinafter-provided, Tenant shall have the right to-extend-thLs- -Lease for four (4) additional five (5) year terms.subject to-all of the tern'1s and conditions of this' Lease-. This Lease shall automatically be renewed for each successive renewal term unless Tenant notifies Landlord of Tenant's intention not to renew the LeaSe at- l.east thirty (30) days prior to the expiration of_ the ini i:ial term or any renewal term; or, unles's, . dll!ring the third renewal term or any succeSSive renewal ~8~ thereafter; Landlord notifies Tenant, .a~ least thirty (30') days -prior to the end of such term, of L<lncUord's intent to terminate this Lease at the end of such term. ~ ".Ib" . 4. Ren"t. r', \_", c. COO lEi a. Upon the Commencement Date, Tenant shall pay Landlord as base rent the stun of S60'0'.O'O' per month. Tenant shall also pay as addi'l::ional rent the sum of $25.0'0' per month for each microwave antenna that tenant may, in the future, install on the Water TGWer up to a maximum of two (2) nd=owave antenna. Both the base rent and the additional rent shall hereinafter be referred to as "Rent". If the Commenoement Date oocurs at a time o.ther than on the first day of the month, Kent shall be pro rated as of the Commencement Date through the end of the month in which the Commenoement Date occurs. In all other cases, Rent shall. be payable on ~he first day of each month in advance to the Ci.ty of Arden Hills at 1450' West Highway 96, Arden Hins, Minnesota. b. On eaoh annual anniversary of the Commencement Date of the term of this Lease, the rent payable by Tenant shall he increased baaed upon the ino~ea5e in the cost of liVing index (CPr) du-r-ing the p-r-evious year; but, in no event, shall the annual adjustments required hereby be greater - than an amount egual to four pe-r-cent (4%) of the previous years' rent. The 61Ilount of the adjustment shall. be determined by using the U.S-. Department of T..abor, Bureau of Labor Statistios, .Consumer Price Index, MinneapOliS-St. Paul, for all urban consumers. (elP-U) The cost of living adjustment provided ror herein shall be compounded for the _ f-iv.e (5) year period. Rental adjustmeI:lts in accordance with t:his paragraph <1 shall take place at the cOmrllencement of every five (5) year renewal term. 2 SNM-SSa1aHIM RVlrr~NI3 tL66 09S S.t XVd .t:60 9oo./e./to . ' .. r"'"'\ ~. c-: ~~ r--, ".. , '-' '.' ...,". . I~"'" \"....... ,......, '....t.! c_ :tf this Lease is tetJiiHr1iiiiii lit a time other than On the J.ast day of a month, Rent shall be prorated ae of -the date of termination and, in the event of terlllination for any reason other than nonpayment of Rent, all prepaid Rents shall be refunded to T-enant. As ad~tional Rent, Tenant shall pay Landlord any taxes or other charges imposed on the Landlord or the Property as a result of Tenant'-s uSe or the Leas.:.d Premise-so 'Addi:t:ional rental charges shall be paid to Landlord within 15 days of Landlord's written request. d. Tenant shaH provide to Landlord, within thirty (SO) days Or the' Commencement Date, t,hree (.3) Uniden CP2000 tr,ansportable -c..llular- telephones with .:me -exi:ra bai:tery 'each Or_ equ1.va1ent ,un:i;ts' at Tenant' s_ discretion. Sa~d phones shaJ.l become the property of Landlord, inoluding a11 manufactu~er's warranties that apply.' Landlord agrees to execute one year minimum subsoriber agreements with Cellu~ar On~ for eaoh phone. Landlord shall be charged for use Of-said phones at the cu=ently ava1.lable Government rate or succ.;.eding rate struoture that may supersede said Government rate during the term of this Lease Or said subscriber agreements. 5. Use. Tenant may use the Leased Premises for the installati~ operation, and mai.ntenanoe of faci~:ities for the transmission and reception Or radio commun1.o~t:ion signals i.n such frequencies as may be assigned to Tenani: by the Federal 'Communications Co1l1lllission (the "FCC') and - :for the storage' of related equipment in accordance with the terme Or this Lease. Tenant sha;U use the Leased Premises in compLiance with all Federal, State, and looal laws and regulations. Landlord agrees to reasonably cooperate with Tenant in obtainuig, at Tenant's expense, any Federal licenses and permits required for Tenant"s use of the Leased Premises. 6. Installation of Equipment and Leasehold :r;"provements: Acoess; U1:1111:1e8. a. Tenant shall have the right at :i. ts sole cost end expense to install, Operate, and maintain on the water Tower portion of the Leased Preinises, Antenna Facili ties. Tenant' s instalJ.at-ion of Antenna ~ac1.11.ties and any subseguent moving of thOSe facilities shall be done according to plans approved by Landlord, which approval shall no'!: be Unreasonably withhe1d. The Antenna Facilii:ies shaJ.l remain the eXClusive property of Tenant, subjec'!: to the provisions Of Paragraph 8 of this Lease. 3 fOO~ SNM-SS~1aaIM MV1rr~Nlj fL66 OSg 9Zf XVd Zf:60 900ZISZIfO "'_!: (' '~-./ ('--. \ i .......... '. .... .-. r, '.,.- gOO lEI /"'-4... r-._ '-' , , _w b. T.mant may update- 'or :rEtPiace i;he Antenna FaciH.ties from time to time with the prior written approval. Of Landlord. provided that the replacement faci1.1ties are not greater in number then the existing. faoilities and .that their location on the leased portions of the rower is satisfactory to the Landlord. Tenan:!; shall submit to Landlord a detaiJ.-ed proposal- for. any such replaoemant facilitie~. and any supplemental materials as may be reasonably requested,. for Landlord's evaluation and approval, whioh approVal --'shall not be unreasonably withheld. An:lr additions. - al'l:erat.i.ons. or.. deletions of Antenna Faoi1H:ies shall not alter the tenns and conditions of this Lease. o. Tenant shall have the _right, at its sole cost and expense, to install, operate, and maintain on the Leased Premises'in the area illustrated-on the Approved 8i te Plan, an Equipment BuiJ.di.ng. . The-Equipment Building shall be oonstructed in aceord!ince w:!.th the ApprOVed Si.te Plan. .The Equipn\.ent S...il.ding and a:n equipment stored or operated thereinsh~ll remain the eXClusive property of Tenant, subj9Ct to the proviSions of' Paragraph 8 of this Lease. No eqUipment shall be stored on the Property outside of the Equipment Building. d. Tenan-l:, at all times dux-ing this Lease, shall have vehicle i.ngreS6 'and egress ovex- the Property and aocess -1:0 the Equipmelit Building and the Water Tower by means of the existing and proposed access road desoribed on Exhibit "D" attached hereto. e. Tenant, at all times during 'l:his Lease-. shal.l. have aoces,. to the Leased premises in order '1:0 install, operate, and maintain its Antenna Facili.ties and Equipment Building. Tenant shall have access _ to the water Tower portion of the Leased Preniises only -with the approval of the Landlord. TenSrl-t shall provide Landlord w:ith reasonable notioe of its request for access to the lilatar Tower portion of the Leased Premises; provided that, in the event of an- emergency, reasonable notice shall be constrl,led to_ mean con'l:act, . by ..tel_ephone or otherwise, 'wd.th the Ramsey County Sheriff's Department and the Arden Hills Public Wprks Supervisor. Tenant shall provide Landlord with a list of Tenant's authorized perSonnel. Tenant shall separately meter charges for the Consumption of electricity and other utiJ.i ties associated >lith its use or the Leased Premises and Shall pay all costa associated therewith. f. 4 SNM-SSff1~HI~ HV~aDNI~ vL66 09g siv -XVd .v:60 900.19.lvO r...... "........ r; \ .....H' "..' " '. ,,-....._-,_._-.~... r""-'. I \.h.' 900 lEi ;......- I.......! (-'" 1.",1,;'"' g. Tanant shall provide Landlord with drawings of the An-l:enna Facili-l:ias and Bquipment BUilding, wMcb. show the aotual location "f all equipmant and improvements. Said drawings shall be aocompanied by a complete and deta:ned inv'i'ntory of all equipment, PersOnal property, and Antenna Facilities actually placed on the water Tower. h. Tenant shall have Sole responsibil:i.:ty for the maintenance, repair, and security of its equipment, personal property, Antenna Faoilities., and leasehold improvements, and shall keep the same ;in good repair_ and condition during the Lease term. 7. Interference. a. Tenant-'s installation, opera-l::l,on, and maintenance of its Antenna :Faciliti.ea and l!qui.pmen-l: Building shall not damage 0>:' interfere in any way wi -l:h ~ Landlord's Wa-l:er TOwer operati.ons or related repair and msdntenance activities. Landlord, at all ti.mes du~ing this Lease, reserves the right to takG> any 'aoti.on it deems necessary, in its SOle discretion,- to repair, maintain, a~ter, or improve the Leased PremiSes and tp temporarily .interfere with Tenant' S -l:ransmission operation" or remove any of Tenant I s personal properi:y. equipment, Or Antenna Facilities as may be necessary in order to carry out any such aO-l:ivit!.es. Landlord agrees to give reasonable advanoe notioe OI any such activi-l:ies to Tanant and to reasonably COOperate with Tenant to carry out such aotiviti;>s in a manner that: minimizes, to the extent reasonably Possible, such temporary inte~ference_ . b. Tenant acknOWledges the presenoe of an antenna on the Water Tower_currently owned and operated by the Control Data Corporation and agrees that snch antenna may oontinue to ocoupy a po~ti.on of the Wa-l:ar Tower. In the event -l:hat any other party requests permissi.on to install or place any type of additional. antenna or . t>:>anslldss:/.on facili-!:y on the Property, _ the Landlord Shall. sublldt the propoeal to Tenant for review_ Tenant: ..shall have thirty (30) days following receipt. of such_ propOSal to make any objecti.ons thereto, end failure to make any objection W1.thin said tMrty (30) day periOd Shall be deemed consent by Tenant, -l:o the installati.on ot antenna or transmission facilities pursuant to said proposal. If Tenant objects within the required time limit. Landlord shall not allow a third par-!:y user to install an antenna or transmiSSion facility unless the third party user oan do so without interfering with Tenant's use of the Property. 5 SNM-SSa13HIM HV1fi5NI) ~L66'09g g.~ XVd C~:60 900./g./~0 ,.,,-- --- { , \.~ /""- \~--".' ... ~,. .,' >. ~ , '-- LOO lEi ,-, '......,. r--.- '-..v: c. In the event Tenant' s transm~ssilon Operati.ons interfere wi.th any type of e~eetron:lc recept:l.on or transmi.ssi.on of other parties in the surroun~ng area, Tenant ag:cees to remedy such i.nte:rference in accordance with app1.icable regu~ations and standards of the FCC. Tenant warrants that it .6ha~1 inaJ.ntain all of :its Antenna Facili1:J.es i.n full Compliance w:l.th all applicable regulations of the FCC. - 8. Termination. a. Except as otherwi.se provided herein, thi.s Lease may be termi.nated by one party upon s:ixty . ( 60 ) days written -notice to the other party .as follows:; i.. By e:l:l:he:c party upon a default of any oovenant Or term hereof by the other party,. which default is not cured wi thin si.xty ( 60 ) days. of receJ.pt of wri:l:ten notice of dei's':'l. t to tne other party (W:i.thout, however, 1.imiting any other ri.yhts of the parties pursuant to any Qther prov:l.s:l.ons hersof); _ ii. . By Tenant if it is unable to - obtain Or mainta:in any l:lcense, permit, or other government..-l approval necessary for the construction and/or operation of the Antenna Fac:ilit~es or the Leased Premj,sss becol1les unacceptabie under the -Tenant t a design or engineeri.ng specifications for its Antenna Facilities Or the communication systems 1:0 which -the Antenna Facilities belong; By LandlOrd if the Arden Ri.1Is City Council decides, in its sole di.scret.ion and for any reason, to redevel.op the P;r6pert.y and/or d:i.acontinue use of Or remove the-Water Tower; ill. iv. By Landlord if it determines, i.n i"hs so~e discretion and for any reason, that the Water Tower is_struoturally_unsound fOr use as a Water Towe:c, i.ncluding but not l:i.mi.ted to conside:cations of age of the structure, -damage or _ destruction of all Or part of the Water Tower Or the Property from any source~ or factors relating to condition of the Property; or, v. Immediately by the Landlord, upon receipt of a notice that Tenant"s insurance coverage,,!.- as raquired by paragraph S of thi.. Lease, have been oanoe11ed. 6 --'-- SNAi-SS:nmIIM lIVIll~NI:l--- tL66-08S S6t. XVI! ct': 60 9001:l81:1~0 '.' ~. .- ,-'" \.~..... I""" '~,/ , b. Upon terudnation of this Lease :Eor any reason. Tenanl: shall remove its equipment, personal property, Antenna FaciH_ties, - and leasehOld :improvements from the Water Tower and Property within s:i.xty ( 60) . days after the dete of term:i.nation. and shall restore the Water Tower and the Property to the oondition .it was :in on the Commencement Date of the term of this Leas.., a11. at Tenant's sole cost and expense. Any suoh property which is - not removed by the end of saUl si.o<t:y (60) day periQd shall become the property of Land1.ord. Tenant's ObUgat1ons to pay Rent shall cont.inue during such sixty (60) day periOd. r--- '-.v- . 9. Insurance. e. Tenant shall provide Comprehensive General L.iability InSUrance coverage, inOlud.ing prenIises!operations OOverage, independent contractor's liability, completed operations coverage, and contraci:u.a1 l.iability coverage, in a combined sin9le l1mi-t of -not 1ess than One Mi.11ion l)01lars ($1,000,000) p~r occurrence, subject to One M:Lllion Dollars ($1,000,000) aggregate. Tenant may satisfy thi.s requirement by underlying insurance plus an umbrella 1iabil.ity policy. b. o . \..t..-..... Neii:hOlr party shal1. be liable to the other (or to the other's successors or assi.gns) fo>: -atly loss or damage caused by fire Or any of the risks enumarated in' a standard "All Risk" :insurance policy, and, in the even1; of Such insured loss, nei:ther party's i:nsurance company shall have a subrogated claim aga.inat the other. c. Tenant shall provide to Landlord, pr.ior to the Commencement Date of the Lease term, evidence of the requ.ired insurance .in the fo:rm of a certificate of insurance iSsued by an insuranee company licensed to do business in the state Of Minnesota, which .includes all coverages required in Paragraph 9(a) above and contains evidence of the waiver Of subrogation contained in Paragraph 9(b) above. Said Cert:tfica-te shall also prOVide that the coverage sha],1' not be cancel-led, nonrenewed, Or materially changed wi1:bbut thirty (30) .days pri,or written notioe to Landlord. - - 10. nama",.. or Destruction. If the Property or the water Tower are destroyed or -damaged so as, :in Tenant'-s _ judgment to hinder its effective use of the Antenna Facilities, Tenant may el.ect to terminate this Lease upon thirty (30) days written notice to Landlord. /----- \" .' 11. Condemnat.ion. In .the event the whOle of the. Property is taken_ by eminent domain, the Lease Shail. tOlrmina-\;e as of the 7 .. - gOO~ SNM-SSfflffHIM HVln~NI~ --- vL66 Ogy YZV XVd r..:ao OOO'lo'/~n f""'" \I~: r \.._' ., >, . ,.:=......... \,,-,/ \....,/ ~T..\ datei::l:l::1e to -the Property vests in .the condellllting authority.- In the event a portion of the Property is taken by eminent domain, either party sha~l have the right to terminate this Lease as of the date of title transfer, by giving tltirty (30) dayS w.rii:i:en notice to the other party.. In the event of any taking under the power of eminent domain, Tenant shall not bl;i-, entitled to any port;ion of the awerd - psi" for the talting and Landlord shall, receive the full a1Ul;lunt of such awax-d, Tenant hereby expreSSly wa;i.ving any r:lght or Claim to any portion thereof. A1,. though all damages, whether awarded as compensation for diminution ~n value of the leasehold or to the fee of the Property, shall belops_ to Landlord, . Tenant Shall. have the right to c+a:lm and :J:'ecover f=m - t4e oondemning author:!. ty, but not from Landlord; ,such compensation as may be separately ",warded or recoverabl.e by Tenant on a9count of any and aLl damage to _ Tenant's _ business- by re'ason of the taking- and for or on account of any cost or lOa.!! to which Tenant mig_ht be put in removing its e;qui-pment, personal. property, Antenna Fa01lities, and l.ea~ehol.d improvements. 1.2. Xndemn.if:lca1:ion. Tenant agrees to ind'elnn:l:fy. defend, and hOld harmlSaa Landlord arid f.ts eleeted O:f:fib~.al.s, officers, employees, agents, and representatives, from and aga1rist any and all claims, costs, l.osses, expenses, demands, act~onS'. or-oauses of aotion, inCl.uding reasonable attorneys' fees 'l!I'\d pther costs and expenses of 1:itigation, which may be assertea. against or incurred by the Landl.ord or for which the Landlord ~ay be hel.d l.iable, which arise from the negligence, willful miscondUC1:, or other fault of Tenant or i1:s employees, or-suboorltraotors in the performance of tltia Lease or from the instal.lat:i.on, operation, use, maintenanoe, repair, removal, Or preBen1!'a of Tenant's transmission facilities on the Property and the ~at~r Tower, and specifical.ly incl.ud~ng the represen1:ations and,' 'tl'a,rranties of paragraph 1-4(b) of this Lease. . 13. No1;ices. Al.l. notices, r~quests, demands, and o'l:her communications hereunder shal.l be ~n ~i1:ing and shall. be deemed given ~f personally del~vered or mailed, oert~fied mail, return receipt requested, to the fol.lowing addresses: If to Landlord, to: City of Arden: Hills 1450 W. Highway 96 Arden Hills, MN 55112 , ATTENTION: City Adminis-trator If 1:0 Tenant, to: Minnesota_ Cell.ular Telephone Company (d/b/a Cel.lular One) 7900 Xerxes Avenue South, #1300 Bloomington, MN 55431 ATTENTION: Direotor of Engineering With a copy to: McCaw Cellular Communications 5808 Lake Washington Blvd. N.S. t"'~'- 8 ,--..... 600il'J SNM-SSa13Hr~ HV1n~NrJ ~266 08S S.t XVd tt:60 900./S./tO (-., ',,-.,.- .>." ., ,-..- r--'. , . '..U" ~'"...~, Kirkland, WA 98033 ATTENTION: Legal Department 14. Preo;Jen'tations and W=-.-ant:les. B. Landlord represents that: i. It has fu11 right, power, and authOrity 1:0 execute this Lease; and ii. Xt has good and unencumbered title of the Property free and Clear of any 1iens. or mortgag_es. Landlord warrants that Tanant shall have the quiet enjoyment of the Property during the tenu of this Lease in accordance with its-terms. b. Tenant represents and warrants that its' equipment, personal property, and Antenna FaCilities, and any or their component parts or byproducts, do not constitute hazardous wastes or substances under State or Federal laws. Tenant furt:her represents and warrants that, in the event af breakage, leakage, in~ineratian, or other calamity, neither its equipment, personal property,'_or Antenna Facilities, nor- any' o~ 'tMir' cOmponent parts or byproducts, would constitute sueh hazar_dous wastes or substances. i/""'.._ 15. ASlliqmnent. Tenant may not assj,gn this Lease without \..,..- Lendl.ord's prior -written COnsent, which consent shall not be unreasonably withheld, but may, without such consent, and so long as Tenant shall remain liable for- the performance -of Tenant's obligations hereunder, assign this Lease in whole or in part; (i) as security for Tenant's perfonuance of obligations incurred in order to make imprOVelllents to the Leased Premises, or (it) to any entity contrOlling, controlled by or under common contrOl with Tenant. Any transfer of this Lease from Tenant by me>:,ger, COnSOlidation, or liqUidstion, shall not be deemed an aSSignment for purposes hereof. Landlord's consent to any assignment shall not be deemed to be a- cons=t to any subsequent as';':l.grnnen-l:. Any assignmenl: other than in accordance with this seot:lon shall be voidable by Landlord _sixty (60) days after Landlord acquires knowledge of such as"1:ignment, during which period, Landlord shall have -the-option to terminate this,Lease. 1'"""- ~~r'~ 16. MiscelJ.aneous. a. Each party agr"',",s to furnish to the other, within ten (10) days after request, such _ truthful. estoppel information as the other may reasonably request. b. This Lease constitutes the entire agreement and understanding of the parties, and supercedes all 9 OTOIeJ SNM-SSa13HIM HV1U1~NI~ .L66 OSg g.. XVd ..:60 900./S.I.0 /' "'.- I' , '.,,-",, C~ '.' _f"" ,..,..- \..."., - , offers, negotiation~, and other agreements 01: any kind. There are no representations or \lnderstandings oE any kind not set forth herein. Any modifice:l:ion of or aGendment to tnis Lease must be in writing and executed by bo-!:h parties. c. This Lease shall be oonstrued in accordance with. the laws Of the State of Minnesota. d. If any term of this Leasa is found to be void or invalid, suoh inva1idity shall not affect the remain.ing terms of this Lease, which shall continue in full force and effect. e. Tenant agrees -1:0 pay Landlord all reasonable expenses incurred by Landlord in rev.:lewing_ this Lease, amendments to the Lease proposed by the Tenant, or in reviewing any other matters which require Landlord's review, consent, or approval pursuant to the t;erms Of this Lease. The expenses referred to herein shall include engineermg, legal, and other admin:lstrative eXpenses, but Shall noi: exceed $1,000.00 in connection with the City's initial review or S200.00 in connection , wi i:h any subsequent review. f. :t.andlorC\ shall not 'unreasonAbly withhold or delay any approvals and consents reserved to it under this Lease. Landlord hereby waives any and all lie~ 'rights it may have, statutory or Otherwise, concerning the Ant;enna Facil:l:t.1ee Or any portion thereOf, whioh shall be deemed personal property for the purposes of this Lease, regardless of whether or not same is deemed real or personal property under app1icable laws, and Landlord give", Tenant the right to remove all or any pOrtion of same from time to t:ime at Tenant_'s sole discretion without Landlord's consent provided thai: all rental payment Obligai:ions of the Tenant are current at the time of such removaJ.. g- 17. Contingency. This_ Agreement shall be contj,ngent upon Landlord's obtaining the access easement described on Bxhibi t "D" "ai:tached, which permits' the Tenant: to access _the Leased Premises from -!:he B",is'l:ing pub~ic road over property owned by the ContrOl Da:l:a Corpo:cation. If t:h1.g contingency is not satisfil'd within thirty (30) days of the date hereof, t:his Agreement: shaJ.I be null and void. 10 - vL66 OSS s.. XVd ..:RO ~OO'lo'I'n nOIEJ SNM-SSH13RIM avln~NI~ ~-- \ '~,...' (". \.,..... /"- , '-.....-. , " ~ , . > t""-, l . ".I..~ r""- \,'" Thi.s Lease waS executed as of the date firs_t -set above. LANDLORD: ::~ =l: H4t- Thomas R. Sather It:s Mayor By; ~ ~ ~ Gary R. erger Its City-Administrator_ TENANT: _ MINNESOTA CELLULAR TELEPHONE COMPANY By: 0-%2;~ ...-uav:id Tlialer Its General Manager 11 inOIEJ SNM-SSHl3HIM HV1il~NIJ - -- H66 oR gZ" XVd g,,: 60 9007.lR7.lt" f' \'c-' ,~-\ \......"..., (--.. , '..t.'" '. ' ,,,,,,, <'"''\ ....t.... \-.I.':T~ EXHIBIT "An .llntenna FACILITIES Up to six DBSS3F antennas or equivalent aM:ennas spac""d approximately equa11y -around the oir\lUJllference of the TOwer. All cable"" hangers, oonnectors, and other such hardware as may be required - -to attach all antennas to Tenant I S Equipment Build:l.ng. Up to two miorowave dishes at a maximum of 120 inches in diameter. no~ SNM.-SSH'lffilIM HV1J1t>NI:1 -"tLRR oue <:7.f7 YV...:r Cf7:Rn an07/()~Jfrn Attachment 7 B-2 First Amendment to the Water Tower Lease Agreement March 26, 2002 April 30, 2007, City Council Meeting " --~ , ) () ) ~<:. - .'f. FIRST AMENDMENT TO THE WATER TOWER LEASE AGREEMENT THIS FIRST AMENDMENT TO THE..\IIIATER TOWER LEASE AGREEMENT ("Amendment") is entered into on this ';uJi1. day of ~ 2002, by and between The City of Arden Hills, a Minnesota municipal corporation ("Landlord") and AT&T Wireless Services of Minnesota, Inc., d/b/a AT&T Wireless, a Nevada corporation, having an office at 2515 24th Avenue South, Minneapolis, Minnesota 55406, as successor-in-interest to Minnesota Cellular Telephone Company (d/b/a Cellular One) ("Tenant"). WHEREAS, Landlord and Tenant entered into a Water Tower Lease Agreement ("Lease") dated April 18, 1989, which is incorporated herein and made a part hereof by reference, in regard to property located at 4251 Femwood Avenue, Arden Hills, Minnesota, and relating to the installation and operation of Tenant's wireless communications equipment; and WHEREAS, Landlord and Tenant desire to amend the Lease to: (1) allow for the installation of additional antennas and related coaxial cable; and (2) modify the rent in conjunction with the additional antennas; and WHEREAS, Landlord and Tenant hereby express their mutual desire and intent to amend the Lease. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein set forth, and other good and valuable consideration, receipt of which is acknowledged, Landlord and Tenant agree as follows: 1. The leased portions ofthe Property and Water Tower, as defined in Section 20fthe Lease, shall be expanded to include an additional three (3) antennas, including related equipment and cabling, as more specifically described on the attached Exhibit "A". 2. The monthly rent as stipulated in Section 4(a) of the Lease is hereby amended. Commencing on the date that Tenant begins installation of the additional antennas, the monthly rent will be increased by One Hundred-thirty-five dollars ($135.00) per each additional antenna, per month, for a total increase of Four-hundred five Dollars ($405.00) per month. 3. All capitalized terms not herein defined shall have the same definitions as in the Lease. 4. In the event of any inconsistencies between the Lease and this Amendment, the terms of this Amendment shall take precedence. 5. Except as expressly set forth in this Amendment, the Lease otherwise is unmodified, remains in full effect, and is incorporated and restated herein as if fully set forth at length. Each reference in the Lease to itself shall be deemed also to refer to this Amendment. 6. If, in spite of Tenants efforts to adequately cover, protect or remove its equipment or facilities; Landlord incurs any increased costs in the maintenance of its water tower which are attributable to the presence of Tenant's equipment or facilities on or near such tower, Tenant shall reimburse Landlord for the reasonable increased costs incurred by Landlord due to the presence of such equipment or facilities. An example of such an increased cost would include, without limitation, increased cost of rigging or scaffolding due to the presence of Tenant's equipment or facilities at the site. Landlord shall submit a written invoice to Tenant delineating any such increased costs incurred. Tenant shall remit the invoiced amount to Landlord within thirty days of the date of the invoice. [Signatures appear on following page.) MI-101A1Arden Hills . ' ...... ... I -' I , o ) IN WITNESS WHEREOF, said parties have caused this First Amendment to the Water Tower Lease Agreement to be executed as of the date first above written. LANDLORD: :~." ..; . '" 1J1/S1'A tnL ~/'UF~ 2- Date: TENANT: AT&T Wireless Services of Minnesota, Inc., dIbIa AT&T Wireless, ::....~,.Vl MiC~rdOCk Its: System Dev~loP!TIent Manager Date: q /.;ltjt:>Z I STATEOF~~An-/L- ) h7 )ss COUNTY OF 'J"</Vh1/7/it ) On this K day of YTzMeh , 2002 before me personally appeared ~ ~ ,and acknowledged under oath that he/she is the 7J~; 2A' of the City of Arden Hills, the Landlord named in the attached instrument, and as such was authorized to execute this instrument on behalf of the Landlord. WITNESS my hand and t lcial seal affixed the day and year first above written. CYNTHIA L YOUNG NOTARYPIBIl-"'IESOI'A lite .. EIpRI.....31.2l105 cz.., otary Pu~li~ in and tor ~ ate of ~::/.d.~ y Commission Expires: 01/h:Jdff :5' STATE OF COLORADO ) .'-..... . . ) ss COUNTY OF .D\!^;'v\iUL ) On this ~ day of ~Ot:\f' 1v , 2002 before me personally appeared Michael Murdock, and acknowledged under oath that he is the System Development Manager of AT&T Wireless Services of Minnesota, Inc., the Tenant named in the attached instrument, and as such was authorized to execute this instrument on behalf of the Tenant. WITNESS my hand and the official seal affixed the day and year first above written. , o Notary Public in and for \Kle State of '\ My Commission Expires. COMMISSIO EXPIRES: 1\lcu ~h lS, 24,,;) MI-101A/Arden Hills Attachment 7B-3 Proposed Second Amendment to the Water Tower Lease Agreement May 1, 2007 April 30, 2007, City Council Meeting Cell Site No: Arden Hills 25491 Site Address: 4251 Fernwood Street, Arden Hills, MN 55112 SECOND AMENDMENT TO WATER TOWER LEASE AGREEMENT THIS SECOND AMENDMENT TO WATER TOWER LEASE AGREEMENT ("Second Amendment") dated as of the date below is by and between City of Arden Hills, Minnesota, a Minnesota municipal corporation, having a mailing address at 1245 West Highway 96 Arden Hills, MN 55112-5794 (hereinafter referred to as "Landlord") and New Cingular Wireless PCS, LLC, a Delaware limited liability company, successor in interest to AT&T Wireless Services of Minnesota, Inc., d/b/a AT&T Wireless, a Nevada corporation having a mailing address at 6100 Atlantic Boulevard, Norcross, GA 30071 (hereinafter referred to as HT enant"). WHEREAS, Landlord and Tenant entered into a Water Tower Lease Agreement, dated April 18, 1989, as amended by a First Amendment to the Water Tower Lease Agreement, dated March 26, 2002, whereby Landlord leased to Tenant certain Leased Premises, therein described, that are a portion of the Property located at 4251 Femwood Street, Arden Hills Ramsey MN 55112 ("Lease"); and WHEREAS, Landlord and Tenant desire to extend the term of the Lease; and and WHEREAS, Landlord and Tenant desire to modify, as set forlh herein, the rent payable under the Lease; WHEREAS, Landlord and Tenant desire to modify, as set forth herein, the Tenant's obligations to pay rent to Landlord for a Rent Guarantee Period; and WHEREAS, Landlord and Tenant, in their mutual interest, further wish to amend the Lease as set forth below. NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree as follows: 1. Term. The Term of the Lease shall be amended to provide that the Lease has a new initial term of 60 months ("New Initial Term"), commencing on May 1, 2007. The Term will be automatically renewed for up to 5 additional 60 month terms (each an "Extension Term") without further action by Tenant. 2. Termination. In addition to any rights that may exist in the Lease, after the Rent Guarantee Period, as defined below, Tenant may terminate the Lease at any time with 30 days prior written notice to Landlord; provided, that Tenant pays to Landlord an amount equal to 12 months of the then current rent. 3. Modification of Rent. Commencing on May I, 2007, the rent payable under the Lease shall be $1,012.66 per month, and shall continue during the Term, subject to adjustment as provided below. Landlord Initial: Tenant Initial: 4. Modification of Tenant's Obligation to Pay - Rent Guarantee. Notwithstanding Tenant's obligations to pay rent set forth under the Lease, for a 48 month period commencing May I, 2007 and ending April 30, 2011("Rent Guarantee Period"), Tenant hereby agrees that Tenant's obligation to pay rent is guaranteed and such obligation will not be subject to offset or cancellation by Tenant. Notwithstanding the foregoing, if Landlord exercises any of Landlord's rights to terminate the Lease, if any, Tenant will be released from any and all of its obligations to pay rent during the Rent Guarantee Period as of the effective date of the tennination. 5. Future Rent Increases. The Agreement is amended to provide that commencing on May I, 2012, rent shall be increased by 8.00% and every fifth year by 8.00% of the then current rent. 6. Acknowledgement. Landlord acknowledges that: I) this Second Amendment is entered into of the Landlord's free will and volition; 2) Landlord has read and understands this Second Amendment and the underlying Lease and, prior to execution of the Second Amendment, was free to consult with counsel of its choosing regarding Landlord's decision to enter into this Second Amendment and to have counsel review the tenns and conditions of the Second Amendment; 3) Landlord has been advised and is informed that should Landlord not enter into this Second Amendment, the underlying Lease between Landlord and Tenant, including any termination or non-renewal provision therein, would remain in full force and effect. 7. Notices. Section 13 of the Lease is hereby deleted in its entirety and replaced with the following: NOTICES. All notices, requests, demands and communications hereunder will be given by first class certified or registered mail, return receipt requested, or by a nationally recognized overnight courier, postage prepaid, to be effective when properly sent and received, refused or returned undelivered. Notices will be addressed to the parties as follows. As to Tenant, New Cingular Wireless PCS, LLC c/o Network Real Estate Administration, Cell Site # N118333, Cell Site Name: Arden Hills, 6100 Atlantic Boulevard, Norcross, GA 30071; with a copy to Attn.: Legal Department, New Cingular Wireless PCS, LLC, Re: Cell Site # N118333, Cell Site Name: Arden Hills, 5 Wood Hollow Drive, Parsippany, NJ 07054; and as to Landlord, City of Arden Hills, 1245 West Highway 96, Arden Hills, MN 55112. Either party hereto may change the place for the giving of notice to it by thirty (30) days prior written notice to the other as provided herein. 8. Other Terms and Conditions Remain. The Lease is amended to incorporate all the provisions set forth on Schedule I attached hereto. In the event of any inconsistencies between the Lease and this Second Amendment and the provisions set forth on Schedule I, the terms of this Second Amendment and Schedule I shall controL Except as expressly set forth in this Second Amendment, the Lease otherwise is unmodified and remains in full force and effect. Each reference in the Lease to itself shall be deemed also to refer to this Second Amendment. 9. Capitalized Terms. All capitalized terms used but not defined herein shall have the same meanings as defined in the Lease. [NO MORE TEXT ON THIS PAGE - SIGNATURES TO FOLLOW ON NEXT PAGE] landlord Initial: Tenant Initial: IN WITNESS WHEREOF, the parties have caused their properly authorized representatives to execute and seal this Second Amendment on the date and year below. LANDLORD: City of Arden Hills, Minnesota, a Minnesota municipal corporation TENANT: New Cingular Wireless PCS, LLC, a Delaware limited liability company By: By: Name: Name: Title: Title: Tax Id Date WITNESSED BY: By: By: Name: Name: Title: Title: SCHEDULE I TO SECOND AMENDMENT TO WATER TOWER LEASE AGREEMENT Additional Agreement Terms and Conditions The Lease is amended to include the following terms and conditions: L Expansion of Permitted Use: Landlord hereby agrees, at the direction of Tenant, to allow the Tenant to modify, supplement, replace, upgrade, expand or refurbish the equipment related to the Antenna Facilities, increase the number of antennas thereon or relocate the Antenna Facilities within the Leased Premises at any time during the term ofthis Lease, and Landlord shall cooperate with Tenant in all respects in connection with the foregoing. If Landlord does not comply with the terms of this section, Tenant may terminate this Lease and shall have no further liability to Landlord. Landlord Initial: Tenant Initial: LANDLORD ACKNOWLEDGEMENT CORPORATE ACKNOWLEDGEMENT STATE OF ) ) COUNTY OF ) I CERTIFY that on _, 200_, representative] personally came before me and acknowledged under oath that he or she: (a) is the [title] of the corporation named in the attached instrument, (b) was authorized to execute this instrument on behalf of the corporation and (c) executed the instrument as the act of the corporation. [name of [name of corporation], Notary Public: My Commission Expires: TENANTACKNO~EDGEMENT ) ) SS. ) STATE OF COUNTY OF I certifY that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the of New Cimmlar Wireless PCS. LLC. to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED: Notary Seal (Signature of Notary) (Legibly Print or Stamp Name of Notary) Notary Public in and for the State of My appointment expires: Attachment 7B-4 Cellular Antenna Rates for other Nearby Cities December 12,2006 April 30, 2007, City Council Meeting The cellular antenna lease rates for the cities of Mounds View, New Brighton, Roseville, and Shoreview were collected in December 2006 to compare to the Arden Hills cellular antenna lease rates: Citv Arden Mounds New Company Hills Roseville View Brighton Shoreview Cinoular $12,060 $22,000 $8,200 Shoreview Sorint/Nextel 1 $11,892 $27,371 $15,656 $15,100 leases six Sorint/Nextel 2 $18,221 $15,600 spaces on Sprint/Nextel 3 $9,516 $16,300 their water tower at a Sprint/Nextel 4 $24,396 rate of T-Mobile 1 $13,800 $14,233 $16,656 $16,400 $20,000 T-Mobile 2 $9,900 per Verizon 1 $33,502 $15,791 $22,600 antenna Verizon 2 $18,221 $18,818 $15,000 per year Verizon 3 $23,334 $20,000 Average Yearly Income per Antenna $12,584 $21,199 $16,730 $15,456 $20,000 Average Monthly Income per Antenna $1,049 $1,767 $1,394 $1,288 $1,667 The cellular tower lease rates are based on actual or projected revenue for 2006. The lease rates are affected by the height and location of the tower as well as the need from the cellular provider and the number of people a particular tower can serve. Shoreview and New Brighton indicated that other wireless companies were attempting to negotiate lower lease rates.