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MAYOR <br />13111 lllesener <br />COUNCIL <br />Rick Montour <br />Barbara .Allan <br />John Kets <br />Michael McGraw <br />515 Little Canada Road, Little Canada, MN 55117-1600 ADMINISTRATOR <br />(651) 766 -4029 / FAX: (651) 766 -4048 Jo<:l R. Hanson <br />www.cilittle-canada.mn.us <br />MEMORANDUM <br />TO: Mayor Blesener & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: February 8, 2008 <br />RE: Water Tower Lease With T- Mobile <br />Attached is a proposed lease with T- Mobile for the placement of nine (9) antennas on the water tower. <br />This would be the second company with placement of facilities on the tower. (The other is with AT &T <br />Wireless.) They will also need an outbuilding for controls. <br />The terms of this lease are essentially the same as the AT &T lease including the rental rate ($1,687.08 per <br />month), the escalator clause (4% per year), and the term (five year term with five, five -year options). The <br />key differences are as follows: <br />✓ The lease includes a four -month option whereby the tenant has the opportunity to complete its due <br />diligence. They will pay $500 for this option. It is my understanding they have already bid this <br />project, so it is very likely they will proceed with placement of equipment this spring. <br />✓ There are a couple of additional termination provisions relating to continued acceptability for use <br />with 180 days notice, the city's decision to redevelop the property or eliminate the water tower, or <br />structural inadequacy. <br />✓ Insurance limits will be increased over the $1,000,000 aggregate amount. <br />✓ Includes provision for surety bond to cover costs of equipment removal /restoration if lease is <br />terminated. <br />✓ Assignment provisions have been modified somewhat to allow assignment to tenant's affiliates or <br />subsidiaries or any merger partner without our consent. All other transfers will require our consent. <br />I'm also attaching a plan sheet to give you an idea of the placement of their accessory structure. (Please <br />note that the reference to "easements" will be deleted, as we will not be granting any easements, only right <br />of access /use during the lease term. <br />I will have the City Attorney look this over prior to Wednesday's meeting. Pending his approval, staff <br />would recommend the approval of the lease with T- Mobile as presented. <br />1 <br />