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Home My WebLink AboutRes2010-062 Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -062 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AMENDMENT TO THE LEASE AGREEMENT 94 -093 WITH DCS TOWER SUB, LLC, AS SUCCESSOR IN INTEREST TO MCCAW CELLULAR COMMUNICATIONS, INC FOR LOT 1, BLOCK 8, FOURTH OF JULY SUBDIVISION, SEWARD MARINE INDUSTRIAL CENTER, FOR THE PURPOSE OF EXTENDING THE TERM OF THE LEASE TO JUNE 30, 2015 WHEREAS, DCS Tower Sub, LLC, successor in interest to McCaw Cellular Communications, Inc., ( "Lessee ") has requested a lease term extension to its existing lease agreement with the City of Seward for 1,320 square feet, more or less, within Lot 1, Block 8, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough Plat number 97 -27, Seward Recording District, Third Judicial District, State of Alaska; and WHEREAS, the current lease has been in effect since September 12, 1994 and the Lessee has submitted a request for an extension of the lease term in accordance with Section 2.4 of the Lease; and WHEREAS, Section 2.4 of the Lease provides that the Lessee shall have the right to extend the initial term of the Lease for three additional five -year periods provided that Lessee exercise the option to extend at least 180 days prior to the expiration of the then current Lease term, Lessee is not in default, and the Seward City Council approves the extension by resolution; and WHEREAS, this is the final extension allowed by the original Lease, however this lease amendment acknowledges the Lessee shall have the right, at the Lessee's option to further extend the Lease Agreement for three (3) additional periods of five (5) years each beginning on July 1, 2010 for possible options to extend until June 30, 2030; and WHEREAS, the amendment recognizes the previous assignment by Dobson Cellular to its affiliate DCS Tower Sub, LLC and includes a 3% annual rent increase. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to enter into an amendment of the lease agreement with DCS Tower Sub, LLS, as successor in interest to McCaw Cellular Communications, Inc., in substantial form as presented at this meeting, to extend the Lease term to June 30, 2015 and to include amendments to the Lease as described in the above recitals. CITY OF SEWARD, ALASKA RESOLUTION 2010 -062 Section 2. This resolution shall take effect thirty (30) days after its adoption and posting. Upon effectiveness of this resolution, the amendment will be effective July 1, 2010. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 26 day of July, 2010. THE CITY 0 SEWARD, ALASKA • illard E. Dunham, Mayor AYES: Valdatta, Bardrson, Smith, Shafer, Amberg, Dunham erj NOES: None ABSENT: Keil ABSTAIN: None ATTEST: Je. r Lewis, Ci Clerk .\....,,� (City Seal) �� OF 3 `4w'�l s .Qa a • • tisoi ...... .... . OF PvP •NI A\\ \ \ \� Council Agenda Statement Meeting Date: August 9, 2010 e ,� O sett $. ,..,4, u � Through: Phillip Oates, City Manager From: Kari Anderson, Harbormaster Subject: Lease Amendment for DCS Tower Sub 94 -093 BACKGROUND & JUSTIFICATION: Initially, McCaw Cellular Communications, Inc., entered into a lease with the City for 1,320 square feet, more or less, within Lot 1, Block 8, Fourth of July Creek Subdivision, Seward Marine Industrial Center. This leased area encompasses a cell phone tower and associated electric infrastructure. The Lessee's interests were assigned several times, and in 2005 Resolution 2005 -23 extended the term of this lease (now with Dobson Cellular) through June 30 2010. Article 2.4 of this lease provides that the Lessee shall have the right to extend the initial term of the Lease for three additional five -year periods, with a final extension option to June 30, 2015. This proposed lease extension would be the third and final extension allowed under the current lease. However, the proposed amendment language would allow for three additional options for extensions of five years each, for possible options to extend until June 30, 2030. The amendment also includes an annual rent increase and recognizes the assignment of Dobson Cellular to its affiliate, DCS Tower Sub, LLC. INTENT: To propose an extension of the current lease with DCS Tower Sub, LLC, as successor to the original lessee McCaw Cellular Communications, Inc., #94 -093 for an additional five years, ending June 30, 2015. CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures or Other Plans or Policies: Yes (List Below) No Seward Marine Industrial Center Development Plan Land use: Uses allowed within SMIC should focus on strengthening and enhancing the area as a center for marine and other compatible industries. FISCAL NOTE: The Lease Agreement was amended to add language to Section 3.5 regarding interim rental adjustments of 3% for each year in the period between each Rental Adjustment Date. Approved by Finance Department: ATTORNEY REVIEW: YES X NO RECOMMENDATION Council approve Resolution 2010 - a pproving the extension of lease number 94 -093 with DCS Tower Sub, LLC to June 30, 2015 and amending the lease. i1 a V"`tir r ,,,. • Q:1] r � ' / ‘ !1 ') `n l (g, it =_ 7v , ; :;', 7 C L 5� l J ,J it t v/ u 5 S2 � f �\ .c.,,.. ;; (1-6) � d T Cl r�1, «`1 vcNrr j�_ S 3 MAP Resurrection , _,v Bu "' ;Est, - Vi i' .17.1, ♦ ice Bay e L . <1 3 - t J [171,3- lEa., 111.54 Ne9'2507, 2. 8.9 \ �SHIF e9� E ...,,. ,� v � tk II IC AlE � I E N t\ l - I and :F[`IL H lU �. , \ y _ .— _ . , . ._ - C/ h�. 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