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7.2. EDSR 12-16-2019Request for Action To Item Number Economic Development Authority 7.2 Agenda Section Meeting Date Prepared by General Business December 16, 2019 Amanda Othoudt, EDD Item Description Reviewed by Verizon Wireless Temporary Cell Tower Site Lease Cal Portner, City Administrator Agreement Reviewed by Action Requested Approve, by motion, the execution of a lease agreement to install a temporary cell tower on the property located at 17610 Tyler St. NW. Background/Discussion Verizon Wireless is proposing to install a temporary cell tower on property owned by the EDA at 17610 Tyler St. NW. Verizon Wireless is currently located on property owned by Great River Energy (GRE); however, they are in the process of decommissioning their plant. A temporary site will allow Verizon Wireless to maintain wireless service in Elk River while they move off their existing site to a permanent location on a nearby, existing cell tower. Verizon Wireless is seeking to secure zoning approval this evening from the city through an Interim Use Permit (IUP) to install a temporary cell tower on the property. Verizon Wireless is requesting the approval of a temporary lease agreement. At minimum, Verizon may need the temporary site for 6 months; at most, 24 months. The expense to build, operate, maintain, and eventually remove the site/equipment and restore the property would all be done at Verizon Wireless’s expense. The lease will automatically renew for up to 3 additional 6-month terms unless either party provides written notice of non-renewal to the other at least 60 days prior to expiration of the then-current term. After the initial term, either party may terminate the agreement on sixty (60) days written notice to the other party. Upon termination or non-renewal of this Agreement, Lessor shall retain all amounts paid, and Lessee shall promptly remove its Facility and all other equipment and improvements and fully restore the Property to its original condition. Verizon Wireless will pay, in advance, monthly rent in the amount of $700.00. The initial monthly payments shall be paid within ninety (90) days of full execution of the agreement. This is a change to the previously discussed $4,000 lump sum. This turns out to be a slight increase in rent ($4,200 for six The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity months instead of $4,000). The change from lump sum to monthly payments is easier for Verizon Wireless to administer. This change means there will be no excess rent for the city to retain if the lease is terminated by the lessee early. There is no financial disincentive to terminating early. The lease has also been updated to clarify that the EDA may assign the lease (and rent) to any buyer of the property, should it be sold during the time that Verizon Wireless is occupying the property. City approval of the IUP does not give Verizon Wireless the authorization to install any temporary structures on the property without an executed lease, and vice versa. Financial Impact A temporary lease will add $700 per month in the general EDA Fund. Attachments  Aerial Photo of Site  Temporary site lease agreement  Site Plan 37 6.2 © Bolton & Menk, Inc - Web GIS 0 Legend 17610 Tyler Street NW This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information, and data located in various city, county, and state offices, and other sources affecting the area shown, and is to be used for reference purposes only. The City of Elk River is not responsible for any inaccuracies herein contained. Disclaimer: 10/17/2019 3:00 PM 263 Feet City Limits Urban Service Area Parcels (1-24-2017) Park Areas SITE NAME: STC Elk River Temp LEASE AGREEMENT AND TEMPORARY ACCESS RIGHT-OF-WAY AND UTILITY EASEMENT This Agreement made this ______ day of _______________, 20___, between the City of Elk River, a Minnesota municipal corporation, with a rent payment address of ???????? 13065 Orono Parkway, Elk River, MN 55330, hereinafter referred to as “Lessor”, and Verizon Wireless (VAW) LLC d/b/a Verizon Wireless, with its principal office located at One Verizon Way, Mail Stop 4AW100, Basking Ridge, New Jersey 07920 (telephone number 866-862-4404), hereinafter referred to as “Lessee”. 1. Lessor does hereby grant unto Lessee a lease to use a seventy-five (75’) by seventy-five (75’) parcel located at 17610 Tyler Street NW, Elk River, MN 55330, which parcel is hereinafter referred to as the “Property”, and which is further described on Exhibit A attached hereto and made a part hereof. Such lease grants the Lessee the right to place upon the Property a communications facility including a temporary cell-on-wheels and one hundred and twenty (120) foot monopole tower (“Facility”) and associated antennas and equipment all as depicted in Exhibit B attached hereto and made a part hereof. The Lessor also grants unto the Lessee a non- exclusive right-of-way for ingress and egress, seven (7) days a week, twenty-four (24) hours a day, on foot or motor vehicle, including trucks, along with .the right to install and maintain buried conduits, pipes, cables and wires to its Facility within the Property as necessary to supply utility service and power to the Facility or as otherwise needed to service the Facility as reasonably determined by Lessee, all as depicted on Exhibit B. 2. Lessee represents, warrants and agrees that it will conduct its activities on the Property in compliance with all applicable environmental laws and regulations and all applicable laws and regulations governing Lessor’s communications business activities. Lessor represents that, to the best of its knowledge, the Property is free of hazardous substances as of the date of this Agreement. Each party agrees to indemnify and hold the other harmless from and against any and all claims and liabilities that the indemnitee may suffer due to any Hazardous Substance as defined in any applicable federal, state or local law or regulation, on the Property, or released from the Property, that relates to or arises from the indemnitor’s activities during or prior to the term of this Agreement. Notwithstanding the foregoing, Lessee shall not be liable for any environmental condition except to the extent Lessee causes the condition or exacerbates a condition of which it has reason to be aware. STC Elk River Temp COW Agreement 5879532v15879532v1 1 Formatted: DocID 3. The initial term of this Agreement shall be for the period of six months commencing on the first day of the month following the full execution of this Agreement (the “Commencement Date”). This Agreement shall automatically renew for up to 3 additional 6- month terms unless either party provides written notice of non-renewal to the other at least 60 days prior to expiration of the then-current term. In addition to the foregoing, after the initial term, either party may terminate this Agreement on sixty (60) days written notice to the other party. Upon termination or non-renewal of this Agreement, Lessor shall retain all amounts paid, and Lessee shall promptly remove its Facility and all other equipment and improvements and fully restore the Property to its original condition. 4. The Lessee shall pay to the Lessor, in advance, monthly rent in the amount of $700.00. The initial monthly payments shall be paid within ninety (90) days of full execution of this Agreement. 5. Lessor and Lessee shall indemnify and hold the other harmless against any claim of liability or loss from personal injury or property damage resulting from or arising out of the negligence or willful misconduct of the indemnifying party, its employees, contractors or agents, except to the extent such claims or damages may be due to or caused by the negligence or willful misconduct of the other party, or its employees, contractors or agents. Lessee shall maintain at its own expense during the term of this Agreement, commercial general liability insurance with a combined single limit of $1,500,000.00 for bodily injury and property damage. The Lessee shall provide a certificate of insurance to the Lessor as proof of said coverage. Except with respect to the indemnification set forth in this paragraph, neither party shall be liable to the other, or any of their respective agents, representatives, employees for any lost revenue, lost profits, loss of technology, rights or services, incidental, punitive, indirect, special or consequential damages, loss of data, or interruption or loss of use of service, even if advised of the possibility of such damages, whether under theory of contract, tort (including negligence), strict liability or otherwise. 6. Lessor covenants that Lessee, upon paying the amount set forth herein and performing the covenants set forth herein, shall peacefully and quietly have, hold and enjoy the Property. Further, Lessor covenants that Lessor is seized of good and sufficient title and interest to the Property and has full authority to enter into this Agreement. 7. This Agreement may be sold, assigned or transferred by Lessee to Lessee’s principal, affiliates, subsidiaries of its principal or to any entity which acquires all or substantially all of Lessee’s assets the market defined by the Federal Communications Commission in which the Property is located by reason of a merger, acquisition or other business reorganization, without the consent of the Lessor. As to any other parties, any sale, assignment or transfer must be with the written consent of the Lessor, which consent will not be unreasonably STC Elk River Temp COW Agreement 5879532v15879532v1 2 Formatted: DocID withheld. Should Lessor decide to sell the Property, such sale shall be subject to this Agreement and Lessor may assign this Agreement to the purchaser without the consent of the Lessee. 8. All notices hereunder must be in writing and shall be sent certified mail, return receipt requested, to: LESSOR: TO BE INSERTEDCity of Elk River Economic Development Authority Attn: Economic Development Director 13065 Orono Parkway Elk River, MN 55330 LESSEE: Verizon Wireless (VAW) LLC d/b/a Verizon Wireless 180 Washington Valley Road Bedminster, New Jersey 07921 Attention: Network Real Estate Signatures on following page Remainder of page intentionally left blank STC Elk River Temp COW Agreement 5879532v15879532v1 3 Formatted: DocID IN WITNESS WHEREOF, the parties hereto have set their hands and affixed their respective seals the day and year first above written. LESSOR: LESSEE: CITY OF ELK RIVER Verizon Wireless (VAW) LLC d/b/a Verizon Wireless By: Name: By: _________________________________ Its: Mayor Name: _______________________________ Its: __________________________________ By: Date:________________________________ Name: Its: City AdministratorCity Clerk Remainder of page intentionally left blank STC Elk River Temp COW Agreement 5879532v15879532v1 4 Formatted: DocID Exhibit A Description STC Elk River Temp COW Agreement 5879532v15879532v1 5 Formatted: DocID Exhibit B Site Plan STC Elk River Temp COW Agreement 5879532v15879532v1 6 Formatted: DocID EXISTING PIPELINE EASEMENT �gkFs Rpgo NP, EXISTING SIDEWALK (TYP.)— I I I I LESSEE 75' X 75' PREMISES o� I II PROPOSED VZW EQUIPMENT COMPOUND (SEE SS -2) I` EXISTING PROPERTY LINE (TYP.) I I o i I I EXISTING BUILDING h 'V I I � 0 SITE PLAN SCALE: 1" = 80'-0" GRAPHIC SCALE 0 40- e0' EXISTING ELECTRICAL MARKER EXISTING FIBER HAND HOLE EXISTING BITUMINOUS PAVED ROAD (TYP.) 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