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Prior Lake. MN 55372
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CITY COUNCIL AGENDA REPORT
MEETING DATE: APRIL 8, 2013
AGENDA #: 5E
PREPARED BY: JERILYN ERICKSON, FINANCE DIRECTOR
PRESENTED BY: JERILYN ERICKSON
AGENDA ITEM: CONSIDER APPROVAL OF A CONSENT FOR ASSIGNMENT ON BEHALF OF
TMOBILE CENTRAL LLC TO T-MOBILE USA TOWER LLC
DISCUSSION: Introduction
The purpose of this agenda item is to consider granting T-Mobile the right to
transfer its rights as it relates to the certain Standard Civil Defense Pole Tower
Agreement entered in on August 1, 2008.
Histo
The City of Prior Lake entered into a lease agreement with T-Mobile on August 1,
2008 which allowed T-Mobile to install, operate and maintain three antennae on
the civil defense tower located in Willows 3` Addition. T-Mobile has paid the City
$6,000 annually for years 2008-2013 to locate their antennae on this location.
The annual fee increases incrementally every five years during the term of the
Agreement. The initial term of the Agreement was five years and will automatical-
ly be extended for three (3) additional five (5) year terms subject to provisions
within the Agreement.
Current Circumstances
T-Mobile has requested that the rights as it relates to the aforementioned Agree-
ment be assigned to T-Mobile USA Tower LLC. Per the Agreement dated August
1, 2008, T-Mobile may not assign or pledge its rights or delegate its duties without
the City's prior written consent.
Conclusion
The Council should consider granting the assignment.
ISSUES: The City Attorney has reviewed the attached "Consent and Acknowledgement of
the City of Prior Lake" document.
FINANCIAL The obligation to pay the annual rent will be assigned to T-Mobile USA Tower
IMPACT: LLC. There should be no interruption in payments nor are there any changes in
the amounts to be paid or any other obligations of the original Agreement.
ALTERNATIVES: 1. Motion and second to approve the Consent of Assignment and Acknowledge-
ment of the City of Prior Lake.
2. Direct the Staff to prepare additional information for City Council consideration
at a future meeting.
RECOMMENDED Alternative #1
MOTION:
CONSENT AND ACKNOWLEDGMENT OF THE CITY OF PRIOR LAKE
The City of Prior Lake, Minnesota, a municipal corporation (hereinafter the "City"),
hereby consents to the assignment on behalf of T-Mobile Central, LLC (hereinafter "T-
Mobile") to T- Mobile USA Tower LLC (hereinafter "T-Mobile Tower") and that
certain Master Prepaid Lease By and Among T-Mobile USA Tower LLC, T-Mobile
West Tower LLC, T-Mobile USA, Inc. and CCTMO LLC dated November 30, 2012
(hereinafter referred to as the "Master Prepaid Lease") as it relates to that certain
Standard Civil Defense Pole Tower Agreement entered into the 1 st day of August, 2008
by and between City and T-Mobile (hereinafter referred to as the "Lease"). The
foregoing consent shall in no event be deemed a waiver of any other terms and conditions
of the Lease, and any assignee of the rights under the Lease shall be fully bound by and
subject to the provisions of the Lease. The City is executing the foregoing solely for the
purpose of consenting to the assignment of T-Mobile's interests in the Lease and by
such execution is not to be otherwise deemed to be bound by the terms of said
Assignment, the Master Prepare Lease or a party thereto. Nothing contained herein shall
be deemed to and City does not hereby release T-Mobile of any obligations or
liabilities arising under said Lease.
CITY OF PRIOR LAKE
a Minnesota municipal corporation
By:
Name:
Its: Mayor
By:
Name:
Its: City Manager
STATE OF MINNESOTA )
) ss.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of April,
2013, by Kenneth L. Hedberg and Frank Boyles, as Mayor and City Manager,
respectively, of the City of Prior Lake, a Minnesota municipal corporation, on behalf of
the corporation.