HomeMy WebLinkAboutDocumentation_Workshop_Tab 06_2/3/2020Agenda Item #6.
Workshop
STAFF
MEMO
Meeting: Workshop - Feb 03 2020
Staff Contact: Keith Davis, Village Attorney Department: Legal
ITMEM
Discussion Regarding Proposal for New Lease Agreement at 136 Bridge Road Cell Tower with
American Tower
Discussion of proposal for extended lease agreement with American Tower at 136 Bridge Road cell
tower site.
Discussion of proposal for extended lease agreement.
Teguesta - American Tower Agreement -Memo FINAL
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Agenda Item #6.
0 DAVIS&
iM A�'-)HTON PA.
Keith W. Davis, Esq.
Florida Bar Board Certified Attorney
Ci ft/, County and Local Government Lazo
Email: keith@davisashtonlaw.com
TO: Village Manager Allen
FROM: Village Attorney Davis
DATE: January 20, 2020
RE: American Tower Proposed Amended Lease Agreement 136
Bridge Road Tower
MEMORANDUM
On September 18, 2009, the Village of Tequesta and American
Tower Corporation effectuated a lease agreement whereby the
Village leases a portion of its property at 136 Bridge Road to
American Tower for use as a telecommunications tower with
related ground equipment. The current lease agreement expires
on September 18, 2039; however, American Tower has offered a
new amendment to the current lease agreement that would
among other things, both extend the lease term period and
increase rent paid to the Village. The following explain the key
changes to the current lease agreement proposed by the new
amendment
1. Term and Termination: The current lease agreement has
a 30-year term, expiring on September 18, 2039. The new
amendment proposes to extend the term an additional 30
years through 2069. There is no termination for
convenience provision for the Village in the new
amendment (nor is there one in the current lease
agreement). Rather, under the new amendment, the
Village may terminate the lease only for cause, (in the
event of a "material default" and upon 60 days' written
notice). Alternatively, American Tower retains rights to
701 Northpoint Parkway, Suite 205, West Palm Beach, FL 33407 1 p 561-586-
7116 1 f 561-586-9611
www.daz,isashtonlaw.com
♦ LEADING ATTORNEYS IN LOCAL GOVERNMENT LAW AND
ETHICS
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Agenda Item #6. terminate the lease agreement at will, upon 180 days
written notice. Note that this type of termination scheme is
not uncommon with cell tower uses. Therefore, the new
amendment would lock the Village in to what amounts
to a 50-year term.
2. Rent and Escalation: The current lease agreement
provides a base rent of $2,500.00 per month and was
slated this year (2019) to begin an annual increase of 1.5%
per year, until the lease expiration in 2039. The new
amendment proposes a new base rent of $2,562.00 per
month with annual increases of 2.5% beginning on Sept.
18, 2019. Then, beginning in September 2020 this monthly
rent would increase 2.5% per year each year thereafter.
The new amendment also offers a one-time "signing
bonus" of $22,500.00 upon execution of the new
amendment.
3. Miscellaneous: We are also finalizing negotiations
regarding miscellaneous boilerplate terms regarding
indemnification and securitization which we expect to end
successfully.
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