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HomeMy WebLinkAboutEDA MIN 09-21-15 ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE SPECIAL MEETING OF SEPTEMBER 21, 2015 IN CONFERENCE ROOM 1 The meeting was called to order at 11:00 AM by Chair Peterson. Members Present: Bruce Nawrocki, Donna Schmitt, Gary Peterson, John Murzyn, and Marlaine Szurek. Staff Present: Walt Fehst, Joseph Hogeboom, and Shelley Hanson. BUSINESS ITEM 1.Approve the First Amendment to the Site Lease Agreement and the Easement Agreement th for the Cell Tower at Parkview Villa (965 40 Ave) on Resolution 2015-20. Hogeboom explained that as part of the negotiation for the sale of Parkview Villa, the City/EDA will be retaining lease revenue from the Parkview Villa cellular antenna. The current lease between the EDA and T-Mobile commenced on January 1, 1997 and will expire on December 31, 2016. The First Amendment to the Site Lease Agreement will authorize the term of January 1, 2017 through December 31, 2027, during which time the EDA will continue to receive all lease revenue from the cell tower. Lease revenue generally increases in amount every year. In 2014, total lease revenue from the Parkview cell tower was $23,375. In order to maintain access to the antenna through the duration of the lease, the EDA must obtain an easement from Aeon. The attached resolution authorizes the approval of the amendment to the lease, as well as the implementation of the easement. Staff was notified on September 17, 2015 that Aeon’s funders are requiring that the easement and lease are approved prior to the sale of Parkview Villa. It had previously been stated that these items would need to be adopted prior to the current lease expiration in 2016. The sale of th Parkview Villa is scheduled to occur on Thursday, September 24, so it was necessary that this special meeting of the EDA be called to immediately address these items. Staff recommends approval of Resolution 2015-20, authorizing approval of the First Amendment to the Site Lease Agreement and the Easement Agreement for the cell tower at Parkview Villa. Questions from Members: Schmitt questioned Page 2 (Section B) of the Lease Agreement where it states that the lease could be extended for a period of 5 years at the end of the term. She wondered if the City would have the option of extending the Agreement. Hogeboom explained that the EDA MINUTES Page 2 Sept. 21, 2015 terminology is in the Agreement, but that it would allow Aeon and T-Mobile to renew the Agreement with the same terms if they chose to do so. Schmitt then asked about #6 and #23 in the Franchise Agreement that addresses the responsible party for any roof damage that may occur from the antenna or from its removal. Hogeboom stated that the City would be the responsible party according to the Franchise Agreement, but that we pass that responsibility along to T-Mobile in the Lease Agreement. Motion by Szurek, seconded by Nawrocki, to waive the reading of Resolution 2015-20, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Szurek, seconded by Nawrocki, to adopt Resolution 2015-20, Resolution Approving the First Amendment to the Site Lease Agreement and the Easement Agreement th for the Cell Tower at Parkview Villa (965 40 Avenue NE). All ayes. MOTION PASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2015-20 RESOLUTION APPROVING FIRST AMENDMENT TO SITE LEASE AGREEMENT AND EASEMENT AGREEMENT FOR CELL TOWER ANTENNA BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The Authority previously entered into a Site Lease Agreement with APT Minneapolis, Inc., dated December 4, 1996 (the “Lease”), for the installation and maintenance of a cell tower antenna on rooftop space located at the building known as Parkview Villa North (the “Facility”). 1.02. Subsequent to entering into the Lease, APT Minneapolis, Inc. transferred its interest in the cell tower antenna and Lease to T-Mobile Central LLC (the “Tenant”). 1.03. The Housing and Redevelopment Authority in and for the City of Columbia Heights (the “HRA”) now intends to convey the Facility to Aeon (“Aeon”), but to allow the Authority to retain its interest in the Lease through a First Amendment to Site Lease Agreement (the “First Amendment”), which will ensure the receipt of lease proceeds by the Authority for an additional 11-year term. EDA Minutes Page 3 Sept. 21, 2015 1.04. Because the HRA will convey its ownership interest in the Facility to Aeon, the Authority and Aeon will also enter into an Easement Agreement (the “Easement”), pursuant to which the Authority will retain its leasehold interest in the Facility for the term of the First Amendment. 1.05. The Board has determined that execution of the First Amendment and Easement as described in this resolution is in the best interest of the City and its residents. Section 2. First Amendment and Easement Approved; Further Proceedings. 2.01. The First Amendment and Easement as presented to the Board are hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Agreement by such officials shall be conclusive evidence of approval. 2.02. Authority staff and consultants are authorized and directed to deliver the executed First Amendment and Easement to the HRA in connection with the conveyance of the Facility to Aeon. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 21st day of September, 2015. President ATTEST: Secretary th Hogeboom noted that the next meeting will be held on Monday, October 12 at 6:15 pm due to a th conflict for the regular night of October 5. The meeting was adjourned at 11:13 am. Respectfully submitted, Shelley Hanson Recording Secretary