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96-22056 RESO RESOLUTION NO, 96-22056 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT WITH TOWER 41 ASSOCIATION, INC., FOR THE USE OF CERTAIN ROOM AND ROOF AREAS FOR THE PLACEMENT AND OPERATION OF PUBLIC SAFETY COMMUNICA TIONS EQUIPMENT. WHEREAS, since 1987 the City has entered into one-year lease agreements with Tower 41 Association, Inc., for use of certain room and roof areas for the placement and operations of certain public safety communications equipment; and WHEREAS, since then, such agreements were automatically renewed each year; and WHEREAS, changes in the State telecommunications laws have permitted an increased number of cellular telephone service providers; and WHEREAS, such actions have resulted in the increased demand for premium roof areas for locating necessary microwave antennae; and WHEREAS, in acknowledgment of the importance of assuring continuous non-interference of the City's public safety communications system to the health and safety of our citizens, visitors, and public safety employees, the City is desirous of entering into long term agreements for existing room and roof areas; and WHEREAS, the President and members of the Board of Directors of Tower 41 Association Inc" are desirous of continuing their contribution and commitment to the health and safety of our citizens, visitors and public safety employees and, to that end, have negotiated the attached Lease Agreement with the City. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk are authorized to execute the attached Lease Agreement with Tower 41 Association, Inc., for use of certain room and roof areas for the placement and operation of certain public safety communications equipment. PASSED and ADOPTED, this 17th day of July ,1996. Attest: ~ 0 WA~ ftAA.~ City Clerk \~t~-~ VICE-Mayor luHM APPROVi:.u PFLme LEGAL DEPT. ByAlf ~~ r.."te .2l.J 1/1 L.. . CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 COMMISSION MEMORANDUM NO. -4 -z. ~ - 9<.0 TO: Mayor Seymour Gelber and Members of the City Commission DATE: July 17, 1996 FROM: Jose Garcia-Pedrosa City Manager SUBJECT: A RESOLUTION A THORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT WITH TOWER 41 ASSOCIATION, INC., (TOWER 41) FOR THE USE OF CERTAIN ROOM AND ROOF AREAS FOR THE PLACEMENT AND OPERATION OF PUBLIC SAFETY COMMUNICATIONS EQUIPMENT. RECOM1v1ENDA TION Adopt the Resolution BACKGROUND - TOWER 41 Since 1987, the City of Miami Beach has had a one-year agreement with the Tower 41 Association, Inc., (Tower 41) for the placement and operation of certain public safety radio equipment in the equipment room and roof area of the condominium building; this agreement was automatically renewed each year. There are no lease payments associated with this agreement; however, the agreement was amended to provide for fixed monthly reimbursements of$365.00 for electricity, Early in 1995, Tower 41 representatives advised the City that they had been approached by a number of commercial cellular telephone service providers, to lease roof space for the placement of microwave. In recognition of the commercial value of roof area, Tower 41 requested that their agreement with the City be renegotiated. Since then, the City has been in negotiations with representatives of Tower 41. BACKGROUND- P ARKVIEW POINT On March 6, 1987, the City of Miami Beach entered into a similar agreement with the Parkview Point Condominium Association, Inc. (Parkview). Similarly, the City agreed to monthly reimbursements of$265.00 for electricity. Agenda Item C-'l~ Date Tower 41 Association, Inc. July 17, 1996 Page - 2- In 1992, Parkview gave notice of termination to the City. The concerns relative to microwave radiation were addressed by the City, resulting in Parkview's Board of Directors rescinding their earlier decision. At that time, the estimated cost to relocate the radio equipment was $500,000, if a suitable site could be found. In 1995, Parkview, again, gave notice of termination to the City. The concerns relative to microwave radiation and the commercial value of the roof area to cellular telephone operators were addressed by the City, resulting in the Board of Directors rescinding their earlier decision. Since then, the City has been involved in contract negotiations with the Parkview for a long-term contract. In early 1996, the Parkview Board of Directors rejected the City's proposal for a long-term agreement and insisted that it remain a one-year term, Concurrently, they re-instated the Notice of Termination, unless the City met their terms. Subsequently, the City located an alternate site at LaGorce Palace and has since installed new microwave equipment as part of the PCS PrimeCo relocation agreement. The City will be removing the equipment located at Parkview following the expiration of the Notice of Termination or the successful relocation of the microwave equipment, whichever occurs first. CONTRACT TERMS During 1995, negotiations between the City and representatives of both Tower 41 and Parkview Point were conducted both individually and concurrently. At the beginning of negotiations, all parties agreed that the continued non-interference to the public safety communications system was of utmost importance to the welfare and safety of the citizens, visitor and public safety employees. This acknowledgment would result in the retroactive implementation of the terms of any final agreement. Subsequent negotiations with Parkview were terminated. The major terms of the agreement with Tower 41 are: 1. EFFECTIVE DATE - Retroactive to annual renewal date (March 1995). 2. TERM - Twenty (20) years beginning on the Effective Date. City has the exclusive right to cancel by giving 360 days notice. 3. RENT - Tower 41 - $13,500 annually (Total of 587 sq.ft.). Annual CPI increase, not to exceed three percent (3%). 4. ELECTRICITY - City will sub-meter and reimburse costs for actual consumption, 5. OTHER - Landlord shall not lease other roof space for other purposes, if such purposes would interfere with the operations of the City's public safety radio communications. The complete agreement is contained herein as Attachment A. Tower 41 Association, Inc. July 17, 1996 Page - 3- ANALYSIS The radio equipment located in Tower 41 provides the vital microwave link to ensure continuous public safety radio communications between the northern and mid-beach areas with the central dispatch center located in the Police Headquarters Building. Relocation of the equipment would require the City to apply to the Federal Communications Commission (FCC) for new microwave frequencies and the certification that such frequencies would not interfere with other existing commercial licensees. The long term agreement (20-years) provides the City with the non-interference and guarantee required for the continuous operation of the public safety communication system. The lease payment consideration acknowledges the value of the roof area to commercial cellular telephone operators and prevents the City from possibly having to relocate its equipment. ACKNOWLEDGMENT The Administration wishes to acknowledge and thank Murray Dinerstein, President; Stanley Esko, Property Manager; and the members of the Board of Directors of Tower 41 Association, Inc., for their hard work and dedication to negotiating this Lease Agreement that will ensure the non- ill ;terference required for the continuous operation of the City's public safety communication system. ~v PFL:me LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND TOWER FORTY-ONE ASSOCIATION, INC. This Agreement (herein this 17th day of July ~, (LANDLORD) and the Corporation of the State of after designated as "Agreement") made ,199~ between Tower 41 Association, City of Miami Beach. a Municipal Florida TENANT) . In consideration of the execution of this Agreement, the mutual terms, covenants and conditions contained herein and other good and valuable consideration, the receipt of which is hereby acknowledged from one party to the other, the LANDLORD and TENANT agree as follows: 1. PREMISES: LANDLORD hereby leases to TENANT and TENANT hereby leases from LANDLORD, a portion of the building of the LANDLORD (Building) located on that certain real property of LANDLORD known as 4101 Pine Tree Drive, Miami Beach, FL 33140, County of Dade, State of Florida (the Parent Tract). The portion of the Building hereby leased to TENANT consists of certain positions on the roof of the Building for the mounting of various antennas, associated equipment, and microwave dishes, hereinafter referred to as the "Rooftop Space", together with that certain space consisting of UQ square feet of rentable building space located on the 18th Floor of the Building, and one (1) room, hereinafter referred to as the "Equipment Room Space", located above the 18th floor, which consists of .15...l square feet. The Rooftop Space shall be those certain positions on the roof of the building upon which TENANT'S equipment is mounted, which shall be at sufficient height, now or in the future, so that the signals transmitted and received thereby will not be impeded by the Building or any other structure mounted thereon. The exact location on the building roof will be mutually agreed upon by LANDLORD and TENANT, based upon TENANT'S radio propagation tests and other activities of a similar nature to determine TENANT'S need. The Rooftop Space and the Equipment Room Space are hereinafter collectively referred to as the "Leased Site" and shall be more particularly described in Exhibit "A" which shall be attached hereto and made a part hereof. LANDLORD grants TENANT, at TENANT'S sole expense, the right to survey the Leased Site and to substitute the survey legal T41A -1- descriptions of the Rooftop Space and the Equipment Room Space. LANDLORD agrees that, during the Term of this Agreement, TENANT shall have a non-exclusive easement for access to the Leased Site on a 24 hour basis, seven (7) days a week and across that portion of the Parent Tract and the Building necessary to access the Leased Site from the nearest public right-of-ways adjacent to the Parent Tract, for the purposes of installation, maintenance, repair and removal of the Communications Equipment, as said term is hereinafter defined. TENANT' S representatives and designated vendors servicing TENANTIS Communications Equipment shall also be allowed access to said property when service is needed; provided, however, that Tenant agrees that all routine maintenance and repairs shall be performed Monday thru Friday, 9:00 am to 5:00 pm, except in cases of emergency, in which case, the provisions of the preceding sentence shall apply. TENANT further agrees that any employee, contractor, subcontractor, representative or agent directed by TENANT to install, maintain, remove or repair TENANT'S Communications Equipment will be covered by the liability policy described in Paragraph 7 of this Agreement. TENANT is responsible for the cost of such activities. In the event that LANDLORD proposes to lease roof space and/or room to another vendor, said vendor shall conduct, at its sole cost and expense, an engineering study to determine if vendor's equipment transmits radio waves which interferes with TENANT's 800MHz public safety communications system and/or microwave receiver and transmitter equipment. If the study reveals that such interference occurs or is likely to occur, the vendor will not be allowed to set up his equipment on the premises. If the study reveals no interference and the vendor is allowed to operate equipment on the premises, but later vendor's equipment is found to interfere with TENANT1S equipment, the vendor's equipment will be shut down until the vendor corrects the interference problem. Said vendor(s), at its sole cost and expense, shall take all necessary steps to correct and eliminate such interference, which may include the addition of nonperformance degrading equipment to the vendor's equipment causing said interference. If such interference cannot be eliminated, TENANT may terminate the Agreement without further obligation on either party with respect to such equipment. All other vendors, if there are any, must operate all of their T41A -2 - equipment under the guidelines of the Federal Communications ,!, Commission (FCC) and be in compliance with all the applicable rules and regulations, including obtaining an FCC license prior to operating said equipment. TENANT shall be responsible to the LANDLORD for payment of electricity utilized by the TENANT. Payment of electricity utilized during the previous month shall be made to the LANDLORD with the current monthly rent payment. Calculation of the payment shall be based on the actual kilowatt hours used times an average rate per kilowatt hour and any applicable demand charges. An electrical sub-meter installed by the TENANT will determine the actual usage. The rate per kilowatt hour will be determined annually as of October 1st., using Florida Power & Light (FP&L) current billing rates and billing structure for the LANDLORD IS building. The TENANT will notify the LANDLORD in writing, in the format prescribed in Exhibit "B", of the average rate per kilowatt based on FP&L's information. TENANT agrees to provide for the installation and maintenance of air conditioning equipment of the approximate size of 14" by 3611 by 72". Said air conditioning equipment shall be installed from the ceiling of the laundry room adjacent to the Equipment Room Space and shall be installed from the ceiling of the laundry room adjacent to the Equipment Room Space and shall be used to condition the air of both the laundry room and TENANT'S Equipment Room Space. Tenant shall also be responsible for payments of any other utilities and other expenses whatsoever which are incurred by either Tenant or Landlord relative to Tenant1s installation and usage of the reserved site. 2. TERM: The term of this Agreement shall be for twenty (20) years beginning on the 8th of March, 1995. TENANT shall have the right to cancel this Agreement, at its sole discretion, without cause and for convenience, at any time by giving LANDLORD three hundred sixty (360) days written notice in advance of said cancellation. 3 . RENT: T41A -3- A. During the first (1st) year of this Agreement, TENANT shall pay an annual rental payment in the amount of Thirteen Thousand Five Hundred and 00/100 Dollars ($13,500.00), in equal monthly installments, plus applicable sales tax, to be paid on the first (1st) day of the month, in advance, to LANDLORD or its written designee. B. Beginning with the second year of this Agreement, and for each successive year that this Agreement shall remain in effect, the monthly rental payment for each successive year shall be increased by the Consumer Price Index (CPI), but in no event to exceed 3 percent, at the commencement of each such year. 4. IlSL LANDLORD hereby grants permission to TENANT to install and operate the following and associated equipment on or in the Leased Site for the purposes of constructing, maintaining and operating a communications facility and uses incidental thereto: A. Transmitters, antennas, UPS System, UPS Batteries and Battery Chargers, microwaves dish(es), and similar devices to be located in, on or over the Rooftop Space, now or any time during the Term of this Agreement. B. Flexible coaxial transmission lines between antennas and communications equipment, to be anchored and installed on the Leased Site in accordance with good and accepted engineering practices, together with the right to run such lines and other necessary lines between the Rooftop Space and the Equipment Room Space. C. Radio transmitter, installed in Communications, equipment consisting of receiver, accessories and other property to be the Equipment Room Space. D. At TENANT'S option, TENANT shall have the right to locate an emergency generator at a place mutually acceptable with LANDLORD on the Parent Tract. Further, LANDLORD agrees that, in an emergency, TENANT shall be permitted to run temporary lines between the Rooftop Space and the Equipment Room Space necessary to provide temporary emergency electrical power. For the purposes of this Agreement, all of TENANT'S equipment, T41A -4- building, panels, generator, cables, wires, antennas, microwave dishes and accessories shall hereinafter collectively be referred to as the "Communications Facility" and any improvements made by the TENANT to the Leased Site pursuant to the terms of this Agreement are hereinafter referred to as the "Improvements". LANDLORD hereby acknowledges and agrees that the Communications Facility and Improvements placed upon the Leased Site by the TENANT are and shall remain the property of the TENANT and shall not be deemed to be a fixture upon the Leased Site. LANDLORD grants TENANT a non-exclusive easement in, over, across and through the Parent Tract as may be reasonably required during construction, installation, maintenance, repair, replacement and operation of the Communications Facility and the Improvements. Upon termination of this Agreement, TENANT shall, remove its Communications Facility and Improvements from the Leased Site within ninety (90)days of the termination date and, in the event that the Communication Facility is transferred to another site, then within ninety (90) days of Tenant's Final acceptance of the substitute site. Tenant shall also restore the Leased Site to, as near as practical, to a reasonable condition under the circumstances, except normal wear and tear, and except for enhancements made by the TENANT to the Building pursuant to the terms of this Agreement. TENANT shall have the right to terminate this Agreement at any time upon the occurrence of any of the following events: A. If the approval of or issuance of a license or permit by any agency, board, court or other governmental authority necessary for the construction and/or operation of the Communications Facility as now or hereafter intended by the TENANT (the Approvals) cannot be obtained, or is revoked, or public opposition is unreasonable under the circumstances, as determined by TENANT, or TENANT determines the cost of obtaining and retaining such approval is unreasonable in TENANT'S sole discretion. B. If TENANT determines, in its sole discretion, based upon soil bearing tests, radio frequency propagation tests, or interference with TENANT'S reception or transmission, that the Leased Site is not appropriate for the uses intended by the T41A -5- TENANT (I) Upon not less than thirty (30) days written 'notice of termination of this Agreement by TENANT pursuant to the terms of Subsections 4(A) or 4(B) above; or (ii) in the event that the Approvals described in Subsection 4(A) above have not been initially received by TENANT within three hundred sixty- five (365) days (the Cancellation Date) from the date of the final execution of this Agreement by all parties (the Execution Date), this Agreement shall automatically terminate and neither party shall have any further rights or obligations arising hereunder, except that TENANT shall have the obligation to remove the Communications Facility and any Improvements from the Leased Site, and except for those rights and obligations that are to survive the termination of this Agreement pursuant to the expressed terms of this Agreement. Notwithstanding anything contained herein to the contrary, the Cancellation Date shall be automatically extended to seven hundred thirty (730) days from the Execution Date of this Agreement unless TENANT provides the LANDLORD with notice to the contrary prior to the expiration of the original Cancellation Date; following the Execution Date, the TENANT shall make a diligent and best effort to obtain all of the Approvals. LANDLORD agrees to cooperate with TENANT in securing all of the Approvals referenced in Subsection 4(A), above, including, without limitation, any required site plan/zoning approvals for the Leased Site. Upon the request of the TENANT, LANDLORD shall execute and deliver forms and applications as are necessary and appropriate to obtain such Approvals. TENANT reserves the right to contest and/or appeal, to the extent determined by TENANT, in TENANT'S sole discretion, any adverse governmental or judicial decision or determination relative to the issuance of any such Approvals. All costs arising out of the procurement of such Approvals shall be borne by TENANT. 5. LIABILITY AND INDEMNITY: Subj ect to and limited by Paragraphs 7 and 24, TENANT agrees to indemnify and to hold LANDLORD harmless from all claims (including costs and expenses of defending against such claims, through counsel designated by TENANT) arising from the negligence or willful misconduct of TENANT or TENANT I S agents or employees in or about the Leased Site. LANDLORD agrees to indemnify and hold TENANT harmless from all claims (including costs and expenses of defending against such claims) arising from the acts or omissions of LANDLORD, LANDLORD'S T41A -6- agents, employees, contractors, or other tenants of LANDLORD' occurring in or about the Leased Site. :, ,'t"' 6. DEFAULTS AND REMEDIES: Notwithstanding anything in this Agreement to the contrary, TENANT shall not be in default under this Agreement until: A. Fifteen (15) days after actual receipt of written notice thereof from LANDLORD of the non-payment of rent or other sums due under this Agreement; or B. Thirty (30) days after actual receipt of written notice of any other default from LANDLORD; provided, however, where any such default cannot reasonably be cured within said period, TENANT shall not be deemed to be in default under this Agreement if TENANT commences to cure such default within said period and thereafter diligently pursues such cure to completion (an Event of Default) . 7. INSURANCE: The TENANT is self-insured for all potential liability resulting from the TENANT'S negligence in accordance with and subject to the limitations of Section 768.28, Florida Statutes. The TENANT maintains a self-insurance program that will provide coverage for all bodily injury and property damage claims which may, as it relates to the TENANT'S use, occupancy or maintenance of the Leased Site, arise from the negligent acts of the TENANT'S employees or agents. Tenant agrees to provide Landlord with a notarized letter evidencing the extent of its insurance coverage. 8. SALE OF THE PARENT TRACT: Should the LANDLORD at any time during the Term of this Agreement decide to sell or lease all or any part of the Building or the Parent Tract, it is hereby agreed that this Agreement shall in no way be affected. The Agreement will be binding and in full force and effect. LANDLORD agrees not to sell, lease, use, or permit to be used any other portions of the Building or the Parent Tract, or property contiguous thereto owned or controlled by the LANDLORD, for the placement of other communications facilities or for any other purposes if, such other communication facilities or other use would interfere with the use of the Leased Site by TENANT. Notwithstanding anything contained herein to the contrary, in the event that any communications equipment hereafter affixed to the Building or the Parent Tract interferes with the TENANT'S Communications Facility, the LANDLORD T41A -7 - shall cause such interfering communications equipment to be removed . on an emergency basis. 9. COVENANT OF OUIET ENJOYMENT: LANDLORD covenants that the TENANT shall, upon paying the rent and performing the covenants and conditions herein, shall peaceably and quietly hold and enjoy the Leased Site during the Term of this Agreement. LANDLORD covenants that LANDLORD is seized of good and sufficient title and interest to the Parent Tract, including the Leased Site, and has full authority to enter into and execute this Agreement. 10. SUBORDINATION AND NON-DISTURBANCE: At LANDLORD r S option, this Agreement shall be subordinate to any deed to secure debt, deed of trust, mortgage, or similar instrument (collectively Mortgage) by LANDLORD which from time to time may encumber all or part of the Leased Site; provided however, the holder of every such Mortgage shall recognize the validity of this Agreement in the event of a foreclosure of LANDLORD'S interest, and TENANT'S right to remain in occupancy of the Leased Site as long as TENANT is not in def aul t of this Agreement, by executing a non-disturbance agreement in a form reasonably acceptable to the TENANT. TENANT agrees to execute in a timely manner whatever instruments as may reasonably be required to evidence this subordination clause. In the event the Leased Site is currently encumbered by a Mortgage, the LANDLORD, not later than thirty (30) days after this Agreement is fully executed, and as a condition precedent to TENANT r S obI igation to pay rent hereunder, shall obtain and furnish to TENANT a non-disturbance instrument in a form acceptable to TENANT. 11. TITLE INSURANCE: TENANT, at TENANT'S option, may obtain title insurance on the Leased Site. LANDLORD, at LANDLORD'S expense, shall cooperate with TENANT'S efforts to obtain such title insurance policy by executing documents or obtaining requested documentation as required by the title insurance company. At TENANT'S option, should the LANDLORD fail to provide the requested documentation within thirty (30) days of TENANT'S request, or fail to provide the non-disturbance instrument(s) as noted in Paragraph 11 of this Agreement, TENANT may withhold and accrue the monthly rental until such time as the requested document(s) is received or TENANT may terminate this Agreement. 12. HAZARDOUS SUBSTANCES: In the event Hazardous Substances, as said term is hereinafter defined, are discovered on, in or under T41A -8- the Leased Site as of the date of commencement of this Agreement or thereafter, except as a resul t of any act or omission of the TENfu~T, the LANDLORD, at its sole expense, shall, without interference with TENANT'S use and occupancy of the Leased Site, remove all such Hazardous Substances in accordance with all applicable laws, rules, ordinances, and regulations (the "Removal"). Unless such Hazardous Substances are deposited in, on, or under the Leased Site by an act or omission of the TENANT, the LANDLORD shall indemnify and hold the TENANT harmless against any claims arising out of such Hazardous Substances including all of TENANT'S attorney's fees and costs (the Indemnity). In the event Hazardous Substances are discovered on, in or under the Leased Site solely as a result of any act or omission of the TENANT, the TENANT shall be obligated to conduct the Removal and indemnify LANDLORD as to any claims arising out of such Hazardous Substances. For the purposes hereof, the term "Hazardous Substances" shall mean pollutants, contaminants, toxic or hazardous substances or wastes, oil or petroleum products, flammable or any other substances whose nature and/or quantity of existence, use, release, manufacture or effect renders it subject to Federal, state or local environmental, health, community awareness or safety laws or regulations, now or hereafter enacted or promulgated by any governmental authority or court ruling, or any investigation, remediation or removal. Further, Hazadards Substances shall be required to be removed from the Leased Site only if required by the proper governmental authorities. 13. ASSIGNMENT AND SUBLETTING: With the exception of TENANT'S principal, affiliates or subsidiaries of its principal or to any company upon which TENANT is merged or consolidated, TENANT shall not assign or encumber its interest in this Agreement or in the Leased Site, or sublease all or any part of the Leased Site, without LANDLORD'S prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. Consent by LANDLORD to assignment or subletting shall be deemed to be unreasonably withheld if the proposed assignee is of such financial standing and responsibility at the time of such assignment as to give reasonable assurance of the payment of all rent and other amounts reserved in this Agreement and compliance with all of the terms, covenants, provisions and conditions of this Agreement. Should this Agreement be assigned to any entity other than the Tenant's principal, affiliates or subsidiaries, Landlord shall be free to renegotiate the lease terms and the rent amount. If the T41A -9- assignment of this Agreement results in remuneration to the Tenant by the assignee, the Landlord shall be free to renegotiate the rent payment due it. 14. NOTICES: All notices hereunder must be in writing and shall be deemed validly given if sent by certified mail, return receipt requested, or by courier or by overnight delivery, addressed as follows (or to any other address that the party to be notified may have designated to the sender by like notice) : TENANT: City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 With copy to: City Attorney LANDLORD: Tower 41 Association, Inc. 4101 Pine Tree Drive Miami Beach, FL 33140 With copy to: Property Manager IS. TENANT MORTGAGE: LANDLORD covenants and agrees that, at all times during the continuance of this Agreement, and subject to Landlord's prior written approval, which approval shall not be unreasonably withheld, TENANT shall have the right to mortgage or convey by deed or trust or other instrument adequate for the purpose of securing any bona fide indebtedness of TENANT, this Agreement or the leasehold interest of the TENANT created hereby, together with all of the TENANT'S right, title and interest in and to the Communications Facility, Improvements, and any other equipment, towers or trade fixtures placed on the Leased Site by TENANT, provided always that not such mortgage, conveyance or encumbrance, nor any foreclosure thereof, nor any purchase thereunder, shall impair or abridge the rights of the LANDLORD. In the event of any such mortgage conveyance or assignment, landlord's lien shall be superior and shall not be subordinate to any such debtors lien on such improvements, equipment, towers, or trade fixtures. 16. CONDEMNATION: If the whole of the Leased Site or such portion thereof as will, in TENANT'S sole judgment, make the Leased Site unusable for the purposes herein leased, are condemned by any T41A -10- legally constituted authority for any public use or purpose, then in either of said events the Term hereby granted shall cease from the time when possession thereof is taken by public authorities, and rental shall be accounted for as between TENANT and LANDLORD as of that date. Any lesser condemnation shall cause the rental payable hereunder to be reduced by such percentage as the area so condemned bears to the entire Leased Site. Nothing in this provision shall be construed to limit or affect TENANT'S right to an award of compensation of any eminent domain proceeding for the Improvements or TENANT'S leasehold interest hereunder. 17. TESTS: TENANT is hereby specifically permitted to conduct surveys, soil tests, radio coverage tests, and any other test or investigation needed, in TENANT'S determination to or from the Leased Site and the Parent Tract to determine if the physical condition of the Leased Site is suitable for TENANT'S uses hereunder. TENANT may bring onto the Parent Tract or the Leased Site any equipment and machinery, including vans, trucks and cranes, that may be reasonably necessary to conduct these tests, but Tenant shall be responsible for any damage to the common elements or property located on the Parent Tract or Leased Site, caused by any machinery brought thereon. 18. CONDITION OF THE BUILDING: A. Exclusive of the obligations and responsibilities of TENANT as set forth elsewhere in this Agreement, LANDLORD shall be solely responsible, at its sole cost and expense, for operating, maintaining, and repairing the Building, such that TENANT is able to utilize the Building and the Leased Site for the purposes stated herein. LANDLORD shall comply with all applicable federal, state and local laws, ordinances, codes, rules and regulations pertaining to the Building, effective at the time of execution and as enacted thereafter, the violation of which will in any way negatively affect the rights and use of Tenant under this Agreement. LANDLORD shall be solely responsible for any fines, penalties, levies and/or other additional expenses imposed as a result of non-compliance with the requirements of such authorities. Any default by Landlord in its obligation under this section shall provide Tenant with the right to remedies at law or in equity, or to terminate the Agreement pursuant to the notice T41A -11- provisions set forth above. B. LANDLORD covenants Communications Equipment, maintenance will: and agrees that TENANT'S its installation, operation and (1) Not irreparably damage the Building structure and accessories thereto. (2) Comply will all applicable rules and regulations of the Federal Communications Commission and the City and State which has jurisdiction with respect to the Communications Facility. C. If the Building is damaged for any reason so as to render it substantially unusable for TENANT'S use, rent shall abate for such period while LANDLORD, at its expense, restores the Building to its condition prior to such damage; provided however, in the event LANDLORD fails to repair the Leased Site within thirty (30) days from the date of such damage, TENANT shall have the right terminate this Agreement with no further obligations hereunder. LANDLORD covenants and agrees that it shall repair such damage as soon as possible after the occurrence of such damage. Throughout the Term, LANDLORD shall insure the Building against all casualty in an amount equal to the replacement cost of the Building. 19. BUILDING STUDY: Within thirty (30) days from the date of execution of this Agreement by LANDLORD, LANDLORD agrees to furnish TENANT with true copies of all (a) Building studies, including but not limited to structural analyses of roof reports, that may have been performed on the Building and the rooftop of the Building within the last two (2) years; and (b) Architect and Building/Construction Plans for the Building. In the absence of such Plans or analysis, or if the most recent analysis is insufficient for TENANT'S needs, LANDLORD agrees to participate wi th TENANT in acquiring a new analysis on the rooftop of the Building (New Analysis). TENANT shall be responsible for coordinating the New Analysis and the cost for the New Analysis shall be paid by TENANT. In the event it is determined by TENANT that LANDLORD'S Building is not structurally appropriate for TENANT'S needs, TENANT may, at TENANT'S option, terminate this Agreement by providing written notice to LANDLORD. T41A -12- T41A 20. MISCELLANEOUS: A. This Agreement contains all agreements, promises and understandings between the LANDLORD and TENANT and no verbal or oral agreement, promises or understandings relating to the Leased Site or the Parent Tract shall be binding upon either the LANDLORD or TENANT in any dispute, controversy or proceeding at law. Any addition, variation or modification to this Agreement shall be void and ineffective unless made in writing and signed by the parties. If any term or provision, or any portion thereof, of this Agreement, or the application thereof to any person or circumstances shall, to the extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances, other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. B. This Agreement and the performance thereof shall be governed, interpreted, constructed and regulated by the laws of the State of Florida. C. This Agreement shall inure to the benefit of and be binding upon the heirs, personal representatives, successors and assigns of the parties hereto. Time is of the essence in this Agreement. D. Both LANDLORD and TENANT agree that upon the request of either party, at such party's sole expense, each party will execute and deliver a Memorandum of Lease, which Memorandum of Lease or this Agreement may be recorded of record in the County where the Leased Site is located. E. Whenever under this Agreement the consent or approval of either party is required or a determination must be made by either party, no such consent or approval shall be unreasonably withheld or delayed, and all such determinations shall be made on a reasonable basis and in a reasonable manner. In the event that a party hereunder does not actually receive a written response from the other party hereunder to the request for an approval within seven (7) days after the request for the approval is delivered to the other party, the -13- other party shall be conclusively deemed to have approved th~ request. F. If any paragraph, section, provision, sentence, clause, or portion of this Agreement is determined to be illegal, invalid or unenforceable, such determination shall in no way affect the legality, validity or enforceability of any paragraph, section, provision, sentence, clause or portion of this Agreement and any such affected portion or provision shall be modified, amended, or deleted to the extent possible and permissible to give the fullest effect to the purposes of the parties and of this Agreement, and the parties hereby declare that they would have agreed to the remaining parts of this Agreement if they had known that such provisions or portions thereof would be determined to be illegal, invalid, or unenforceable. G. Paragraph captions and headings are for convenience of reference only and in no way shall be used to construe or modify the provisions set forth in this Agreement. H. This Agreement shall be executed in three (3) counterparts, each of which shall be deemed an original, and such counterparts shall constitute but one and the same Agreement. 21. RADON GAS: Florida law requires that the following notice be provided on at least one document, form or application executed at the time of, or prior to execution of a rental agreement of any building: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of Radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding Radon and Radon testing may be obtained from your county public health unit. 22. TIME: Time is of the essence. 23. GOVERNING LAW: This Lease and the obligations of the parties shall be governed by the laws of the State of Florida T41A -14- IN WITNESS WHEREOF, the parties hereto have caused their names to be signed and their seals to be affixed; all as of the day and year first above written. CITY OF MIAMI BEACH --Sb} r~C~ CITY CLERK BY:\)~~(~ VICE-MAYOR W~ESSES: LANDLORD , -'- Inc. '( / '(CORPORATE SEAL) ,""'-..... I""'" ~. ..j r 1"-" r"", "''''1 Ut'L-'J (', " 1-r'HL ,..., .r"T Url U I ., Oy ( , Date -:;-8/ry~"" . T41A -15- TENANT sealed and delivered resence of: By:u_l\~~ David T. Pearlson Printed Name Lkui,lk~ Wltness ~hf~ (Y)L1jZ0Y Printed ame Vice-Mayor Title City of Miami Beach Address 1700 Convention Center Drive Miami Beach, Florida 33139 Executed on ,1996. day of STATE OF FLORIDA COUNTY OF DADE The foregoing instrument was acknowledged before me this of ~ ' 1996 , by ()/f-tf','!> T. i>~Qr-lst>..J as V ,'((' - N4yur of CJr-y of I--{ "~i aeQ<:.h a , who is personally known to me or who has produced as identification and who did (did not) take an oath. .sf L day My Commission Expires: rhlllQ u~ NOTARY PUBLIC ii/I/o"! 73e QUC-htlJ./ P Printed Name ' f~~)Fi~(~+r. ~T:!(~~'-7:1r -'''1 ULL.:.\I..r !":fv. :'., :: ~ N01lt\,R"~' :')U~~L~~:' ::~,;"~/,~j'.::.; c.' t L,"i~:L):\~ C(>!\~I\f!SS'()~~ ~\C' CC.',~7~<..O l MY COMMl::l:,'OU EXP, FE':';.! V'98 I __ .w.....t.... _._.___._._.... -16- LL o o a: z - <I: :E .... . ~ ~ .... e:( en a: .... ~ en I- W ... ~ ~ - ... m 0 0 - ... ::!: I- ~ >< W LANDLORD Signed, sealed and delivered in the presence of: ~ V(), / /' ( .... '/ / /-.. . (//.~ ~' ~ 0~>?t/lh- ~ CJk-- Witness / MORTON H. KOPEL Printed Name /~:?{ '~~1'~ /Witness SAM ZELINGER Printed Name PRESIDENT Title 4101 PineTree Dr. #1706 Address Miami Beach, F1 33140 Executed on JANUAR~ ,1996. 25 day of STATE OF FLORIDA COUNTY OF DADE oregoing instrument was acknowledged before me this;':>6~day . <-< ,197&, by m.<<A~~ . - , . . / of-r~--<...; - (V/,n-e___ ~t2/Ut-r~ Vr~v ' , , who is personally known to me or as identification and as a who has produced who did (did not) take an oath. My Commission Expires: ;Z . ~- . J~ /3eM'~ ~ NOTAR.Y PUBLIC , ~ -I e A ,;r:A_ 1)" I -z.-- Printed Name CIAL NorAR PEARL BAITZ NOTARY PUBLIC STATE?: FLORIDA COMMISSION NO. CC4791R5 MY COMMI_SSI(lliE1St,'~t/E..~, ,,'9 : T . - . EXHIBIT B -17- [DATE] President Tower 41 Association 4101 pine Tree Drive Miami Beach, FL 33141 Dear President: Based on attached be used 30, information provided by Florida Power & Light, as per the letter, the average rate of $ per kilowatt hour will for the period from October 1, to September . This rate has been calculated as follows: Average rate = (Peak Rate x Peak Hours oer Year) + (Off-Peak Rate x Off-Peak Hours oer Year) Total Hours Per Year Where: Peak Rate = Off-Peak Rate Peak Hours per Year= Off-Peak Hours per Year= Total Hours per Year= $0.0000 per kilowatt hour $0.0000 per kilowatt hour 3,134 hours 5,626 hours 8,760 hours Sincerely, City of Miami Beach cc: City Attorney, Miami Beach Property Manager, Tower 41