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HomeMy WebLinkAboutAGREEMENT TO LEASE REAL ESTATEF SCANNED BY S4, Lucie County AGREEMENT TO LEASE REAL ESTATE THIS AGREEMENT TO LEASE REAL ESTATE (this "Agreement") is made as of September 27, 1996, between Magnum Northeast Properties, Ltd., c/o Osiris (hereinafter "Lessor") and AMERICAN TOWER SYSTEMS, INC., a Delaware 3tion, with an address of 6400 N. Congress Avenue, Suite 1750, Boca Raton, Florida (hereinafter "Lessee') (collectively, the "Parties"). WHEREAS, Lessor is the owner in fee simple of certain real property in Section 6, To ship 36 South, Range 40 East, located in St. Lucie County, more fully described in the desc iption attached hereto as Exhibit A and incorporated herein by reference (the "Pro erty"); and WHEREAS, Lessee desires to lease the Property from Lessor; and Lessor desires to le 'se the Property to Lessee on the terms and conditions set forth herein; i NOW THEREFORE, in consideration of the mutual promises contained herein and ... n forT~o } er� goodj+ and -Valuable consideration, receipt and sufficiency "of �'whiich' is hereby` ' I% ackn wledged, and in consideration of the terms and conditions set forth herein and with the intention of being legally bound hereby, Lessee and Lessor agree as follows: ` 1. LEASE: Owner leases to Lessee portions of the Property consisting of an al �a which is described in Exhibit A, together with appurtenant Lease easements for in gre s and egress, 24 hour per day, seven days per week, on foot or by motor vehicle (incl ing by truck). The Lessee shall have the right to install. and maintain transmission and I tility wires and cables, conduits and pipes on the Property including over, under or along, a 20 foot right of way extending from the nearest public right-of-way for use by the publi utility, at no cost to Lessor. (a) Commencement and Term of Lease: This Agreement shall com ence upon the date upon which all zoning and permits necessary for the Lessee to � build p to a 300' (three hundred) tower (the "Tower") on the Property have been secured and '� nstruction started ( the "Commencement Date"), and shall expire on the twenty-fifth (25th anniversary of the Commencement Date. If Lessee is unable to secure all required zonin and permits for the Tower within 180 days of the date upon which this Agreement is exec ed, either party may terminate this Agreement at its option with no further liability to the of er party. (b) Renewal: This Agreement shall renew for up to three (3) ;ive five (5) year periods at a lease rate equal to the rate being paid at the ion of the prior term, plus inclusion of the annual adjustment described in paragraph (2) below, unless written notice from Lessee is provided to Lessor ninety (90) days to the termination of the then current term in effect. (c) Lease Payment: Commencing upon the Commencement Date, Lessee shall pay Lessor lease payments in semi-annual payments as follows: AMper year annually, paid in semi annual installments equal to $�. This annual rental rate will be adjusted upwards every five years by the greater of the CPI AWo. The CPI adjustment shall be calculated as follows: Hypothetical CPI at the beginning of the five year period = W Hypothetical CPI at the, end of the five years period = 4M Indicated increase adjustment by the CPI = W/o Ending CPI minus beginning CPI is divided by the beginning CPI, or -M =MB or W lAs the greater is f Wo, the lease rate would be adjusted upward by 'ft annually for e next 5 year period. Additionally, the Lessor reserves the right to occupy a space on the Tower for their se. 2 LESSEE'S DEFAULT: In the event of default by Lessee hereunder,:-- -= M: -,gin_ nclu'ding'without"limitation nonpayment jof any lease payment, which nonpayment remains uncured for thirty (30) Days from the date on which Lessor gives Lessee written notice that said payment was due, Lessor may declare Lessee in default and may seek to evict said Lessee. In the event of any litigation over the performance of this Agreement by either party, the prevailing party shall collect its reasonable costs and legal fees from the party which did not prevail. 3. LESSOR'S DEFAULT: In the event of default by Lessor hereunder, Lessee may, at its option, elect to enforce the terms hereof in any court of competent jurisdiction or demand and be entitled to any and. all appropriate damages in connection with such default. 4: TITLE: Lessor represents and warrants to Lessee that as of the signing of this, Agreement it holds unencumbered and marketable title to the Property and will provide satisfactory evidence thereof on or before the Commencement Date. If Lessor is unable to demonstrate on or before the Commencement Date that it has an unencumbered and marketable title to the Property, Lessor shall have thirty (30) days to remedy the title defects. In the event that the title defects cannot be remedied, Lessee shall have the right to cure and remedy the defect(s) and Lessor shall be liable for all damages and costs incurred by Lessee arising from the breach of the warranty concerning title. 5. POSSESSION: Subject to paragraph 4 above, Lessor shall deliver and Lessee shall accept possession of the Property on the Commencement Date. Lessor I i repr' sents that as of the Commencement Date, no party will possess any leasehold rights in or to the Property. Lessor shall have the right to continue to occupy the Property as well as ' ssee, and shall carry on such activities as are consistent with law and which do not inte ere with Lessee's right to use the Property for a transmission facility as detailed in par raph 8 (a) below. 6. TAXES: Lessor agrees to pay the real property taxes levied and ass ssed against the Property for the year 1996, on time and prior to said taxes becoming deli quent. Thereafter, during the lease term and any renewals, and during the year in whi said lease shall be operative as of January 1st of said year, Lessee shall pay all real esta a taxes levied and assessed against that part of the property set forth on Exhibit A. Les ee shall promptly reimburse Lessor for said real property taxes within thirty days of Les or submitting a reasonable estimate based upon assessment information obtained fron the St. Lucie County Property Appraiser's Office and millage requirements of the cou ty, together with a copy of a paid tax bill covering the real property of which the pro 'erty forth in Exhibit A is a part. The. Lessee would reserve the right to challenge the Pro erty Appraiser's assessment of the Property if such assessment increases over the cum ntly assessed value. � 7. BROKER/AGENT PARTICIPATION: A Broker's fee is part of this tranaction and will be paid by the Lessor. This Broker's fee involves.Merritt Realty ( Ed Mer' itt, Broker) and the Lessor. The Lessee has a contractual agreement with Chapman "arid' Chapman Associafid'b is agr`eeinents "is' a "consultant "s"ervrces agreement m`�►irhich ""`' Her ert L. Chapman is a subcontractor for the Lessee. 0 S. GENERAL PROVISIONS: The following general provisions shall apply to the�Lsehold granted by this Agreement: (a) Purpose: Lessee shall have the exclusive use of the Property for purposes of operating a communications facility, limited to the erection of a transmission to r, satellite downlink antennas, transmitter and receiver buildings, other receive and tran mit antennas, and other secondary communications facilities. Lessor will grant app'oval to the construction plans of Lessee prior to the Commencement Date, which app'oval shall not be unreasonably withheld. Lessee's operation of its facility shall at all time be consistent with law, ordinance and administration regulation. Lessor's initialing of Exh bit A shall signify Lessor's. approval of the location of the Leased Premises and app' rtenant Lease easements Lessor also grants to Lessee rights to (i) install electric lines fron i a main feed of off -site power source to the equipment and telephone lines from a main or o -site telephone entry point to the equipment, and (ii) erect, construct or make Property imp ovements, alterations or additions ("Lessee's Changes") appropriate for Lessee's use. Les ee's Changes may include, if permitted by Law, fencing and landscaping the Leased Pre ises. All Lessee's Changes shall remain Lessee's personal property, save for cul J rts, cattleguards, fencing, and permanently installed drainage structures, which will rerrin after lease expiration. this (b) Assignment and Sublease: Lessee may freely assign its rights under ement or sublet the Property or facilities on the Property subject to Lessor's written , which shall not be unreasonably withheld. (c) Condition of Premises: Lessee agrees that no representation as to cndition or repair of the Property, and no promise to alter, repair or improve the Pro ierty has been made by Lessor. Lessee shall deliver the Property to Lessor in good repa ir at the expiration of this Agreement, and shall remove all fixtures which it has placed on t e Property prior to the expiration of the lease term, yielding up and delivering the Pror erty in like condition as when taken, save for culverts, cattleguards, fencing, and perr anently installed drainage structures. (d) Right To Enter Property: Lessor shall have full right to inspect or access to the leasehold improvements made by Lessee in or to the Property at all given prior notice to the Lessee. (e) Alterations: Lessee may freely make alterations, decorations, add ions or improvements in or to the Property, provided that said alterations, additions, dec4 irations or improvements are in compliance with federal, state and , local laws, regL'lations and ordinances. Any mechanic's lien filed against the Property for work clair ied to have been done for or materials claimed to have been furnished to Lessee shall be c ischarged by Lessee within ten (10) days after filing. Lessor shall have the right, but not he -obligation,- to -pay-or, discharge any mechanic's lien. If Lessor -should--elect, 10 exercise this right, Lessee shall pay Lessor the amount so expended, within 10 days of notice by Lessor of said obligation. Lessor will allow Lessee to make reasonably appropriate alterations to the Property in order to accomplish Lessee's Changes, in acc rdance with plans and specifications ("Plans") to be submitted to Lessor and reviewed for d pproval not later than five (5) days from submission. After Lessor's written acceptance of a y Plans submitted by Lessee, the Plans shall be determined to be accepted to Lessor, and shall incorporated in the Lease as Exhibit "B". (f) Lessor's Nonliability: Lessor shall not be responsible or liable to Les iee for any loss or damage that may be occasioned by or through the acts of omissions of ersons occupying adjoining property. In addition, Lessor shall not be liable for any da sage or injury to any person or property which occurs on the Property due to Lessee's acti' ns or omissions. Lessee shall maintain commercial liability insurance on the Property of a type and level consistent with good communications industry practice, but in no event les than $1,000,000 and Lessor shall be named as an additional insured on said policy at no i ost to Lessor. (g) Eminent Domain: If, during the term of this Agreement, pro eedings shall be instituted under the power of eminent domain which shall result in an evidtion, total or partial, of Lessee, at the time the trial of such proceedings shall commence, this Agreement shall be voidable at the option of Lessee and the terms above shad cease and terminate if Lessee elects to void this Agreement. If the Lessee continues in ZF ssession, it shall be as a Lessee from month to month and for no longer terms, ing in this instrument to the contrary notwithstanding. (h) Remedies Not Exclusive: Each of the rights provided in this shall be cumulative. (i) Right To Mortgage: Lessor shall have the right to subordinate this Agr ement to any mortgage hereafter placed on the Property. (j) Quiet Enjoyment: Upon Lessee paying the rent and performing all of Jly eother provisions of this Agreement, Lessor agrees that Lessee shall peacefully and qui have, hold and enjoy the Property during the term of this Agreement. Dur g the term of this Agreement, the Lessee will provide the Lessor a list of the tenants and an inventory of their equipment which is mounted on the Tower. 9. MISCELLANEOUS: The following additional terms and conditions apply to the erformance of this Agreement by the parties: (a) Lessor agrees that Lessee's ability to use the Leased Premises is con ingent upon its suitability for Lessee's intended use from a technical engineering basis and Lessee's ability to obtain any and all governmental leases, permits, and approvals reqt iired or deemed necessary or appropriate by Lessee for its use of' the- Leased Premises (cal ed "Governmental Approvals"). Lessor agrees to cooperate with Lessee, and at Les ee's expense join in any applications for Governmental Approvals. Lessor specifically au ' orizes Lessee to prepare, execute and file all necessary or appropriate applications to obt in Governmental Approvals for its use under this Lease. Les' ee shall have a period of 180 days, from the execution date of this Agreement, unless ext nded in writing by Lessor, to obtain all required governmental approvals and licenses. Fail�� re of Lessee to obtain said approvals, licenses or permits shall render this Agreement null ,and void. (b) Lessor also agrees that Lessee's ability to use the Leased Premises is lent upon the completion of contract arrangements with its sublicensee(s) for a of time not to exceed 180 days. (c) Waiver of Default: Either party may waive or remedy any default in an manner without waiving such default remedied and without waiving any other prior or sub equent default; and either party may waive or delay the exercise of any right or remedy un r this Agreement without waiving that right or remedy or any other right or remedy her under. No waiver of any of the terms, provisions or conditions hereof shall be effective ag- nst either party unless the same is in writing and signed by the waiving party. to t the (d) Binding on Assigns: This Agreement shall be binding upon, and shall inure benefit of the respective heirs, executors, administrators, successors and assigns of (e) Survival of Covenants and Warranties: Each of the agreements, nts and warranties on the part of the Parties to this Agreement shall be deemed and ed to be on a continuing basis and shall survive the execution and deliver of this lent. (f I Notices: All notices, demands or requests required or permitted and Ir this Agreement to be given by or to either of the Parties (i) shall be in writing and (ii) unle s and until otherwise specified in a written notice by the respective parties or any of then;, i shall be sent to the parties at their following respective addresses: or to rece so r first If to the Lessor: Magnum Environmental Services Atten: Osiris Ramos 5690 West Midway Road Ft. Pierce, Florida 34981 Telephone: 561-468-9328 If to the Lessee: American Tower. Systems, Inc. 6400 N. Congress Avenue Suite 1750 Boca Raton, FL 33487 Atten: James S. Eisenstein Telephone: 407-998-2280 Fax 407-998-2278 uch other address as either party from time to time shall designate by written notice other. Each such notice, demand or request shall be deemed to have been properly I for all purposes if personally delivered or sent by Registered or Certified Mail, return t requested, postage prepaid, to its addressee at its address as set forth herein or by recognized overnight courier service. Each such notice, demand or request iled by either party shall be deemed to have been received by its addressee on the isiness day after the day of mailing. the I (g) Integration; Amendment; Modification: This Agreement represents itire agreement of the Parties as to the subject, and there exists. no other oral or i agreement or understanding which is not a part of this Agreement or which shall no force or effect. This Agreement shall not be amended or modified except by i instrument executed by the Parties. j (h) Separability: Each section, subsection and lesser section of this Agr 'ement constitutes a separate and distinct undertaking, covenant or provision hereof. In a event that any provision of this Agreement shall be determined by a court of comevent jurisdiction to be unlawful, such provision shall be deemed severed from this Agr �ment, but every other provision of this Agreement shall remain in full force and effect. (i) Law of. Forum; Venue: This Agreement shall be construed in accodance with and governed by the laws of the State of Florida. The Parties agree that this agreement was executed in St. Lucie County, Florida and the Parties contemplate that its p rformance is to occur in St. Lucie County, Florida. Thus, the Parties agree that the sole enues for all actions brought pursuant to this Agreement shall be the courts of law or equi of St. Lucie County, Florida or in the courts of the United States of America located in FtJPierce, Florida. Titles; Pronouns: Titles at the beginning of paragraphs, subp; ragraphs, sections and subsections of this Agreement are placed there for the conv nience of the reader, and are of no force or effect. To the extent that said titles are exprel sed or implied contrary to any provision in this Agreement, the terms of the provision and of the title governs the interpretation of this Agreement. Pronouns, regardless of gend r, shall be interpreted. as if they were of the gender of the noun to which they refer. (k) Interpretation: Neither this Agreement nor any provision contained here- shall be interpreted for or against either Party solely because that Party or that Party legal representative crafted the provision. (1) Counterparts: This Agreement may be executed in one or more each of which shall be deemed an original and all of which shall constitute the same IN WITNESS WHEREOF, the Parties hereto, intending to be' legally bound, have ed and delivered this Agreement on the day and ear first a written. By:-Z- Date: ' / 2 , 1996 i AMERICAN TOWER SYSTEMS, INC. By: James S. Eisenstein hief Operating Officer Date: , 1996 i