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HomeMy WebLinkAboutR-11635 approving the First Amendment with SBA 2012 TC Assets, LLC for telecommunications facilitiesR 11635 RESOLUTION NO. 11635 (2026 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE FIRST AMENDMENT WITH SBA 2012 TC ASSETS, LLC FOR TELECOMMUNICATIONS FACILITIES AT LAGUNA LAKE GOLF COURSE WHEREAS, the City entered into a lease agreement with Sprint PCS Assets, LLC on February 1, 2005, for an initial five-year term with options to extend for three additional five-year terms; and WHEREAS, Sprint PCS was later acquired by TowerCo Acquisition LLC, which became a subsidiary of SBA 2012 TC Assets, LLC (“SBA”) in 2012, and SBA has operated the telecommunications facility since that time; and WHEREAS, SBA has exercised all three initial five-year renewal options, and the current lease term expired in April 2025; and WHEREAS, in late 2020, SBA first expressed interest in further extending the lease, and while the lease has technically expired, SBA has remained proactive and responsive, including providing rent payment for 2025; and WHEREAS, the City Council met in closed session on November 18, 2025, to discuss options for the Laguna Lake Golf Course telecommunications site and determine negotiating parameters for the lease extension, and staff subsequently negotiated a lease amendment within the parameters established by Council; and WHEREAS, the Financial Management Manual (Section 475-C) authorizes long- term leases of City property on a case-by-case basis when they support City goals, plans, or policies and provide measurable community benefits. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City Council has determined, based on the circumstances at the time, that approval of Lease Amendment is in the best interest of the City and ensures continued reliable telecommunications service to the community. SECTION 2. The City Council hereby approves the First Amendment to the Lease Agreement with SBA 2012 TC Assets, LLC, substantially in the form attached hereto as Exhibit A, and authorizes the City Manager or designee to execute the amendment and any related documents necessary to effectuate the lease extension. SECTION 3. The City Manager or designee is authorized to take all actions necessary to implement this Resolution, including recording the lease amendment and updating financial records to reflect rent and revenue-sharing provisions. Docusign Envelope ID: BEF80FA3-2687-4A10-888A-10EB38FA23D8 Resolution No. 11635 (2026 Series) Page 2 R 11635 SECTION 4. This Resolution shall take effect immediately upon adoption. Upon motion of Council Member Shoresman, seconded by Vice Mayor Francis, and on the following roll call vote: AYES: Council Member Boswell, Marx, Shoresman, Vice Mayor Francis, and Mayor Stewart NOES: None ABSENT: None The foregoing resolution was adopted this 3rd day of March 2026. ___________________________ Mayor Erica A. Stewart ATTEST: ______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Docusign Envelope ID: BEF80FA3-2687-4A10-888A-10EB38FA23D8 3/9/2026 | 11:46 AM PDT 00746132 - v2 1 CA45998-A/Laguna Lakes Prepared by: Tiffany Gonsalves After recording return to: Rita Drinkwater SBA Network Services, LLC 8051 Congress Avenue Boca Raton, FL 33487 Ph: 800-487-7483 ext. 7872 Parcel ID: 053-111-058 FIRST AMENDMENT TO TELECOMMUNICATIONS FACILITY LEASE AT LAGUNA LAKE GOLF COURSE THIS FIRST AMENDMENT TO TELECOMMUNICATIONS FACILITY LEASE AT LAGUNA LAKE GOLF COURSE (“First Amendment”) is executed this ______ day of _____________, 202___, and is effective April 20, 2025 (“Effective Date”) by and between CITY OF SAN LUIS OBISPO, a California municipal corporation, having an address at 990 Palm Street, San Luis Obispo, CA 93401 (“Lessor”) and SBA 2012 TC ASSETS, LLC, a Delaware limited liability company, having a principal office located at 8051 Congress Avenue, Boca Raton, FL 33487 (“Lessee”). WHEREAS, Lessor and Sprint PCS Assets, LLC, a Delaware limited liability company, entered into that certain Telecommunications Facility Lease At Laguna Lake Golf Course dated February 1, 2005, as evidenced by that certain Memorandum of Agreement dated August 17, 2009, and recorded August 25, 2009, as Doc. No. 2009047880 (hereinafter referred to as “Lease”) and assigned to Lessee, f/k/a TowerCo Assets LLC, a Delaware limited liability company, successor by merger to Tower Entity 4 LLC, a Delaware limited liability company, pursuant to that certain Assignment and Assumption of Lease dated September 23, 2008, and recorded January 27, 2009, as Doc. No.2009003794; said recordings of the Clerk/Recorder of San Luis Obispo County, California, for Lessee’s use of a portion of the real property (“Premises”), located at 11175 Los Osos Valley Road, San Luis Obispo, CA 93405 (hereinafter referred to as “Land”), being more particularly described in the attached Exhibit “A”; and WHEREAS, Lessor and Lessee desire and intend to amend and supplement the Lease as provided herein. Docusign Envelope ID: BEF80FA3-2687-4A10-888A-10EB38FA23D8 00746132 - v2 2 CA45998-A/Laguna Lakes NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby, acknowledged, the parties hereto covenant, agree, and bind themselves to the following modifications to the Lease: 1. Section 3. Term, of the Lease is hereby amended to include the following: In addition to the Renewal Terms as referenced in the Lease, the Lease is hereby amended to include four (4) additional successive Renewal Terms of five (5) years, each of which shall be deemed automatically extended unless Lessee notifies Lessor of its intention not to renew the Lease at least sixty (60) days prior to the commencement of the succeeding Renewal Term. The first additional Renewal Term shall commence on April 20, 2025, upon the expiration of the Renewal Term expiring on April 19, 2025. In the event Lessor determines in its reasonable discretion that the Premises are required for public purposes, during each Renewal Term Lessor may terminate this Lease upon providing two (2) years’ prior written notice. Following such notice, the parties shall negotiate in good faith to identify a potential relocation site within the Land. Should the parties fail to reach an agreement on a mutually acceptable site, or if Lessee is unable or unwilling to relocate, this Lease shall terminate automatically upon the expiration of the two-year notice period. 2. Section 4. Rent, of the Lease is hereby amended to include the following: A. Retroactively to April 20, 2025, Lessor's Annual Rent shall be increased to the total amount of Fifty-Eight Thousand and No/100 Dollars ($58,000.00). 3. Section 20. Notice, of the Lease is hereby amended as follows: LESSOR: City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 LESSEE: SBA 2012 TC Assets, LLC Attn: Site Administration 8051 Congress Avenue Boca Raton, FL 33487-1307 Re: CA45998-A/Laguna Lakes 4. Section 23. Assignment and Subletting, subsection E1, of the Lease is hereby deleted in its entirety and replaced with the following: Lessee shall pay to Lessor revenue share equal to fifty percent (50%) of all revenue derived from new narrowband or broadband sublessees using the Premises ("Revenue Share"). Notwithstanding the foregoing, Revenue Share shall not apply to (i) existing sublessees New Cingular Wireless PCS and T-Mobile West, or (ii) any new sublessee that enters a separate ground lease directly with the Lessor for its equipment. All Docusign Envelope ID: BEF80FA3-2687-4A10-888A-10EB38FA23D8 00746132 - v2 3 CA45998-A/Laguna Lakes Revenue Share contained herein shall be payable one month in arrears upon Lessee’s receipt of rental payment from the applicable sublessee. Provided further, that in the event any said new sublessee enters into a separate ground lease for equipment storage with Lessor, Revenue Share for such sublessee shall not apply. 5. Upon full execution of this First Amendment, Lessee shall pay to Lessor a one-time payment of Forty-Five Thousand and No/100 Dollars ($45,000.00). 6. Capitalized terms not defined in this First Amendment will have the meaning ascribed to such terms in the Lease. 7. This First Amendment will be governed by and construed and enforced in accordance with the laws of the state in which the Land is located without regard to principles of conflicts of law. 8. Except as specifically set forth in this First Amendment, the Lease is otherwise unmodified and remains in full force and effect and is hereby ratified and reaffirmed. In the event of any inconsistencies between the Lease and this First Amendment, the terms of this First Amendment shall take precedence. 9. Lessor acknowledges that the exhibits attached to the Lease may be incomplete or contain inaccuracies and, accordingly, Lessee may replace and substitute such exhibits at its cost and with written consent of Lessor, with an accurate survey and/or legal descriptions of the Premises and re-record this First Amendment with copy provided to Lessor. Following such re-recording, the descriptions contained therein shall serve as the descriptions for the same for all purposes under the Lease. 10. Lessor represents and warrants to Lessee that Lessor is the sole owner in fee simple title to the Land and Lessor’s interest under the Lease and that consent or approval of no other person is necessary for Lessor to enter into this First Amendment. 11. This First Amendment may be executed in one or more counterparts and by the different parties hereto in separate counterparts, each of which when executed shall be, deemed to be an original but all of which taken together shall constitute one, and the same First Amendment. 12. Lessee shall have the right to record this First Amendment. [The remainder of this page is intentionally left blank. Signatures to follow.] Docusign Envelope ID: BEF80FA3-2687-4A10-888A-10EB38FA23D8 00746132 - v2 4 CA45998-A/Laguna Lakes IN WITNESS WHEREOF, the parties have executed this First Amendment as of the day and year first above written. LESSOR: City of San Luis Obispo, a California municipal corporation By: ___________________________________ Print Name: _________________________ Title: __________________________________ A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. STATE OF CALIFORNIA ) COUNTY OF ) On _________________________, 202___, before me, ____________________________ personally appeared __________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. ____________________________________ Notary Public________________________ My Commission Expires _______________ (NOTARY SEAL) Docusign Envelope ID: BEF80FA3-2687-4A10-888A-10EB38FA23D8 00746132 - v2 5 CA45998-A/Laguna Lakes WITNESSES: LESSEE: SBA 2012 TC Assets, LLC, a Delaware limited liability company _______________________________________ By: ________________________________ Joshua Koenig, Executive Vice Print Name: __________________________ President and General Counsel _______________________________________ Print Name: __________________________ STATE OF FLORIDA COUNTY OF PALM BEACH The foregoing instrument was acknowledged before me by means of [X] physical presence or [ ] online notarization, this _____ day of _______________________, 202___, by Joshua Koenig, Executive Vice President and General Counsel of SBA 2012 TC Assets, LLC, a Delaware limited liability company, on behalf of said company, who is personally known to me and did not take an oath. ___________________________________ Notary Public ________________________ My Commission Expires _______________ (NOTARY SEAL) Docusign Envelope ID: BEF80FA3-2687-4A10-888A-10EB38FA23D8 00746132 - v2 6 CA45998-A/Laguna Lakes EXHIBIT “A” Legal description to be incorporated upon receipt of final survey. Docusign Envelope ID: BEF80FA3-2687-4A10-888A-10EB38FA23D8