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RES 2005-25TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2005-25 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, AUTHORIZING AND APPROVING THE TERMS AND CONDITIONS OF A COMMUNICATIONS SITE LEASE AGREEMENT BY AND BETWEEN THE TOWN OF TROPHY CLUB AND NEXTEL OF TEXAS, INC., A TEXAS CORPORATION, D/B/A NEXTEL COMMUNICATIONS PROVIDING TERMS AND CONDITIONS FOR THE USE OF THE PREMISES IDENTIFIED AS 901 TROPHY LAKE DRIVE FOR THE PURPOSE OF IMPROVING COMMUNICATIONS CAPABILITIES WITHIN THE TOWN; AUTHORIZIING ITS EXECUTON BY THE MAYOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town Council of the Town of Trophy Club is a Home Rule municipality created under the Constitution of the State of Texas; and WHEREAS, the Town of Trophy Club is a sovereign governmental entity with ownership and control of a certain parcel of land more commonly identified as 901 Trophy Lake Drive (hereinafter "Premises"); and WHEREAS, as a property owner and sovereignty, the Town of Trophy Club has the right, duty, and obligation to act as a good steward of public property and to perform governmental functions which promote the health, safety and welfare of the public and protect the interests of all residents within the Town; and WHEREAS, the Town Council of the Town of Trophy Club recognizes that the health, safety, and welfare of all Town residents, including the residents in the Village West, Section "A" subdivision, are served by efficient and effective operation of communications systems; and WHEREAS, the Town Council recognizes that this goal would be furthered by the Town's participation in a Communications Site Lease Agreement by and between the Town of Trophy Club and Nextel of Texas, Inc., a Texas corporation, d/b/a Nextel Communications (hereinafter "Agreement") for the location of a stealth antenna facility on the Premises; and WHEREAS, the Town finds it serves a governmental purpose and promotes the best interests of all residents of Trophy Club to enter into the Agreement; and WHEREAS, the Town Council has been presented a proposed Agreement providing terms and conditions for use of the Premises, a substantial copy of which is attached hereto as Exhibit "A" and incorporated herein; and WHEREAS, upon full review and consideration of the Agreement, and all matters attendant and related thereto, the Town Council is of the opinion that the terms and conditions thereof should be approved, and that the Mayor should be authorized to execute it on behalf of the Town. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: Section 1. All of the above premises are found to be true and correct and are hereby affirmed and adopted as findings by the Town Council of the Town of Trophy Club. Section 2. The Town Council hereby approves the terms of the Communications Site Lease Agreement by and between the Town of Trophy Club and Nextel of Texas, Inc., a Texas corporation, d/b/a Nextel Communications, attached hereto and incorporated herein as Exhibit "A". Section 3. The Mayor is hereby authorized to execute the Agreement and all other documents in connection therewith on behalf of the Town, substantially according to the terms and conditions set forth in the Agreement. Section 4. This Resolution shall become effective immediately upon its passage. DULY PASSED AND APPROVED this the 2gth day of August, 2005. Nick Sanders, Mayor Town of Trophy Club, Texas ATTEST: Town of Trophy Club, Texas [SEAL] APPROVED AS TO FORM: Town Attorney Town of Trophy Club, Texas Site: TX-0666E Market: North Texas 4?wi 34 , 2005, by This COMMUNICATIONS SITE LEASE AGREEMENT ("Agreement") is dated as of , Nextel of Texas, Inc., a Texas corporation, d/b/a Nextel Communications ("Nextel" or "Tenant") and the Town of Trophy Club, Texas, a home rule municipality ("Owner" or "Landlord"). For One Dollar ($1.00) paid to Owner, and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Premises. Owner owns a parcel of land ("Land") located in the Town of Trophy Club, County of Denton, State of Texas, commonly known as 901 Trophy Lake Drive, Trophy Club, Texas 76262 (APN: R167837). The Land is more particularly described in Exhibit A annexed hereto and incorporated herein. Subject to the provisions of Paragraph 2 below ("Effective DateJDue Diligence Period"), Owner hereby leases to Nextel and Nextel leases from Owner approximately 1.000 square feet of the Land and all access and utility easements necessary or desirable therefor ("Premises"), as may be described generally in Exhibit B annexed hereto and incorporated herein. 2. Effective DateIDue Diliqence Period. This Agreement shall be effective on the date of full execution hereof ("Effective Date"). Beginning on the Effective Date and continuing until the Term Commencement Date as defined in Paragraph 3 below ("Due Diligence Period"), Nextel shall only be permitted to enter the Land for the limited purpose of making appropriate engineering and boundary surveys, inspections, and other reasonably necessary investigations and signal, topographical, geotechnical, structural and environmental tests (collectively, "Investigations and Tests") that Nextel may deem necessary or desirable to determine the physical condition, feasibility and suitability of the Premises. In the event that Nextel determines, during the Due Diligence Period, that the Premises are not appropriate for Nextel's intended use, or if for any other reason, or no reason, Nextel decides not to commence its tenancy of the Premises, then Nextel shall have the right to terminate this Agreement without penalty upon written notice to Owner at any time during the Due Diligence Period and prior to the Term Commencement Date. Owner and Nextel expressly acknowledge and agree that Nextel's access to the Land during this Due Diligence Period shall be solely for the limited purpose of performing the Investigations and Tests, and that Nextel shall not be considered an owner or operator of any portion of the Land, and shall have no ownership or control of any portion of the Land (except as expressly provided in this Paragraph 2), prior to the Term Commencement Date. Notwithstanding the foregoing, during the Due Diligence period, Nextel shall not create any hazards upon the Premises and if the surface of the Premises is disturbed or disrupted by Nextel's actions, Nextel shall secure the premises, warn of any hazards, and within a reasonable time period, repair the Premises to a condition as good or better than the condition of the Premise prior to Nextel's actions. 3. - Term. The term of Nextel's tenancy hereunder shall commence upon commercial operation of the Tenant Facilities (as defined in Paragraph 6 below) or six (6) months following the Effective Date, whichever first occurs ('Term Commencement Date") and shall terminate on the fifth anniversary of the Term Commencement Date ("Term") unless otherwise terminated as provided herein. Tenant shall have the right to extend the Term for five (5) successive five (5) year periods ("Renewal Terms") on the same terms and conditions as set forth herein. This Agreement shall automatically be extended for each successive Renewal Term unless Tenant notifies Landlord of its intention not to renew prior to commencement of the succeeding Renewal Term. 4. Rent. Within fifteen (1 5) business days following the Term Commencement Date and on the first day of each month thereafter, Tenant shall pay to Landlord as rent Two Thousand Five Hundred and 00J100 Dollars per month ("Rent"). Rent shall be increased at the commencement of each Renewal Term by an amount equal to fifteen percent (15%) of the Rent in effect for the previous Term or Renewal Term. Rent for any fractional month at the beginning or at the end of the Term or Renewal Term shall be prorated. Rent shall be payable to Landlord at Town of Trophy Club, 100 Municipal Drive, Trophy Club, Texas 76262; Attention: Town Manager. All of Tenant's monetary obligations set forth in this Agreement are conditioned upon Tenant's receipt of an accurate and executed W-9 Form from Landlord. 5. - Use. From and after the Term Commencement Date, Tenant may use the Premises for any lawful activity in connection with the provision of communications services in accordance with Tenant's FCC (as defined in Paragraph 7 below) license and applicable local, state, and federal laws and regulations. Tenant shall have the ongoing right to Revised 10/15/2004 perform such Investigations and Tests as Tenant may deem necessary or desirable. Landlord agrees to cooperate with Tenant, at no out of pocket expense to Landlord, in making application for and obtaining all licenses, permits and any and all other necessary approvals that may be required for Tenant's intended use of the Premises. Prior to commencement of construction of the Tenant Facilities and prior to any substantial alteration or modification to the Tenant Facilities (excluding routine maintenance, repairs, the like-kind replacement of the Tenant Facilities, or any modifications to the interior of the equipment shelter or items housed therein), Tenant shall submit copies of the site plan and specifications to Landlord for prior approval, which approval will not be unreasonably withheld, conditioned, or delayed. Landlord shall give such approval or provide Nextel with its requests for changes within ten (1 0) business days of Landlord's receipt of Nextel's plans. If Landlord does not provide such approval or request for changes within such ten (10) business day period, Landlord shall be deemed to have approved the plans. Landlord shall not be entitled to receive any additional consideration in exchange for reviewing or giving its approval for such alterations or modifications. 6. Facilities; Utilities; Access. (a) Except as limited by Paragraph 6(e) below, Tenant has the right to construct, erect, maintain, test, replace, remove, operate and upgrade on the Premises communications facilities, including without limitation an antenna tower or pole and foundation, utility lines, transmission lines, an air conditioned equipment shelter(s), electronic equipment, transmitting and receiving antennas, microwave dishes, antennas and equipment, a power generator and generator pad, and supporting equipment and structures therefor ("Tenant Facilities"). In connection therewith, Tenant has the right to do all work necessary to prepare, maintain and alter the Premises for Tenant's business operations and to install transmission lines connecting the antennas to the transmitters and receivers. All of Tenant's construction and installation work shall be performed at Tenant's sole cost and expense and in a good and workmanlike manner. Tenant shall hold title to the Tenant Facilities and all of the Tenant Facilities shall remain Tenant's personal property and are not fixtures. Tenant has the right to remove the Tenant Facilities at its sole expense on or before the expiration or earlier termination of this Agreement, and Tenant shall repair any damage to the Premises caused by such removal. Upon the expiration or earlier termination of this Agreement, Tenant shall remove the Tenant Facilities from the Land, but is not required to remove any foundation more than one (1) foot below grade level. Tenant shall repair any damage to the Premises and restore the Premises to a condition as good or better than the condition of the Premise prior to Nextel's use of the Premises. Any such removal and restoration under this Agreement shall be conducted within sixty (60) days of the date of expiration or earlier termination of this Agreement." (b) Tenant shall pay for the electricity it consumes in its operations at the rate charged by the servicing utility company. Tenant shall have the right to draw electricity and other utilities from the existing utilities on the Land or obtain separate utility service from any utility company that will provide service to the Land. In connection therewith, Landlord hereby grants to the local telephone, power and utility companies (as appropriate) non-exclusive rights to locate, construct, install, operate, maintain, repair, replace, alter, extend, and/or remove cables and lines on, over, under and across a portion of Landlord's Property as necessary or desirable therefor. Landlord agrees to sign such documents or easements, at no cost to Tenant or the utility companies, as may be required by said utility companies to provide such service to the Premises. Any easements necessary for such power or other utilities will be at locations reasonably acceptable to Landlord and the servicing utility company. (c) Tenant, Tenant's employees, agents and contractors shall have access to the Premises without notice to Landlord twenty-four (24) hours a day, seven (7) days a week, at no charge. Landlord grants to Tenant, and Tenant's agents, employees and contractors, a non-exclusive right and easement for pedestrian and vehicular ingress and egress across the Land, and such right and easement may be described generally in Exhibit B. (d) Landlord shall maintain all access roadways from the nearest public roadway to the Premises in a manner sufficient to allow pedestrian and vehicular access at all times under normal weather conditions. Landlord shall be responsible for maintaining and repairing such roadways, at its sole expense, except for any damage caused by Tenant's use of such roadways. Notwithstanding the foregoing, Tenant may construct an access road to the Premises ("Access Road"), across the Land as more fully described in Exhibit 6, if Tenant reasonably determines such Access Road is necessary for Tenant's ingress to and egress from the Premises. Any such access road shall be constructed in accordance 2 N:\padamsWvate\Trophy ClubWextelWextel Ground Lease Agreement August 2005 Final.doc with Landlord's standards and approval for such access road shall be in accordance with the procedure set forth in Paragraph 5 above as applicable to the construction of Tenant Facilities. Tenant shall be responsible for maintaining and repairing such Access Road until the expiration or earlier termination of this Agreement, at its sole expense, less reasonable wear and tear or loss by casualty or other causes beyond Tenant's reasonable control. Landlord shall be responsible for any damages to the Access Road caused by use of the Access Road by Landlord, or Landlord's agents, employees, licensees, invitees or contractors, and shall be responsible for maintaining and repairing the Access Road from and after the expiration or earlier termination of this Agreement, which costs shall be Landlord's sole responsibility. (e) Only one tower may be built on the Premises, such tower being designed as a flag pole, with antennas housed inside the pole, and not visible from the outside of the pole. Maintenance of any and all flags attached to the flag pole shall be the responsibility of the Landlord. (f) Prior to Termination of this Agreement Landlord shall have the option to request that Tenant leave the tower on site rather than remove the Tower. Should Landlord decide to exercise its option granted hereunder, Landlord shall notify Tenant of its election to exercise the option at least thirty days prior to the termination of this Agreement. Should Landlord exercise its option Tenant shall have the option, at its sole discretion, to either (1) convey the existing Tower and/or shelter to Landlord or (2) remove the existing Tower and construct/install a new flagpole of similar or like quality. In either event Tenant shall convey the equipment to Landlord by Bill of Sale in the form of Exhibit "D annexed hereto. Landlord shall accept the equipment on an "as-is where-is" basis and disclaim any and all implied warranties including, but not limited to, the implied warranty of merchantability and the implied warranty of fitness for a particular purpose. In addition Landlord shall indemnify, as allowed by law, and hold Tenant harmless from any losses, liabilities, damages, costs, and expenses (including reasonable attorneys' and consultants' fees, costs and expenses) arising from the construction, maintenance, or repair of the antennas, coaxial cabling and shelter. In the event Landlord does not exercise its option under this section, Tenant agrees to remove the Tower and equipment shelter in accordance with Paragraph 6(a). 7. Interference. (a) Tenant shall operate the Tenant Facilities in compliance with all Federal Communications Commission ("FCC") requirements including those prohibiting interference to communications facilities of Landlord or other lessees or licensees of the Land, provided that the installation and operation of any such facilities predate the installation of the Tenant Facilities. Tenant shall operate the Tenant Facilities in accordance with Federal Communications Commission requirements and standards in such a manner that Tenant's use of the Premises will not cause interference to third persons with property contiguous to the Premises and/or to persons with property within a reasonable distance from the Premises where such interference is prohibited by FCC standards. Tenant agrees to use best efforts to eliminate such interference in a reasonable time period. (b) Subsequent to the installation of the Tenant Facilities, Landlord will not, and will not permit its lessees or licensees to, install new equipment on or make any alterations to the Land or property contiguous thereto owned or controlled by Landlord, if such modifications are likely to cause interference with Tenant's operations. In the event interference occurs, Landlord agrees to use best efforts to eliminate such interference in a reasonable time period. Landlord's failure to comply with this paragraph shall be a material breach of this Agreement. 8. Taxes. If personal property taxes are assessed, Tenant shall pay any portion of such taxes directly attributable to the Tenant Facilities. Landlord shall pay when due all real property taxes, assessments and deferred taxes on the Land. 9. Waiver of Landlord's Lien. (a) Landlord waives any lien rights it may have concerning the Tenant Facilities, all of which are deemed Tenant's personal property and not fixtures, and Tenant has the right to remove the same at any time without Landlord's consent. (b) Landlord acknowledges that Tenant has entered into a financing arrangement including promissory notes and financial and security agreements for the financing of the Tenant Facilities ("Collateral") with a third party financing 3 N:\padamsWrivate\Trophy ClubWextelWextel Ground Lease Agreement August 2005 Final.doc entity (and may in the future enter into additional financing arrangements with other financing entities). In connection therewith, Landlord (i) consents to the installation of the Collateral; (ii) disclaims any interest in the Collateral, as fixtures or otherwise; and (iii) agrees that the Collateral shall be exempt from execution, foreclosure, sale, levy, attachment, or distress for any Rent due or to become due and that such Collateral may be removed at any time without recourse to legal proceedings. 10. Termination. This Agreement may be terminated without further liability on thirty (30) days prior written notice as follows: (i) by either party upon a default of any covenant or term hereof by the other party, which default is not cured within sixty (60) days of receipt of written notice of default, except that this Agreement shall not be terminated if the default cannot reasonably be cured within such sixty (60) day period and the defaulting party has commenced to cure the default within such sixty (60) day period and diligently pursues the cure to completion; provided that the grace period for any monetary default is ten (10) days from receipt of written notice; or (ii) by Tenant if it does not obtain or maintain any license, permit or other approval necessary for the construction and operation of the Tenant Facilities; or (iii) by Tenant if Tenant is unable to occupy and utilize the Premises due to an action of the FCC, including without limitation, a take back of channels or change in frequencies; or (iv) by Tenant if any environmental report for the Land reveals the presence of any Hazardous Material after the Term Commencement Date; or (v) by Tenant if Tenant determines that the Premises are not appropriate for its operations for economic or technological reasons, including, without limitation, signal interference; or (vi) by Tenant if the Landlord fails to deliver to Tenant an executed memorandum of agreement or non-disturbance and attornment agreement pursuant to Paragraphs 19(g) and (h) below. Upon termination of this Agreement, Tenant shall remove all Tenant Facilities and restore and repair the Premises as provided in Paragraph 6 of this Agreement. 11. Destruction or Condemnation. If the Premises or Tenant Facilities are damaged, destroyed, condemned or transferred in lieu of condemnation, Tenant may elect to terminate this Agreement as of the date of the damage, destruction, condemnation or transfer in lieu of condemnation by giving notice to Landlord no more than forty-five (45) days following the date of such damage, destruction, condemnation or transfer in lieu of condemnation. If Tenant chooses not to terminate this Agreement, Rent shall be reduced or abated in proportion to the actual reduction or abatement of use of the Premises. If Tenant elects to terminate this Agreement pursuant to this Paragraph 11, Tenant shall remove all Tenant Facilities and restore and repair the Premises as specified in Paragraph 6 of this Agreement. If the Tenant Facilities are damaged, destroyed, or are being maintained in unsightly condition, Landlord shall notify Tenant in writing of the deficiencies and Tenant shall have thirty (30) days from the date of such notice to repair, replace or remove the Tenant Facilities; provided however, that if such Tenant Facilities are determined by Landlord to be unsafe or to pose a hazard to public health, safety, or welfare, Tenant shall take immediate action to secure the Facilities to eliminate the hazard to public health, safety, or welfare. Immediate action shall mean within five (5) business days of notice by Landlord. 12. Insurance. (a) Tenant, at Tenant's sole cost and expense, shall procure and maintain on the Premises and on the Tenant Facilities commercial general liability ("CGL") insurance covering bodily injury and property damage with a combined single limit of at least One Million and 001100 Dollars ($1,000,000.00) per occurrence. Subject to the standard exclusions and limitations of CGL policies, such insurance shall insure, on an occurrence basis, against all liability of Tenant, its employees and agents arising out of or in connection with Tenant's use of the Premises, all as provided for herein. Within thirty (30) days following the Effective Date, Tenant shall provide Landlord with a certificate of insurance ("COI") evidencing the coverage required by this Paragraph 12. Alternatively, Tenant shall have the option of providing Landlord with evidence of such coverage electronically by providing to Landlord a Uniform Resource Locator ("LIRL") Link to access Tenant's memorandum of insurance ("MOI") website in order for Landlord to review the coverage required by this Paragraph 12. (b) Landlord, at Landlord's sole cost and expense, shall procure and maintain on the Premises CGL insurance covering bodily injury and property damage with a combined single limit of at least One Million and 001100 Dollars ($1,000,000.00) per occurrence. Subject to the standard exclusions and limitations of CGL policies, such insurance shall insure, on an occurrence basis, against all liability of Landlord, its employees and agents arising out of or in connection with Landlord's use, occupancy and maintenance of the Premises and Landlord's property located thereon. Within thirty (30) days following the Effective Date, Landlord shall provide Tenant with a COI evidencing the coverage required by this Paragraph 12. Alternatively, Landlord shall have the option of providing Tenant with evidence of such 4 N:\padamsVrivate\Trophy ClubWextelWextel Ground Lease Agreement August 2005 Final.doc coverage electronically by providing to Tenant a URL Link to access Landlord's MOI website in order for Tenant to review the coverage required by this Paragraph 12. 13. Waiver of Subroqation. Landlord and Tenant release each other and their respective principals, employees, representatives and agents, from any claims for damage to any person or to the Land or the Premises or to the Tenant Facilities or any other property thereon caused by, or that result from, risks insured against under any insurance policies carried by the parties and in force at the time of any such damage. Neither Landlord nor Tenant shall be liable to the other for any damage caused by any of the risks insured against under any insurance policy required by Paragraph 12. 14. Liability and Indemnity. To the extent allowed by law, Landlord and Tenant shall each indemnify, defend and hold the other harmless from and against all claims, losses, liabilities, damages, costs, and expenses (including reasonable attorneys' and consultants' fees, costs and expenses) (collectively "Losses") arising from the indemnifying party's breach of any term or condition of this Agreement or from the negligence or willful misconduct of the indemnifying party or its agents, employees or contractors in or about the Land. The duties described in this Paragraph 14 shall apply as of the Effective Date of this Agreement and survive the termination of this Agreement. 15. Assignment and Subletting. Tenant may not assign, or otherwise transfer all or any part of its interest in this Agreement or in the Premises without the prior written consent of Landlord; provided, however, that Tenant may assign its interest to its parent company, any subsidiary or affiliate of it or its parent company or to any successor-in-interest or entity acquiring fifty-one percent (51%) or more of its stock or assets, subject to any financing entity's interest, if any, in this Agreement as set forth in Paragraph 9 above. Upon assignment, Tenant shall be relieved of all future performance, liabilities, and obligations under this Agreement, provided that the assignee assumes all of Tenant's obligations herein. Landlord may assign this Agreement, which assignment may be evidenced by written notice to Tenant within a reasonable period of time thereafter, provided that the assignee assumes all of Landlord's obligations herein, including but not limited to, those set forth in Paragraph 9 ("Waiver of Landlord's Lien") above. This Agreement shall run with the Land and shall be binding upon and inure to the benefit of the parties, their respective successors, personal representatives, heirs and assigns. Notwithstanding any-thing to the contrary contained in this Agreement, Tenant may assign, mortgage, pledge, hypothecate or otherwise transfer without notice or consent its interest in this Agreement to any financing entity, or agent on behalf of any financing entity to whom Tenant (i) has obligations for borrowed money or in respect of guaranties thereof, (ii) has obligations evidenced by bonds, debentures, notes or similar instruments, or (iii) has obligations under or with respect to letters of credit, bankers acceptances and similar facilities or in respect of guaranties thereof." 16. Warranty of Title and Quiet Enjoyment. Landlord warrants that: (i) Landlord owns the Land in fee simple, has rights of access thereto from the nearest public roadway, which Tenant is legally permitted to use, and the Land and access rights are free and clear of all liens, encumbrances and restrictions except those of record as of the Effective Date; and (ii) Landlord covenants and agrees with Tenant that Tenant may peacefully and quietly enjoy the Premises and such access thereto, provided that Tenant is not in default hereunder after notice and expiration of all cure periods. 17. Repairs. Tenant shall repair any damage to the Premises or Land caused by the negligence or willful misconduct of Tenant. Except as set forth in Paragraph 6(a) above, upon expiration or termination hereof, Tenant shall repair the Premises to substantially the condition in which it existed upon start of construction, reasonable wear and tear and loss by casualty or other causes beyond Tenant's reasonable control excepted. 18. Hazardous Material. (a) As of the Effective Date of this Agreement: (1) Tenant hereby represents and warrants that it shall not use, generate, handle, store or dispose of any Hazardous Material in, on, under, upon or affecting the Land in violation of any Environmental Law (as defined below), and (2) Landlord hereby represents and warrants that (i) it has no knowledge of the presence of any Hazardous Material located in, on, under, upon or affecting the Land in violation of any Environmental Law; (ii) no notice has been received by or on behalf of Landlord from,. and Landlord has no knowledge that notice has been given to any predecessor owner or operator of the Land by, any governmental entity or any person or entity claiming any violation of, or requiring compliance with any Environmental Law for any environmental damage (or the presence of any Hazardous Material) in, on, under, upon or affecting the Land; and (iii) it will not permit itself or any third 5 N:\padams\Private\Trophy ClubWextelWextel Ground Lease Agreement August 2005 Final.doc party to use, generate, handle, store or dispose of any Hazardous Material in, on, under, upon, or affecting the Land in violation of any Environmental Law. (b) Without limiting Paragraph 14, to the extent allowed by law, Landlord and Tenant shall each indemnify, defend and hold the other harmless from and against all Losses (specifically including, without limitation, attorneys', engineers', consultants' and experts' fees, costs and expenses) arising from (i) any breach of any representation or warranty made in this Paragraph 18 by such party; and/or (ii) environmental conditions or noncompliance with any Environmental Law (as defined below) that result, in the case of Tenant, from operations in or about the Land by Tenant or Tenant's agents, employees or contractors, and in the case of Landlord, from the ownership or control of, or operations in or about, the Land by Landlord or Landlord's predecessors in interest, and their respective agents, employees, contractors, tenants, guests or other parties. The provisions of this Paragraph 18 shall apply as of the Effective Date of this Agreement and survive termination of this Agreement. (c) "Hazardous Material" means any solid, gaseous or liquid wastes (including hazardous wastes), regulated substances, pollutants or contaminants or terms of similar import, as such terms are defined in any Environmental Law, and shall include, without limitation, any petroleum or petroleum products or by-products, flammable explosives, radioactive materials, asbestos in any form, polychlorinated biphenyls and any other substance or material which constitutes a threat to health, safety, property or the environment or which has been or is in the future determined by any governmental entity to be prohibited, limited or regulated by any Environmental Law. (d) "Environmental Law" means any and all present or future federal, state or local laws, rules, regulations, codes, ordinances, or by-laws, and any judicial or administrative interpretations thereof, including orders, decrees, judgments, rulings, directives or notices of violation, that create duties, obligations or liabilities with respect to: (i) human health; or (ii) environmental pollution, impairment or disruption, including, without limitation, laws governing the existence, use, storage, treatment, discharge, release, containment, transportation, generation, manufacture, refinement, handling, production, disposal, or management of any Hazardous Material, or otherwise regulating or providing for the protection of the environment. 19. Miscellaneous. (a) This Agreement constitutes the entire agreement and understanding between the parties, and supersedes all offers, negotiations and other agreements concerning the subject matter contained herein. Any amendments to this Agreement must be in writing and executed by both parties. (b) Both parties represent and warrant that their use of the Land and their real and personal property located thereon is in compliance with all applicable, valid and enforceable statutes, laws, ordinances and regulations of any competent government authority. (c) If any provision of this Agreement is invalid or unenforceable with respect to any party, the remainder of this Agreement or the application of such provision to persons other than those as to whom it is held invalid or unenforceable, shall not be affected and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. (d) This Agreement shall be binding on and inure to the benefit of the successors and permitted assignees of the respective parties. (e) Any notice or demand required to be given herein shall be made by certified or registered mail, return receipt requested, or reliable overnight courier to the address of the respective parties set forth below: Landlord: Tenant: Town of Trophy Club, Texas A home rule municipality 100 Municipal Drive Trophy Club, Texas 76262 Attn: Town Manager Nextel of Texas, Inc., a Texas corporation 4700 W. Sam Houston Parkway Suite 200 Houston, TX 77041 Attn: Property Manager 6 N:\padamsVrivate\Trophy ClubWextelWextel Ground Lease Agreement August 2005 Final.doc Phone: 682-831 -4600 Phone: 832-590-2232 With a copy to: Nextel Communications, Inc. 2001 Edmund Halley Drive Reston, VA 201 91 -3436 Second Floor, Mail Stop 2E225 Attn: Contracts Manager - Legal Landlord or Tenant may from time to time designate any other address for this purpose by written notice to the other party. All notices hereunder shall be deemed received upon actual receipt or refusal to accept delivery. (f) This Agreement shall be governed by the laws of the State of Texas. (g) Landlord agrees to execute and deliver to Tenant a Memorandum of Agreement in the form annexed hereto as Exhibit C and acknowledges that such Memorandum of Agreement will be recorded by Tenant in the official records of the County where the Land is located. (h) In the event the and-is encumbered by a mortgage or deed of trust, Landlord agrees to obtain and deliver to Tenant an executed and acknowledged non-disturbance and attornment instrument for each such mortgage or deed of trust in a recordable form reasonably acceptable to both parties. (i) Landlord agrees to fully cooperate with Tenant (including obtaining and/or executing necessary documentation) to clear any outstanding title issues that could adversely affect Tenant's interest in the Premises created by this Agreement. (j In any case where the approval or consent of one party hereto is required, requested or otherwise to be given under this Agreement, such party shall not unreasonably delay or withhold its approval or consent. (k) Each of the parties hereto represent and warrant that they have the right, power, legal capacity and authority to enter into and perform their respective obligations under this Agreement. (1) Both parties took part in the negotiation of this Agreement and agree that legal concepts intended to construe the Agreement against the drafter will not apply against either party. (m) In the event of any breach or default by either party, the other party shall be entitled to all rights and remedies provided for in this Agreement and/or available at law, in equity, by statute or otherwise, all of which rights and remedies shall be cumulative (and not exclusive). (n) The captions and headings in this Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provision of this Agreement. (0) All Recitals set forth above, and all Riders and Exhibits annexed hereto, form material parts of this Agreement and are hereby incorporated herein by this reference. (p) This Agreement may be executed in duplicate counterparts, each of which shall be deemed an original. 20. Supplier Diversity. Nextel is committed to equal employment and vendor diversity. As part of this commitment, it is the policy of Nextel that small business concerns, veteran-owned small business concerns, HUBZone small business concerns, women-owned small business concerns, small disadvantaged business concerns (including 8(a) business concerns) and historically black colleges and universities and minority institutions ("Diverse Suppliers," as further defined below) shall have the maximum practicable opportunity to participate in performance of contracting between Nextel and its vendors. The term "Diverse Supplier(s)" shall mean and be defined as set forth in Federal Acquisition Regulation Part 19 and 13 C.F.R. Part 121. In addition, "Historically black colleges and universities," as included in the definition of "Diverse 7 N:\padams\Private\Trophy ClubWextelWextel Ground Lease Agreement August 2005 Final.doc Suppliers" for purposes of this Agreement, shall mean and include institutions determined by the Secretary of Education to meet the requirements of 34 C.F.R. ~ection'608.2; any nonprofit research institution that was an integral part of such a college or university before November 14, 1986; and "Minority institutions," as included in the definition of "Diverse Suppliers" for purposes of this Agreement, shall mean institutions meeting the requirements of Section 1046(3) of the Higher Education Act of 1965 (20 U.S.C. 51 135d-5(3)); and also Hispanic-serving institutions as defined in Section 316(b)(l) of such Act (20 U.S.C. §1059c(b)(l)). Landlord shall confirm in the space below whether or not Landlord reasonably believes it qualifies as a Diverse Supplier. *'*SIGNATURES ON FOLLOWING PAGE"' 8 N:\padams\Pn'vate\Trophy ClubWextelWextel Ground Lease Agreement August 2005 Final.doc IN WITNESS WHEREOF, the parties have executed this Agreement as of the date of the last signature below. LANDLORD: TENANT: Town of Trophy Club, Texas, Nextel of Texas, Inc., a general law municipality &US& By: Name: 1 (r V Title: Title: Vice President of Site Development, South Region Date: v .3 L& fl5 Date: Tax I.D.: 7.5 .lo# 7q 7s/ Diverse Supplier: Yes No STATE OF TEXAS COUNTY OF DENTON 1.4 29 ?' before me, / /,ir li/l m,On 6; , Notary Public, personally appeared , personally known to me (or pfoved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacity, and that by their signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. (SEAL) Notary Public My commission expires: STATE OF fsc On 9 1 \I )~n~~.efore me. ijT&r(Notary Pubic personally appeared Scott Smith, personally known to me or proved to me on the basis of satisfacldy evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacity, and that by their signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. EXHIBIT A DESCRIPTION OF LAND to the Agreement dated d[,d 24 ,2005. by and between the Town of Trophy Club, Texas, a home rule municipality, as Landlord, and Nextel bf Texas, Inc., a Texas corporation, d/b/a Nextel Communications, as Tenant. The Land is described andlor depicted as follows (metes and bounds description): APN: R167837 A WRITTEN DESCRIPTION OF THE LAND WILL BE PRESENTED HERE OR ATTACHED HERETO Ld 1, Block I, Trophy Club Recreation Cenler, an Additian to the Toin of Tmphy Club, Denton County, Tas, and king situated in [he J- Henry Sorvcy, Abstract No. 523, pursuant to Plat rccordcd in Cabinet T, Page 47, Map Rcm& of Dmon County, Tesas, and being more fully demied as fofIot~*~: That certain 6,000 acre mct of land situated in &t 3. HENRY SURVEY, ABSTRACT NUMBER 529, and bcing a portion of lhat tract of land described in deed t~ Beck Pmpmics Trophy Club, LP and record& in County CLcrC; Filc No. 93-RW87510, Real Propem Rccords, Dmton Cognty, Tcu, said 6.000 acrc txac~ of land being morc partiruldy dcsrncbed by metes and bounds as fo1lotr.s: BEGfiWING at a point in the east right-of-way line of ParLxicrv Drive (a 60' public Sghr-of-way), said poins bears N01WI 1'E, a distancc of 3 90.1 1 fed from the northvest comer of Lot 21, Block I, hkes of Trophy club, an addition to tbc Town of Trophy Club according to fie plat recodcd in Cabjn~ P, Page 73, Plat R~[:D~s. Dcnton County, Tms; TIENCE NOl*2Sl lUE, continuing dong the fast right-of-way lk of said Parh5cn, Drive, a distance of 109.89 ice! la 3 point at the beginning of a mnpe to he right having a radius of 74428 feet and ihosc long chord bcars Nl lnZ I'40mE, s distance of 257.04 fcct; THENCE dong $aid curvc to the righl, continuing along tht cast rjght-of-way line af =id Parkview Drivc, through a ctntnl angle of 19"53'1Sn, an arc Icn& of 258.34 fcct to a point a1 the end of said curve; THENCE S88"33'I8"E, IuGng the cast right-of-way line of =id Parkyicw DCSYC, a distzncc of 56832 fee to a point at the beginning of a cumc to ihc lclt having a radius of645.00 ferl and whose long chord bears h'B2*13'3 1 "E, a d&ncr or279-77 fccc THENCE along said cunpe to the le& through a ccnml angle of lS"t6'22". an arc Icngth of 27 1-94 Tctt to a paint at the cad of said curvc; TWE?KZ S29903'44"E, a distance of 36.96 fmt to a point at he bcginni~g of a non-tilngent cunrc to the Icfi having a radius of 550.00 feet and whose lang ch~rd bears S32'57'37"W1 a distance of 156.07 fecc mENCE ahng said curve to thc thfo=&h a ~cntfal andc of 1958'4UU, an in length of 185.97 feet to a pin! at the bcghing of a curve to at right having a ndiu of 500.00 fect and rvhosc lang chord bears S615827"Wn a distance of 475.92 feet; THENCE dong said CUNC to thc right, through a central angle of 56"50'20m, pn ierrgth of 496.01 fcci to 3 poiat d rhe end of &d curvc; THENCE NgP56'23"1V, a distance of 35238 fcet to 3 point; THENCE N44*15'36"SY, a distancc of 13-97 fmt to ~hc POlhT OF BEGINNING ad containing 2di,360 sqw fccr or 6.000 acrcs ofland All hat certain real property owed by TROPHY CLUB COMMUNITY IMPROVEMENT ASSOClA770N in the Tom ~FT~ophy Club, Dcnton Comty, Tern, Including but not Limited to the following 1. Tncts "A," "B." and "CY of TROPHY CLUB, 0.4K HILL, a subdivision out of the: C, Medlin Stwcy, Abstract No. 823; the J. R Rchrrel Survey, Abstract No. 821; and the Sf7. Medlin Survey, Abstract No. 829, Deoton County, Texas, according to he PIat thmf remwied in Volume 14, page 25, Pla! Records of Denton Cowsty, Texas (or any subsqurntly recorded Plat or Replat thmm f). 1. Tm "A" and "8" of FAIRWAY VILLAGE, a subdivision in Tmphy Club out of thc J, R Michad Survey, Abstracr No. 821, Dmton Cou~y, Taq according to he Plat thereof recorded in Volume 16, pagc 28, Plat Records aiD&itm County, T- (er my subsequentty reforded Plat or Replat thensf). 3, Tract "A" of LAIE FOREST VILUGE PHASE THREE, a subdivision in Traphy Club, out of the W+ H. Pea S~ey, Abstract No. 1N5 and the C. Me Survey, Abstract No. 823, Denton County, Texas, accodng to the Plal th.ermf mmded in Plat Cabiact 8, page 260, Flat Reconis of Dcnton County, Tcxs (or any subsqumt?y rccodcd Plat or Repla themof). 4. Tracts "8," "C," "D" and "E' of LAKE FOREST VLLAGE PHASE FOUR, a subdivision in Trophy Club, our of rht J. R. Mi&d Swq, Abstract NU. 821 and lhc C. Mcdlin Survey, Ahshct No. 823, Denton County, =as, amding to the P1a.f &emf recorded in Piat Cfi~ner B, piigc 21 1, Pfal Rmw& oh Dcntob Cmty, Texas (or any subsequently mcordcd Plat or Replat LhcrcaC), 5. Open Spacc d~scnied in Ncle 6 of TROPHY CLUB, SECTION SE4EiN, a subdivision out of the C- Mcdlin Survey, Abnract No. 823; thc 5. Suiton Sllrvq, iLbsbac1 No. 1 154; and the 3. hds Suruey, Abstract No. 392, Ourton County, TEX~~S, arsbrding ra thc PIsl thereof TCCQ& in Vofame 13, pase 4 1, Plat Rcco* aTDmtcm County, Texas (~r any subsequently recorded PIat or Rcplat therm f). 6. Tracts "A," "B" and T' of TROPHY CLUB, SEmON EIGHT, a subdivision out of the J. Sukton Survey, Abstract Na 1154 md the C. Mcdlin Survey, Abmcf No. 823, Denion Comty, Texas, attarding to iho Plat lhcnof recorded in Volnmc 15, pagc 12, Plat Records of Dcnion Counly, Texas (or any subseqrrcnlly recodd Plal or Repla! ulfxtmfl- 7. T~~~~ M41~ "8; md ti "DW of VILLAGE the J. Gds Survey, Abstract No. 392, the Sutccln Swg: Abstraci No. 1154, Denton County, Texas, according to the S~bdivision Plat ther~f nmrded in Cabinet C, Slide 171 of the Plat Records of Dcnton Count)., Taas {or my mbsequmtly recorded P23t or Replnt thcreoq- 8. Tracts "A* and "B" of VILLAGE WEST, SEC?1QN "%", a subdirision out af the J. Eads Survey, Abstract No- 392, and the R Eads Sutrrey, Abstract Na 393, Denton Counw, Texas, according to the Subdivision Plat thereof rrorded in Csbinct C, Slide 172 of &c Pla! Records of Dentaa County, Tcrxhs (or any subsequzntly recorded Plat or Rcplat thmf). EXHIBIT B DESCRIPTION OF PREMISES to the Agreement dated bL $q,, *ij ~+2005, by and between the Town of Trophy Club, Texas, a home rule municipality as Landlord and Nextel o Texas, Inc., a Texas corporation, d/b/a Nextel Communications, as Tenant. The Premises are described and/or depicted as follows: A DRAWING OF THE PREMISES WILL BE PRESENTED HERE OR ATTACHED HERETO Notes: 1. Tenant may replace this Exhibit with a survey of the Premises once Tenant receives it. 2. The Premises shall be setback from the Land's boundaries as required by the applicable governmental authorities. 3. The access road's width will be the width required by the applicable governmental authorities, including police and fire departments. 4. Without in any way limiting Paragraph 6 (or Tenant's right to make future changes), Tenant intends to initially install up to twelve (12) antennas, fifteen (15) coaxial cables and three GPS signal units and connections. The type, number, mounting positions and locations of antennas and transmission lines are illustrative only. The actual types, numbers, mounting positions and locations may vary from what is shown above. 5. The locations of any utility easements are illustrative only. The actual locations will be determined by the servicing utility company in compliance with all local laws and regulations. WROUGHT IRON PROPOSED NEX NEXTEL SHELTER 8' HlGH 25'x30' SCdEElV WALL AREA (WALL TO MATCH EXISTING SURROUNDING WALLS) UNDERGROUND COAXIAL PROPOSED 90'-0" HlGH FLAGPOLE- GRASSY AREA --, UTM n