AGENDA ITEM REPORT
TITLE:
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A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE THE ATTACHED EQUIPMENT TRANSFER AGREEMENT AND AUTHORIZING THE MAYOR TO EXECUTE THE TERMINATION OF MEMORANDUM OF AGREEMENT WITH SPRINT SPECTRUM REALTY COMPANY, LLC TO FACILITATE TENANT’S EFFORTS TO VACATE THE PREMISES AND TERMINATE ANY AND ALL OF TENANT’S LEGAL INTERESTS IN THE LAND.
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BACKGROUND:
The City owns the telecommunications tower within the City’s Lakeside Park, located at 5555 Regency Lakes Boulevard, Coconut Creek, Florida 33073. The City previously leased space to Sprint Spectrum Realty Company, LLC, successor-in-interest to Sprint Spectrum LP, successor-in-interest to Nextel South Corp., hereinafter collectively referred to as “tenant.” The tenant entered into a lease agreement with the City on August 27, 1998, followed by two (2) subsequent Memorandums of Agreement that were recorded in the Broward County Official Records Books. The originally contemplated term, including extensions, ended in 2018; however, the lease was automatically renewed on an annual basis thereafter. The tenant’s notice of non-renewal became effective in August of 2022. Since that time, the parties have negotiated the details of the tenant’s vacation from the premises, and those details are memorialized in the proposed documents.
DISCUSSION:
As stated, the tenant’s lease has expired; however, the tenant has not vacated the premises and currently has a holdover tenancy. To facilitate the tenant’s efforts to vacate the premises, the tenant and the City agree that title to the transferred property, which includes a shelter/foundation, power panel, electric meter and other miscellaneous equipment, shall pass to the City and shall not be removed by the tenant. The terms and conditions of this transfer are outlined in the Equipment Transfer Agreement. Further, the tenant and the City wish to formally terminate the tenant’s legal interest in the City’s real property through the recordation of a fully-executed Termination of Memorandum of Agreement, within the Broward County Official Records Books.
RECOMMENDATION:
Staff recommends approval of this resolution.
FISCAL IMPACT:
REVENUES: $10,000
EXPENDITURES: N/A
BUDGETED? No
NOTES: As part of the Equipment Transfer Agreement, the tenant agrees to make a $10,000 lump sum payment to the City in consideration of the remaining work to restore the property following the tenant’s departure. Funds will be deposited to Account No. 01-V36220, Tower Leases.