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HomeMy WebLinkAboutFIRST AMENDMENT LEASE AGREEMENTi FIRST AMENDMENT TO LEASE AGREEMENT THIS FIRST AMENDMENT TO LEASE AGREEMENT ("First Amendment") is made as of the day of �5 2006, between THE CITY OF MIAMI, a �: Municipal corporation of the.:��State of Florida (hereinafter referred to as the "City"), as Lessor, and BEASLEY-REED ACQUISITION PARTNERSHIP, a Delaware general partnership (hereinafter referred to as "BRAP" or "Tenant'), as Lessee. RECITALS A. The City and Hernstadt Broadcasting Corp. ("Original Tenant") entered into that Lease Agreement dated September 3, 1982 (the "Lease"), pursuant to which Original Tenant leased certain:premises consisting of approximately two and two-tenths (2 2/10ths) acres, located on Virginia Ivey, City of Miami, Dade County, Florida (the "Properly"); B: Original Tenant assigned the Lease to Howard Broadcasting Corporation ("Successor Tenant"), pursuant to an Assignment of Lease dated October 17, 1986, which assignment was approved by the City by letter dated November 24, 1986; C. Successor Tenant assigned an undivided one-half (1/2) interest in the Lease to §unshine Wireless Company, Inc. pursuant to an Assignment of Lease dated August 31, 1987, which assignment was approved by the City on August 10, 1987; D. Sunshine Wirel ss Conip`ai `7''assigi d its undivided one. -half interest in the Lease to BRAP which assigr�if "lig to gtoved bythe City by Const to Assignment and Assumption dated AugusC T4Ig96'. E. With the City's consent, Successor Tenant assigned all of its remaining right, title and interest in and to the Lease to BRAD pursuant to a Consent to Assignment and Assumption dated August 11, 2000; and F. The City and BRAD desire tto:jenter__into__this--First-Amendment for the " puipose of extending the term of•t4ee L cease; and for the other purposes set forth herein. D. Section 29-B of the City's Charter, authorizes the city commission to grant a lessee of city -owned property a one-time extension during the last five years of its lease, without the necessity -for' a°'t�eferer duin, for the purposes of funding additional capital improvements, for an extended term not to exceed 25% of the original term or 10 years, whichever is less, and provided the lessee is not in default of its lease nor in arrearage of any monies due the City. E. Tenant represents to- the City that it is not in default of the lease or in arrearage of any monies due the City. £ �y t � 4 T� Z A�j�• ays:Docurnent Amendment -Beasley-Reed (2006)-Voc F. Pursuant to Resolution- No. 06-0332, adopted May 25, 2006, the city commission, by 4/5 votes; ­`authorized the extension of the term of this lease for an additional term of 6 years under the terms and conditions set forth hereinafter. TERMS NOW THEREFORE, for Ten Dollars ($10.00) and for the covenants and conditions of this First Amendment,the receipt and sufficiency of which are acknowledged, Landlord and Tenant agree as follows: 1. Recitals. The foregoing recitals are correct and are incorporated herein by this reference. 2. Terns. All undefined capitalized terms used herein shall have the same meanings as defined in the Lease. 3. Extension. _ The term of the Lease is .hereby extended for a period of six (6) years from the original expiration -date provided in the Lease, until September 2, 2013, subject to the terms and conditions set forth herein. The period from September 3, 2007 through September 2, 2013 is referred to:"herein as the "Extension Term". 4. Annual Rental .y Section 6 • ("Consideration") of the Lease is hereby amended to include the following -two paragraphs at the end of said Section: "Notwithstanding the above; commencing on September 3, 2007, Tenant shall pay to the City an annual rental fee of One Hundred Fifty Thousand and No/100 Dollars ($150,000.00) (the "Annual Rental'), paid in egtllal monihly -installments of Twelve Thousand Five Hundred and-Doilazs ('S,12,500.00). On September 3, 2009, and every §tp*mb&`-3-'41166after until the Extension Term ends, the Annual"Reiiial payment shall be increased automatically by an amount equal"five percent (5%) of the preceding year's Annual Rental and likewise be paid in equal monthly installments. _ _ __- - The City-shall--us-6 the Annual Rental fees for the purposes specified in Resolution No. 06-0332. As further consideration for the Extension Term, the Tenant shall have completed, by September 2, 2009, capital improvements to the broadcast towel; `ifs ap�Tflaiy equipment, and Premises in an amount of not less'` 'An $50,000. The capital improvements shall include but are not' trrsi fed 61he following: replacement of the generator fuel cell; %e 5ettmg ofposts., backfilling the tower base to protect pier and the ground`s stem, painting outside of the building and tower, and any emergency repairs caused by natural elements, such as hurricane damage. Furthermore, the Tenant shall. have completed by September 2, 2010, additional capital improvements ors:Document Amendment - Beasley -Reed (2006) DOFC { �I' •? `fit. �., i , F E in an amount not less than $50,000 in replacement of the antenna's main generator" 5. Insurance. Section l'8. of the Lease entitled "insurance" is hereby deleted in its entirety and repl4d6d with the following: "Tenant shillo'l kn ajid maintain, or cause to obtained and maintained, throughout 'the term of the Lease the types and amounts of insurance coverage set forth in Exhibit A, attached hereto and incorporated herein by this reference." 6. Notices. Section 24 is hereby amended to provide the following addresses as the Notice Address: To BRAD: Beasley -Reed Acquisition Partnership 3033 Riviera Drive, Suite 200 Naples, Florida 34103 Attn:. Caroline Beasley Tel: (239) 263-5000 Fax: (239) 263-8191 With a copy to: Tevv Cardenas LLP FourSeas, ons Tower, 15th Floor 1441'grickell Avenue Miami; Floridit 33131 I. Grossman, Esq. t Tel: :, (305),536-8468 Fax`.'" (30S).536-1116 To City: -,City of Miami City Manager 3500 Pan American Drive _ - Miami-,-Florida-33133-- Fax Florida 33133Fax ,}-i (3Q5);250-5410 With a copy to: City of Miami Attn: Director Department of Public Facilities 444 SW 2nd Avenue, 3rd Floor Miami,;; Florida 33130 Tel: QQ5X416-1452 Fax:, ; (3Q5) 41�-2156 , ors:Documenl Amendmnt - Beasley -Reed (2006).DOC t otherwise required^by ADA or;other Tenant shall take affirmative steps employment of disabled persons. applicable law. Additionally, the to ensure nondiscrimination in the 10. A new Section 36 is hereby added to the Lease, as follows: 36. Termination (a) Termination bytheCify In addition to the termination provisions provided in Section 17'6f the 'Luse, the City shall have the following termination nght from and after September 3, 2008, the City may terminate the Lease, ' upon not less than one hundred eighty (180) days written notice toBRAP. which notice may not be provided sooner than September 3, 2008. (b) Termination by BRAD. From and after September 1, 2008, BRAP may terminate this Lease upon not less than one hundred eighty (180) days written notice to the City, which notice may not be provided sooner than September 3, 2008. (c) in the event ithie . Extension. Term is terminated pursuant to the provisions of thisiSeetran-36 "n a' date that is earlier than the expiration of the Extension` Tetra, the `;Anriu'al Rental shall be pro -rated accordingly. Upon such termination of this Lease, all rights and privileges derived from, and all duties and obligations created and imposed by the provisions of this Lease, shall terminate and have no further force or effect, including but not limited to Tenant's requirements to make any capital improvements to the` -Premises as provided herein. 11. A new Section 37 tg he1 eby addet to the Lease, as follows: 37. Audit'Andiil spectich Rights:'' The City inay,'at reasonable times, and for a period of up to three (3) years fol loYvingAhe-date-of-final-payment by Tenant under this Lease audit, or cause to be audited, those books and records of Tenant which are related to this Lease. Tenant agrees to maintain all such books and records at its principal place of business for a period of three (3) years after final payment is made under this Lease 12. Brokers. The parties hereby`warrant'that they have had no dealings with any real estate broker or ageni r conYr e foil with the negotiation of this First Amendment. Tenant agrees to,rndi;rrtirf`yr`"icfi hold' fhe City harmless from and against :. the claims of any real estate broker m„aking claims by or through Tenant. 13. City's Right to Enter Property: The City reserves the right to enter the property for the purpose of conducting environmental inspections and clean-up, so Iong ors:Document Amendment -Beasley-Reed (2006). AOC 0 as said activities do not interfere with the use or operation of the property and its improvements by Lessee. 14. Entire Agreement..' The Lease, as amended by this First Amendment, constitutes the entire agreement and understanding among the parties with respect to the subject matter hereof. 15. Miscellaneous.'1 a. In the evenf-�any term or provision of this First Amendment be determined by appropriate judicial authority to be illegal or otherwise invalid, such provision shall be given its nearest legal meaning or be constrbed as deleted as such authority determines, and the remainder of this First Amendment shall be construed to be in full force and effect. b. In construing this First Amendment, the singular shall be held to include the plural, the plural shall, include the singular, and the Use of any gender shall include every other and all genders. C. Descriptive, -headings contained herein are for convenience only and shall not control or affect the meaning or construction of any provision of this First Amendment. d. This First Amendment may be executed in any number of counterparts and by the separate :parties hereto in separate counterparts, each of which shall be deemed an original, but all, of which shall constitute one and the same instrument. C. This First Arr�endment sliait be deemed a }part of the Lease, but ii shall take precedence over and supersede any provisions to the contrary contained in the Lease. IN WITNESS WHEREOF, the parties have executed this First Amendment as of the day and year first written above. BRAP: Witness: .BEASLEY-REED ACQUISITION PARTNERSHIP, a Delaware limited partnership Print Naliie GAR Er W PLN (0� ors:Docurnent Amendment - Beasley -Reed (2006) Print Name: A Title: �)Jp QFD THE CITY: CITY OF MIAMI, a municipal corporation of the State of Florida ATTEST: By: By: riscilla A. T Wmpson, Cit Clerk P -�?a City Manager Approve As To Forrn And Correctness: Jorge L. , a ez, City Attorney /�/ Approved As To Insurance Requirements: Risk Management apartment orsDocument Amendment -Beasley-Reed (2006).DOC EXHIBIT A INSURANCE REQUIREMENTS Tenant agrees to have the following policies of insurance in effect and will provide duly authorized certificates of insurance to the Risk Manager for the City of Miami to confirm the existence of such policies of insurance to gain physical access to the parcel(s) of land owned by the City of Miami which are described in the Lease. Such policies of insurance are to be in effect no later than the date of physical access to such lease area by Tenant, its employees, officers, guests, contractors and subcontractors pursuant to the Lease: 1. . Commercial General Liability subject to limits and endorsements as shown below: A. Limits of Liability: Bodily injury and property damage liability each occurrence: $1,000,000 General aggregate limit: $2,000,000 Products/completed operations: $1,000,000 Personal and advertising injury: $1,000,000 B. Endorsements required: City of Miami included as additional insured Employees included as insured Independent contractor's coverage Waiver of subrogation Explosion, Collapse and...upderground 44zacd II. All Riskro ert is ranee a !inst.loss or damage b fire, windstorm, with P A Yn.. tl ��- . g Y such endorsements for,ext�de�d4Eoverage, vandalism, malicious mischief, flood and special coverage,,,Tsuring 100% of the replacement cost of Tenant's improvements, fixtures, equipment, furniture and all other personal property in and about the lease area. This requirement -may -be waived_ provided that Tenant -- executes a full release holding the City harmless for any damages incurred by Tenant due to the above mentioned causes as defined in a standard All Risk policy. III. Workers Compensation Limits of liability Statutory -State of Florida Waiver of subrogation The above policies shall provide the City of Miami with written notice of cancellation or material change from the insurer not less than (30) days prior to any such cancellation or material change. ors.Document Amendment Beasley -Reed (2006).00C' Companies authorized to do business in the State of Florida with the following qualifications, shall issue all insurance policies required above: The company must be rated no less than "A-" as to management and no less than Class V as to financial strength by the latest edition of Best's Insurance Guide, published by A. M. Bests Company, Oldwick New Jersey, or its equivalent. All policies and/or certificates of insurance are -subject to-reyiew and verification by Risk Management prior to insurance approval. Receipt "of any documentation of insurance by the City or by any of its representatives, which indicates less coverage than required does not constitute a waiver of the Tenant's obligation to fulfill the insurance requirements herein. In the event Tenant shall fail to procure and place such insurance, the City may, but shall not be obligated to, procure and place same, in which event the amount of the premium paid shall be paid by Tenant to. the City as an additional fee upon demand and shall in each instance be collectible on, the first day of the month or any subsequent month following the date of payment by the City. Tenant's failure to procure insurance shall in no way release Tenant from its obligations and responsibilities as provided herein. The City's Division of Risk Management, reserves the right to reasonably amend the insurance requirements by the issuance of a notice in writing to Tenant. The Tenant shall provide any other insurance or security reasonably required by the City rl ors:Document Amendment - Beasley -Reed (2006).DOC A i , + 7 , ors:Document Amendment - Beasley -Reed (2006).DOC .LEAwE AGREEMENT I THIS LEASE AGREEMENT'made tlis 3 day of September, 1982, between the CITY Ot MIAMI, a Municipal corporation of the State of Florida, hereinafter called the "City", and HERNSTADT BROADCASTING CORP., a Florida corporation, a/k/a WKAT AM RADIO i with offices at 1759 Bay'Road,; Miami Beach, Florida 33131, here- inafter referred to as -'IWKAT'.'I I T. WI-TNES-SETH.:, WHEREAS, the C y of"Miami has advertised for and received development "proposals by bid invitation for the lease of approximately three (3) acres of property owned by the City on Virginia Key for the construction, maintenance and operation of a broadcast tower communications facility; and WHEREAS, the proposal as presented by WKAT, is in the best interest of the publ!c, and WHEREAS, the i3 oposal contemplates the furnishing, delivery, installation and maintenance of a broadcast tower com- munications system with,all safety and other equipment required by federal, state or local law, as well as all required permits and approvals; and NOW, THEREFORE; in consideration of the premises and the mutual covenants and conditions=herein contained, it is agreed by the parties hereto '4s foilows: T'. t k �, i 1. Description of ,remises. The City7,hereby leases unto WKAT for the purpose and under the conditions hereinafter set forth, the following described - - fvbl- property consisting -of approximately two point two (2.2) acres (hereinafter referred to as the "Property"), located on Virginia Key, City of Miami, Dade County, Florida, described as follows: The actual leased area is thit area shown cross- hatched on the.." -6hed 'ketch (Exhibit A), which is also legally described on Exhibit "A-1" attached hereto. The City, in addition to the above-described premises, provides the following easements for the term of this Agreement: SPARBER, SHEVIN ROISEN SHAPo 3.HEILBRON,NER PROFESSIONAL ASSOCIATION n - 30th FLOOR, AMER)FIRST BUILDING, ONE SOUTHEAST 3rd AVENUE, MIAMI, FLORIDA 33131 4 (a) Transmit_er arid'Tower"Easement. Commence at the N.W. Corner, Section 16 Township 54-S Range 42-E; thence easterly along the North line of said Section 16 a distance of 1250 feet; thence southerly along the westerly property line and its northerly prolongation.thereof of the Miami -Dade Water and Sewer Author,ity''s SewageTreatment Plant located on`Vi=rgnia Key; a distance of 2340 feet to the S.W. Corner of said Sewage Treat- ment Plant Property- thence;ea,st along the South propert?, fine: off' saxd 'Treatment Plant a distance of `27b->tf`eet'; thence south a distance of 460 feet to ,a point; said point being the center of a circle having a radius of 400 feet and the location of the transmitter tower. The above circular area comprises 11.5± Ac. (See Exhibit "B"). (b) 20 -Foot Roadway Easement. The centerline of a 20 -foot wide roadway easement is described as follows: Commence at a point,, -414.2.5 feet northerly of the trans- mitter tower said point also being 107.5• feet south of the 'southerly fence line of the Sewage Treatment Plant; thence run easterly and northeasterly parallel with said fence` line for approximately 2050±.feet to its intersection with the Virginia Key Access Road at the easterly entrance of the Treat- ment Plant and there terminating. 2. Term. The term of this Lease. Agreement shall be for twenty-five (25) years from the. date,her'eo. 3. Use of the Prope,rty'a;nd..Development of Broadcast Facility The Property_3aased hereunder shall be used solely for the construction, maintenance and operation of a broadcast tower and communications facility and no other business activities shall be carried on at said Property without the specific written consent of the City Manager or his.authorized representative, which consent shall not be unreasonably, withheld. The transmis- 4.2 sion of obscene or indecent programmingA_from_the-facility-is specifically prohibited. Tn�.;facility shall be located in approxi- mately the position depicted on Exhibit A attached hereto. It is understood and agreed between the parties that all site development will be the responsibility of WKAT and the City_makes no guarantee as to the condition of the site. All development and construction plans for the facility shall be submitted to the City flog its approval which approval shall not rZ- SPARSER, SHEVIN, ROSEN. SHAPO & HEILBRONNER PROFESSIONAL ASSOCIATION 301" FLOOR, AMERIFIRST BUILDING, ONE SOUTHEAST 3rd AVENUE, MIAMI, FLORIDA 33131 be unreasonably withheld. The ,specific types of communication equipment to be acquired, installed and used by WKAT in the construction of the faoity shall be a matter for its sole discretion but shall,�ncludP provisions. for telecommunications dish -type receivers. A primary purppse of the broadcast facility shall be for the improvement of the City's communication system. The City's Fire and Police Department's communication needs shall receive high priority in',the development and utilization of the system so as to better se i<,ve the„Publ.ic needs. Additionally j- -WKAT shaIl, provide to the City at no cost to the City the following: JJ (a) A maximum of four hundred (400)✓scruare feet of space within the building constructed upon the leased premises for use by the City in the storage and operation of the City's communications equipment to be maintained by the City on the premises. (b) Space on the broadcast tower for the installation for use by the City of fiv=_ 5j.antennas, consisting of two (2) Microwave"antennas; two (2) UHF antennas (five (5) feet lonq,onaz(1) in -diameter) and one (1) Electronic Phase Array Radar antenna. The Microwave antennas will be eight (8)-f: i._tameter, wind resistance radome and weight fifty fifty (50) pounds each. .Torque guyi`d'shall -be used with the microwave antennas. The Electronic`Phase Radar Antenna's physical specifica- tions will be defined by the parties within one (1) month from the date of this Lease. (c) Electrical power and utilities necessary for the City transmitter facilities. Should WKAT use the site.for construction of satellite antenna facilities Wi.AT or,-Vits?';$ub�essee shall further provide to the City the following (;,-ii,s section. does not apply too the radio tower, but only to satellite antennas added to other areas of the -property); _ (a) Fifty-one percent (51';) usage of any cable or other communications system interconnecting Virginia Key with the mainland for the City's radio control network including connection-to.the John L. Knight conference center and the ;roof of:,the ;new- Southeast Bank Building when it is completed (b) Maintenance Q�'+pommiin�tations:.services between the City's communadatioiis�-system.'and the Virginia Key antenna facil'i:ty';via 0 -distribution point on the main- land. (c) Full time;uhL nkYand;downlink communications services including all.electronic peripheral conversion and supporting equipment i -f the Asite is used for such facilities. The broadcast antenna and tower specifications shall include the following: (a) Full-length access for technicians, as required by the Federal Occupational Safety and Health Administration standards (O.S„H.A.). (b) The tower andatltenna installation shall be thoroughly inspected byngualifi.ed--personnel at least twice a year and remarked w},th hazarsd and warning labels to insure safety and propefr performance. (c) A chain link security. fence ten (10) feet minimum in heighth tgppe,d.11;q barbed wire so as to attempt to prevent vandalism and bodily -injury of tresspassers shall be installed. Additionally, WKAT shall perform the following: (a) It shall maintain and keep all facilities, including the access road, operational during the term of this Lease. (b) It shall provide.;sufficient shielding of uplink antennas so that the radiation'level shall meet O.S.H.A. standards and/or the American National Standards Institute (A.N.S.I.) standards, whichever is more 'stringent. (c) In addition to making the facilities available to the City as defined above, WI:AT shall provide space as recruired for other governmental agencies including but not limited to the Florida Marine Patrol, and the Florida Department of Transportation as well as the City of Miami's Fire and Police. The City shall.. permit and,WP•.AT shall utilize the tower constructed upon the leased premises-fOr broadcasting facilities and for the installatxoP,gf tglecommunication dish -type receivers so that the general paiblzc; in the; City, will be able to benefit from this technology. Al -1 development and construction work to be performed by WKAT shall be subject to the standard permit process. WKAT shall maintain in clean and safe condition all materials, equipment and improvements constructed upon the premises as well as the including but not limited to all safety a;�d pther,equipment required by federal, state or local law. The City shall cooperate with WKAT in con- nection with the installation and construction of all necessary safety features so as to assist WKAT in expediting the construction of the improvements upon the premises. 4. Easements This City does hereby grant unto WKAT a perpetual easement for the term of this Lease and any renewals thereof for the purpose of access to the leased premises which easement shall run approximately paralle7. to,'the ex;i.sting south fence line of the Miami -Dade Water and Sewer. Authority Sewage Treatment Plant �.._. , located adjacent to the Property. Any improvements necessary to provide adequate access across said easement area shall be borne by WKAT. All plans and specifications for the development and construction of the access road.across the easement property shall be submitted to the City Manager for his approval which approval shall not be unreasonably withheld. The City further grants unto WKAT an easement for the installation of ground systems installed by"WK�fi in connection with its construction of the broadcast facilitie5`contemplated hereunder. Said easements shall run across those premises owned by City adjoining the subject property in such areas as the subject grounds systems may be installed at the mutual agreement of the parties. It is futher understood and agreed that the City shall not construct r nor permit any third part} to'construct" any buildings or other improvements upon the pdrtibn of premises under which the ground system are installed unless said buildings are wooden in nature and readily removable. This easement shall likewise run for the term of this Lease and any renewals or extensions thereof. WKAT does hereby grant unto City an easement across such portions of the leased premises as are necessary, to permit City access to the Property for the purpose of inspecting, main- taining and/or operating the facilities made available to City in accordance with Paragraph 3 above. 5. Construction and Rights to Construct Additional Facilities. WKAT agrees that it shall complete the construction of all improvement contemplated hereunder within two (2) years from the execution date of this Lease Agreement. Additionally, WKAT shall have the right to_c-onstr�uct,_ at. ,_any time during the term -5- hereof, a standby electrical plant for the providing of a neces- sary power supply to the facilities constructed upon the leased property. Should WKAT elect to construct such facility it shall submit the plan thereof`to_the City Manager for his approval which approval shall not be unreasonably withheld and all such construction shall be in accordance with good construction prac- tices and ordinary permit procedures. o. Consideration. The consideration to be paid to the City by WKAT for the leased property shall be equal to an annual rental fee of Forty -Eight Cents (48�)':pez square foot, -of property leased, which fee shall be paid in equal -:installments on a monthly basis. Should the exact square footage of the leased property not be determined as of the date hereof then same shall be determined as soon as practicable by a licensed surveyor and thereupon the annual rental due hereunder shall be determined. All rentals shall be due on the first day of.each and every calendar month during the term of this Lease. .Said rent shall be paid to the City in legal tender of_theyUnited States of America, without demand therefore and be -:paid at the Office of the Director of Finance of the City or at such other place as the City may from time to time designate by notice in writing to INKAT. WRAT shall additionally pay any and all applicable sales and/or use taxes due in connection with the rent and any increases thereto or any other taxes or charges.imposedupon or resulting from occupancy and use of the said premi.s.es.,.S,ai.d sales. and use taxes shall be added to the rental payments and forwarded to the City as part of said payment on the first day of each and every month. It is the intent hereof that the City receive the rental amount as net, free and clear of all costs and charges arising from or relating to the demised premises. The rental due hereunder shall commence upon the earlier of: (a) The completion of the construction of all improvements and facilitaes;::to be constructed upon the subject premises and by the City of a Certificate of Completion and such other approvals as may-be required by the City or @4iy federal, state or governmental agency authorizing the use of the facilities for their intended purposes by WKAT; or (b) February 1, 1983. The annual rentals set forth above shall be subject to increase to reflect increases in the cost of living. The.base rent payable under this Id'ase may be increased as follows: COST OF LIVING (a) the base rent`')"for eaCh'year of the term Z; this Lease;-='commencing on the second anni- versary date,of the payment of rentals here- underr shall be increased by a percentage equal to the percentage increase of the consumer price index-U.S. average (CPI) issued by the United States Department of Labor on each anniversary date of the payment of rentals under this Lease x dhta3 V :-Un e t is' a All'.such percentage increases shall be paid :equally over the twelve (12) months of thet i ease,::year.; E (b) in the event thatthe CPI as now pub- lished is not available at any time during the term of this Lease or has been altered or modified then the party shall use such other index as may be substituted for the CPI by the United States Department of Labor to measure general increases in prices. Any such substituted index, shall be applied by the parties hersto as interpolated, so as not to reduce the additional rent merely by virtue of the ,cn4nge-, in the, index use or the formula by which the index is determined. It is the intent of„.the;parties that this provi- sion shall at all times cause the base rent to be increa;sed,;annvally in, proportion to any decrease it the-:purchasing power of the United States cIo:llar and any,increase in the cost of living commencing with the effective date of the first such adjustment to the rentals being as aforesaid. Nothing contained herein shall cause the rent and additional rent paid in any.year to be less than the -- - rent--and./or -additional rent-paid-in -any prior year. , (c) The CPI increase to,the basee shall accrue commenc pq wi-; h .the tsecond anniversary date of the pa--�,qnti of.;;rentals under this Lease and the_frst,,such payment thereof shall be on'the_;­first day of the month follow- ing notice by-the City to WFAT of the amount of such increase. The first such additional rent payment for each year shall include the additional rent payments for that year which have accrued but have not yet been paid. (d) Notwithstanding anything contained hereinabove to the contrary it is agreed that if the amount of increase exceeds six percent (6%) in any one year, that the lessee and lessor shall agree to a fixed amount of public service announcements or other exchanges as negotiated for the amount in excess of six percent (5°;) in the preceding lease year. 7. F.C.C.Approval- The parties:fiere o agree`and-`acknowledge that this Lease is conditioned and'"contingent: upon the Federal Communica- tions Commission's approval of the premises and the facilities to be constructed thereon and the use of same by WKAT for the purposes intended. Should said approval not be obtained then this Lease shall be deemed cancelled and terminated and of no further force and effect and each of the parties shall be released and relieved of any and all further obligations to the other as a result hereof. 8. Granting of iRis3hts to.Co-Users b 4y KAT. The parties hereto agree that WKAT shall be permitted to allow other types of communication networks to utilize the facilities constructed by.it such as, ambulance companies, inter- com companies, other broadcasting stations, etc. Should WKAT elect to do so it shallcause :siich other users to utilize the facilities in a manner.not'to interfere with the use of the a. facilities by the City as provided for in Paragraph 3 hereof. In the event WKAT enters into such agreement with other users of the facilities it shall be entitled to charge such users an appropri- ate fee for the use thereof as well as any and all other consider- ations as may be deemed appropriate between WKAT and said co -user in_cornection_with_the contribution toward the construction -- -- - costs, utility charges, use fees, management fees, etc. Notice of the granting of any such rights to co -users shall be given to - I the City but no objection to same shall be made by the City unless said use would in any way interfere or conflict with the City's access to use of the facilities as provided for elsewhere herein." 9. Subsequent Requirements of City for Change of Facilities 1 & Maintenance. Should the City or any of its.subdivisions or agencies granted use rights of the system by WKAT request any changes therein, following the'conipletion of the initial construction of the antenna system, or find it necessary to repair and/or maintain its portion of the system, the cost of such repair, maintenance or change, including but not limited to the addition or removal or change of any antenna or transmission line, shall be borne by the City or such agency requesting said change. Said costs shall include the required remeasurement of the antenna resistance by a person qualified to make such measurements together with the cost attendant upon filing such measurements in pursuing the grant of authority to determine antenna power by direct measurement. Furthermore, any such co -user of the facilities shall maintain a stock of isocouplers of appropriate values to provide replacements when needed to protect the broadcast stations against having to operate for long periods -of reduced power using indirect measure- ..- ment. No such maintenance',: repairs or changes shall be conducted in a fashion that would in any way unduly interfere with, or hinder the operation of the facilities utilized by WKAT or a I co -user. Injunctive relief may be sought in the event of a breach of this covenant. 10. Non -Discrimination. , WK&T agrees that,theze will be no discrimination under any circumstances against any person on account of race, color, ser., religious creed, ancestry, or national origin in connection with the operations referred to by this Lease. Any such acts will be considered a default ,subject to the terms and conditions of Paragraph 18, and it is expressly understood that upon -final determination of such discrimination, the City shall have the right to terminate thi.s`-,Lease-Agreement. 11. Permits. WKAT agrees to -have final plans prepared which will comply with all pertinent provisions of the South Florida Building -9- Code and the ordinances,,,rules;and regulations of Dade County and the City of Miami. WKAT agrees that no structure of any kind now existing on the Property shall be altered or a new structure erected upon the Property unless the plans for said construction have been approved by the City Manager and the Director of Build- ing and Zoning Inspections Department of the City, which approval shall not be unreasonably.withheld or delayed. As a condition. to this. Lease, WKAT shall obtain at its sole cost and expense, a11;_permits, approvals, and related documents from any and all Federal, State, and local governments and agencies required to construct, maintain, utilize and occupy the facilities contemplated hereunder. 12, Performance Bond. WKAT shall—within ten (10) days from the date hereof or in no event later than., -the commencement of construction or the - awarding of any contract for construction on the Property by it or any of its agents, furnish the City with a Performance Bond, in the amount of One Hundred Thousand Dollars ($100,000.00), naming the City as the owner and WKAT as the principal. The Performance Bond shall insure the faithful completion by WKAT of the improvements contemplated to be constructed upon the Property in'accordance with the t6-rms and conditions hereof. WKAT, in. its discretion may post a One Hundred Thousand Dollar ($100,000.00) cash deposit with the City;to meet this obligation or in lieu thereof provide a Performance Bond, the form and content of which shall be subject to the reasonable approval of the City. The Performance Bond or cash deposit shall be terminated, and refunded to WKAT as applicable, with the written approval of the City Manager of the City, at such time as the proposed construction is completed and fully operational..,. 13. Licenses. WKAT aarees to obtain and pay for all required licenses necessary for the proposed operation and conduct of its business, at the leased premises. -10- 14. Taxes. During the term hereof, WKAT covenants and agrees to pay all tares of whatsoever nature lawfully levied or assessed against the Property and improvements, property, sales, rents or operations thereon, including, but not limited to, ad valorem taxes. Payment thereof .shall commence with and shall include tares assessed for the current year, subject to proration as of the year of commencement of the term, if any there shall be. WKAT further covenants and agrees to pay all of the said taxes, if any, lawfully assessed, on such dates as they become due and payable. The failure of WKAT to pay the taxes as aforesaid shall constitute grounds for the immediate....cancellation of this Lease Agreement by the City, subject to the terms and conditions of Paragraph 18. Nothing contained herein shall be deemed to prohibit WKAT from contesting, byappropriatemeans, any tax it deems in good faith to have been improperly levied or assessed. 15. Books, Records, Accounts and Statements. WKAT shall keep true, accurate, and complete books, records, and accounts of all business being transacted upon the Property. Further, it shall, upon demand make available all books and records, reports_and',.financial statements in any way Pertaining to the Property to authorized representatives of the Office of Internal Audit, or such other authorized representatives as the City Manager shall designate, at the Property during normal business hours. The Internal Auditing Department of the City shall be furnished any and all records of WKAT necessary to make a full and complete audit of the books and operations of the facilities described ii- this Lease Agreement, limited to the operation of the tower and this property. Such information shall not be considered public record. 16. Examination of the Premises bathe City. WKAT agrees to permit the City, by its City Manager's designated personnel, to enter upon the Property at any reasonable time for any purpose the City Manager of the City deems necessary _ll- or incidental to or connected with the performance of City's duties and obligations hereunder or in the exercise of its rights or functions. 17. Default. If WKAT abandons or vacates the Property prior to the expiration of the term hereof; or If WKAT fails to make the rental payments as set forth herein and said payment is not made within thirty (30) days after written notice is given to it; or If WKAT fails t.q,perform in accordance with any of the other terms and conditions.`herein contained, and such default is not cured within thirty`J3.0) days after written notice is given to it or if the nature of the default is such that i� cannot reasonably cure' same within said period and it fails to take diligent measures to commence and pursue the cure thereof, within said thirty (30) day period, then the City may re-enter the Property and terminate this lease inr.any manner then permitted or provided by law. At such time,. all improvements erected on the Property shall revert to.the,City- In addition to the right to re-enter and terminate the lease, the City, in case of a breach in the payment of rent or in case of the breach of any other of WKAT's obligations hereunder, shall have all other remedies, including but not limited to the right to operate the facilities or other remedies afforded by the laws of the State of Florida, including but not limited to, the right to sue for and collect rent, and to bring distress proceed- ings. Said remedies may be pursued concurrently or consecutively and the resort to one shall not be considered an election. 16. Insurance. WKAT shall maintain during the term of this Agreement a comprehensive Public Liability Insurance Policy, including contin- gent liability, in the amount of not less than a combined single limit of $1,000,000 ver "occurrence for death, bodily injury and property damage. The City shall:be named as an additional insured under said policy and same shall provide that the City be given at least thirty (30) days advance written notice of cancellation of said policy or any material modifications thereof. The form and content of the policy and the insurance carrier shall be acceptable to the City of Miami Risk Management Division, and a copy of -an insurance certificate shall be placed on file with the Lease•,Manag?r, City of Miami Finance Department, 65 S.W. First Street, Miami, Florida 33130, before WKAT can commence operation or construction on the premises. All insurance policies shall be issued by companies authorized to do business under the laws of the State of Florida and must be rated at least "A" as to management and Class "X" as to financial strength, all in accordance with Best's Insurance Guide, latest edition. The City reserves the right to amend the insurance requirements according to usual and customary standards in the Insurance Industry as circumstances dictate in order to protect the interest of the City in this Lease Agreement. Any equipment owned by City and maintained by it on the leased premises shall be insured.by City and not WKAT. 19. Indemnification. WKAT covenants and agrees that it shall indemnify and save harmless the City from and against any and all claims, suits, actions, damages or causes of action arising during the term of this Lease Agreement for any personal injury, loss of life, or damage to property sustained in or on the leased property by reason of or as a result of VIKAT's use, activities, and opera- tions thereon, and from and against any orders, judgments or decrees, which may be entered,thereon, and from and against all costs, attorneys' fees, expenses, and liabilities incurred in and about the defense of such claim and the investication thereof so long as such damage or injury does not occur as a result of the negligent act or omission,of, the City, its agent or employees; provided further, however, that before WKAT shall become liable for said cost, WKAT shall be given notice in writing that the same are about to be incurred and shall have the option itself to make the necessary investi.yation and employ counsel of its own selection for the necessa'y defense of. any claims. The City may, at its option, retain its -•own counsel at its sole cost and expense in addition to the provisions hereinabove set forth. 20. Damage or Loss to WKAT's Property. WKAT assumes all risk of damage or loss to the Property for any cause whatsoever, except if such damage or loss is caused by the negligent act or omission of the City, its agents or employees. WKAT shall provide any security measures it deems necessary to protect its.area and equipment, materials and facil- ities_ 21. Maintenance of Property. WKAT accepts the leased property in its present condition and without any warranty by the City as to same. WKAT, at its sole cost and expense, ,shall maintain the grounds, all equipment, facilities and improvements constructed thereon to the extent z utilized by it in connection herewith. WKAT further agrees to maintain the Property and all improvements thereon in a condition of proper cleanliness, orderliness, and state of attractive appearance at all times. Any housekeeping service required to properly maintain the premises shall be provided by WKAT at its sole cost. No signs or advertising shall be placed on the premises unless the consent of the lCity li's first obtained, which consent shall not be unreasonably withheld. There shall be no living quarters nor shall anyone be permitted to live or cook on the Property. If the Property is not kept reasonably clean and attractive in appearance, WKAT shall be so advised. Corrective action shall be taken by WKAT within seven (7) days time. In the event such action is not taken, the City shall have the right to make repairs or cause the_,Poperry to be cleaned and WKAT shall e. then be required to reimburse -the City within thirty (30) days -14- for said cost and charges. The maintenance required to be per- formed by WKAT pursuant to -this paragraph shall be conducted in a fashion that would not unduly interfere with, or hinder the operation of the portion of the facilities utilized by the City. Injunctive relief may be sought in the event of a breach of this covenant. 22. Trash, Rubbish and Garbage Removal. I WKAT shall provide at its expense all garbage, trash and rubbish receptacles within the confines of the leased Property. Dumping of receptacles and removal of trash, rubbish, and garbage shall be the responsibility of VIKAT. 23. Utilities. WKAT shall provide all utility lines to the Property. It shall further be responsible to provide to the City all neces- sarv,utilities required by City,_ with regard to its permitted use of the facil, t t to the City during the full, term of _... --- aa _ no o cc os— _. th i G rear - 24. Notices. Wherever notice -shall be required hereunder, same shall be deemed given when sent in writing, by hand delivery or sent by U.S_ Mail, certified, return receipt requested, to the parties as follows: TO THE CITY: The City Manager The City o£;Miami, Florida P O. Box 330708 MiaMi-. Florida ,33133 TO THE COMPANY: 1KAT t: I :Attn: William Hernstadt 1759 Bay Road Miami Beach, Florida 33139 The City or VIKAT may change such mailing addresses at any time upon giving the other party written notice. All notices, given hereunder shall be deemed received when delivered or on the date noted by the U.S. Mail on the return receipt that such mailina was refused by the addressee or otherwise impossible to deliver at the subiect address- -15- 25. AttorneysFees'. In the event that it is deemed necessary for either party to file a lawsuit in the appropriate court of law in order to enforce any of the terms or provisions of this Lease Agreement, then the prevailing party shall be entitled to reasonable attor- neys' fees. 26. Conf ormi ty 'to: the Law. WKAT covenants to comply with all laws, ordinances, regulations, and orders -.of Federal, State, County and Municipal authorities pertaining to the Property and operation thereon. 27. Pledge of Leasehold Interest. WRAT may pledge this leasehold interest as security for a bona fide loan obtained in connection with the construction and operation of the facilities to be developed upon the Property, provided, the quality of the assignee is approved by the City Manager, which approval may not be unreasonably withheld. This section shall under no circumstances be construed to require the City to participate in the financing of the proposed improve- ments. The City shall fully cooperate with WICAT in respect to the reasonable requirements of, its lender. 28. Assignment and Subletting of Premises. WKAT shall not_at any time during the term of this Lease Agreement sublet any, part of the Property or assign this Lease Agreement or any�po'rtion or part thereof, except and by virtue of written authorization granted by the City Manager or City Commission of the City. Saidauthorizationshall not be unreasonably withheld or delayed./ Any purchaser of WKAT who has received FCC approval for acquisition of the station shall be deemed an approved sublessee.; This provision shall not apply to co -user agreements as.contemplated in Paragraph 9 hereof, so long as the portion of the facility made available for said co -user is not then being utilized for public purposes. 29. Bindino on Successors. The terms and provisions of the Lease Agreement shall, be binding and inure to the benefit of the successors and assigns respectively of the City and WI.kT. 30. Ownership of Improvements. All improvements, furnishings and equipment constructed or installed on the Property by WKAT shall be personal property and WKAT shall have legal title thereto during the t4rm of this Lease. Upon the expiration or termination of this Lease, title to all permanent improvements constructed on the premises shall vest in the City and WI:AT shall quietly and peaceably deliver the same to the City. Title to all supplies, furnishings, inventories, removable fixtures and removable equipment including the radio tower and antenna system and other personal property shall remain vested with WKAT and it shall have the right to remove such items from the premises at its expense unless it is then in default hereunder_ Should WY:AT elect, it shall have the right to leave the radio tower and antenna system on the premises at the expiration of this Lease and said action shall be deemed to constitute a gift of same to the City,,unlessthe parties have otherwise agreed to a purchase and sale of:said equipment for good and valid consideration paid by the.City to WKAT. 31. Miscellaneous. A waiver of the breach of any of the covenants of this Lease Agreement shall not be construed to be a waiver of any other covenant or any succeeding breach. The provisions of this Lease Agreement contain the entire understanding of the parties hereto concerning, the subject matter hereof. No modifications, release, discharge or waiver of aiiy of the provisions hereof shall be of any force and effect unless signed in writing by the City Manager of the City and WKAT by its appropriately designated corporate officers. 32. Captions. The captions contained in this Lease Agreement are inserted only as a matter- of "convenience and for reference and in -17- no way define, limit or prescribe the scope of this Lease Agreement or the intent of any provisions thereof. IN WITNESS WHEREOF, the parties herein have executed this Agreement the day and year first above written. CITY OF MIAMI, FLORIDA a municipal cor ration BY: ATTES u CI R CI CLERK HERNSTADT BROADCASTING CORP., a/k/a WKAT AM RADIO, a Florida corporation ATTEST: BY: SECRETARY VICE-PRESIDENT GENERAL MANAGER APPROVED AS TO FORM AND CORRECTNESS-. Z TY ATTORNEY 004/585D SPARSER, SHEVIN, POSEN, SHAPO & NEILBRONNEaPROFESSIONAL ASSOCIATION 90lhFLOOR AMERIFiRSTBUILDING, ONE SOUTHEAST 3rd AVENUE MIAMI FLORIDA331%1 ( SEA _L ) ;Err,•.. •ir'r ..,._. EXHIBIT "A-1" Commence at the Northwest corner, of Section 16, Township 54 South, Range 42 East; thence easterly along the north line of said Section 16 a distance of 1,250 feet; thence southerly along the westerly property line and its northerly prolongation thereof of the Miami -Dade Water and Sewer Authority's Sewage Treatment Plant located on Virginia Key, a distance of 2,340 feet to:'the Southwest corner of said Sewage Treatment-Plant'Property, thence east along the south property line of said treatment plant a distance of 270 feet; thence south a distance of 35 feet to the point of beginning; thence east a distance of 18.2 feet to a corner; thence south a distance of 25 feet to a corner; thence west a distance of 8.2 feet to a corner; thence south 191.3 feet to a corner; thence east 336.4 feet to corner; thence south 30° east a distance of 20 feet to a corner; thence south 600 west a distance of 394.2 feet to a corner; thence south 394.2 feet to a corner; thence west a distance of 20 feet to a corner; thence north a distanbe of 394.2 feet;.:to a•„corner;;thence north 60° west a distance of ,,3.94.2 feet to a corner; thence north 30° east a distance of 20 feet to a corner; thence east a distance of 336.4 feet to a corner; thence north 191.3 feet to a corner; thence west a distance of 8.2 feet to a corner; thence north a distance of 25 feet to a corner; thence east a distance of 18.2 feet to the point of beginning; described leasehold parcel containing 2.2 more or less acres (95,832 square feet t). 004/585H SPARSER, SHEVIN, ROSEN, SHAPO 6 HEILBRONNEA PROFESSIONAL ASSOCIATION 30th FLOOR, AMERIFIRST BUILDING, ONE SOUTHEAST 3rd AVENUE. MIAMI, FLORIDA 33131 r - -344 Q,1'CD.CON'�V Cr g I�1 GUY W1 E.5� 1'1 o3�•4 5t O 50 \00 ZA, ` .?QC 3 `100 N . 3 ! i MIAMt'—DADF— W4'rF-R & 5EWE-R AUTHORITY o u U W A., G F— T R E P,77 M E N T h v ' Zoo. 21 Q �� tl, 53�'pj�ti4- _ o tl,s3�