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HomeMy WebLinkAbout6.f. Property LeaseAGENDA ITEM: Property Lease AGENDA SECTION: Consent PREPARED BY: Dan Schultz, Parks and Recreation Director AGENDA NO. C f ATTACHMENTS: Proposed Lease Agreement APPROVED BY: 0 b RECOMMENDED ACTION: Motion to approve a lease agreement with Jeremy Groth to farm 57 acres of City owned property. 4 ROSEMOUNT CITY COUNCIL City Council Regular Meeting: May 19, 2009 EXECUTIVE SUMMARY ISSUE In June of 2008, the City Council approved leasing 57 acres of land owned by the City to a local farmer. The 57 acres of land is the property that Flint Hills donated to the City of Rosemount for a future athletic complex. Mr. Jeremy Groth, 1102 Bonaire Path, Rosemount, is the person who farmed the land in 2008 and prior to it being donated to the City of Rosemount. Mr. Groth had previously leased the property for around $65.00 per acre /per year. This information was confirmed with Don Kern from Flint Hills Resources. Mr. Kern indicated that the buffer property that they lease to farmers goes for between $40.00 and $90.00 per acre /per year based on soil conditions, topography, etc. Mary Tejen, City Attorney from Kennedy and Graven, developed the lease agreement in 2008 and felt it met the needs of the City and the wishes of the City Council to allow for the land to be used for farming on a short term basis. SUMMARY Attached is a new one year lease agreement that would allow Mr. Jeremy Groth to farm 57 acres of land owned by the City of Rosemount for a fee of $65.00 per acre /per year. The total amount the City will receive for this lease would be $3,705. Mr. Groth would make two lease payments to the City as detailed m the lease agreement. Staff is recommending the City lease the property to Mr. Groth. FARM LEASE AGREEMENT THIS LEASE AGREEMENT, made this day of 2008, by and between the City of Rosemount, a municipal corporation, "City and Jeremy Groth, 1102 Bonaire Path, Rosemount, Minnesota 55068 "Tenant 1. Property Description. The City hereby rents to the Tenant in consideration of the rents and promises hereinafter described the following property located in the County of Dakota and State of Minnesota, described on the attached Exhibit A (the "Property The Property contains 57 acres, more or less, of tillable agricultural fields. 2. Term. The term of this Lease is for one year commencing on the effective date of this Agreement and terminating one year later. The Lease may be renewed for additional one -year terms upon agreement of the parties. 3. Termination of the Lease. Either party may terminate this Lease after providing 90 days' written notice to the other party. 4. Rent. Rent is $3,705 per year, based on a per acre rate of $65.00, with $1,852.50 payable on December 1, 2009, and $1,852.50 payable on May 30, 2010. 5. Tenant Responsibilities. a. Crop farming only. Tenant may use the Property for crop fanning only. b. City access to property. Tenant will allow access to the Property by the City and its agents during all reasonable hours for the purpose of examining the Property to ascertain compliance with the terms of this Lease and for any other lawful purpose. c. Storage of equipment. Tenant shall not store any equipment or materials needed for farming the land on the Property. d. Payment of costs. Tenant will pay all costs related to farming the Property, including the cost of plowing under or removing crops and tilling the soil, at either the end of this Lease or upon Tenant's surrender of the Property. e. Insurance. Tenant will acquire and maintain property and liability insurance adequate for operations conducted on the Property. Tenant will provide proof of insurance upon request by the City. f. Indemnification. Tenant will indemnify, hold harmless, and defend the City and any of its agents or employees from any and all claims, demands, actions or causes of action arising out of the execution or performance of this Lease. 6. City Responsibilities. Billing. The City will invoice Tenant based on the rent schedule in paragraph 4 of this Lease. Tenant must make the rent payment within 30 days of receiving the invoice. 334098v2 MDT RS215 -7 1 7. Assignment and Subletting. Tenant may assign or sublease the Property only with the written consent of the City. If the City does not consent, it may, at its option, terminate the Lease. 8. Surrender of Possession. Tenant shall surrender the Property to the City in good condition and repair. Upon surrender of the Property by Tenant, Tenant must plow under or remove crops and till the soil. 9. Tenant's Default. Tenant will be in default of this Lease if one of the following occurs: By: Attest: a. Tenant fails to pay rent as provided in this Lease. b. Any voluntary or involuntary petition, or similar pleading, is filed under any section of any bankruptcy act by or against the Tenant or the Tenant is declared insolvent or unable to pay debts. c. Tenant fails to perform the responsibilities under this Lease. d. Tenant makes an assignment of any interest in the Lease or subleases the Property without the written consent of the City. In the event of any default or violation of this Lease continuing more than 30 days after written notification by the City to the Tenant, the City may enter into and take possession of the Property. 10. Lease Agreement is Binding: This lease agreement is binding upon the parties hereto and their heirs, successors and assigns. 11. Notification: Any notices related to the Lease shall be sent to the following addresses: Jeremy Groth City of Rosemount 1102 Bonaire Path Attn: City Administrator Rosemount, MN 55068 2875 145 Street W. Rosemount, MN 55068 -4941 IN TESTIMONY WHEREOF, the City and Tenant have set their hands as of the day and year first above written. CITY OF ROSEMOUNT TENANT William Droste Mayor Amy Domeier City Clerk 334098v2 MDT RS2I 5 -7 2 Jeremy Groth, TENANT