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HomeMy WebLinkAbout6.g. Property LeaseAGENDA ITEM: Property Lease AGENDA SECTION: Consent PREPARED BY: Dan Schultz, Parks and Recreation Director AGENDA NO. (0, G ATTACHMENTS: Proposed Lease Agreement APPROVED BY: V RECOMMENDED ACTION: Motion to approve a lease agreement with Jeremy Groth to farm 57 acres of City owned property. x ROSEMOUNT CITY COUNCIL City Council Regular Meeting: June 3, 2008 EXECUTIVE SUMMARY ISSUE During the special City Council Work Session on Tuesday, May 6, 2008, staff indicated to the City Council they we had received a few inquiries from local farmers who were interested in farming the land that was donated o the City for the outdoor recreation complex. The City Council supported the idea if the City Attorney and Flint Hills Resources felt it was appropriate. The City Attorney did not see any issues with it and staff spoke to Don Kern from Flint Hills Resources, who also did not see an issue with it. Jeremy Groth, 1102 Bonaire Path, Rosemount, is the person who farmed the property prior to it being donated to the City of Rosemount and has shared his interest in continuing to farm the land if development of the outdoor recreation complex was to be delayed. Mr. Groth 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 and feels it meets 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 one year lease agreement that would allow Mt 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. There would be two payments made to the City. The City would invoice Mr. Groth. Should the City Council approve the attached lease and Mr. Groth also sign the lease, the farming could start as soon as June 4. 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 1102 Bonaire Path Rosemount, MN 55068 IN TESTIMONY WHEREOF, the City and Tenant have set their hands as of the day and year first above written. CITY OF ROSEMOUNT Jeremy Groth, TENANT William Droste Mayor Kim Lindquist Acting City Administrator 334098v2 MDT RS215 -7 2 City of Rosemount Attn: City Administrator 2875 145 Street W. Rosemount, MN 55068 -4941