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