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HomeMy WebLinkAbout2024-12-16 G01 Raser Family Trust Lease Agr_PHAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: December 16, 2024 AGENDA ITEM:Public Hearing on the consideration of a resolution authorizing action to enter into a Lease Agreement – Business Property from the General Fund. FORMAT:Public Hearing SYNOPSIS INCLUDING PRO & CON: The attached lease agreement is between the Raser Family and the City for a 15.33 acre parcel owned by The Raser Trust located on the SE quadrant of NW 30th St and 280th St. The Public Works Department would utilize approximately 5 acres of the total 15.33 acres for a material storage yard with the intent to lease the other 10 acres to a tenant farmer for crop farming. The lease term is from 1/1/2025 to 12/31/2027 with an annual payment of $4,400 due on January 1st. The agreement will auto renew for an additional 2 year term (indefinitely) unless either party provides 6 months of written notice to the other party of their intent to not renew the lease. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Hold the Public Hearing. ATTACHMENTS: I. Notice of Public Hearing II. Lease Agreement PREPARED BY:Lisa Bauman REVIEWED BY:Rudy Koester RK PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: DATE OF PUBLICATION: G1 (To be published on or before December 10, 2024) NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF WAUKEE, IOWA, ON THE MATTER OF THE PROPOSED AUTHORIZATION OF A LEASE AGREEMENT – BUSINESS PROPERTY (GENERAL FUND) IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $22,000, FOR REAL PROPERTY FOR USE BY THE CITY, AND THE PUBLIC HEARING ON THE AUTHORIZATION THEREOF PUBLIC NOTICE is hereby given that the City Council of the City of Waukee, Iowa, will hold a public hearing on the 16th day of December, 2024, at 5:30 P.M., in the Council Chambers, City Hall, 230 West Hickman Road, Waukee, Iowa, at which meeting the Council proposes to take additional action for the authorization of a Lease Agreement – Business Property payable from the General Fund, in the principal amount of not to exceed $22,000, the proceeds of which will be used in order to provide funds to pay costs of real property for use by the City, legally described as: Parcel Number 1230100017 located in the SE quadrant of NW 30th Street and 280th Street in Waukee, together with all improvements thereon, and all rights, easements and appurtenances thereto situated, for a term beginning on January 1, 2025, and ending on December 31, 2027, upon the condition that Tenant performs as provided in this lease. Said Parcel is 15.33 acres in size. Aggregate annual payments due from the general fund of the City on the proposed Lease Agreement – Business Property and all other lease agreements in force on the date of authorization will not exceed ten (10) percent of the last certified general fund budget amount. The annual increase in property taxes as the result of the issuance on a residential property with an actual value of one hundred thousand dollars is $0.00. This hearing is for a lease, payable from the general fund which has an established maximum levy limit within the statute. Accordingly, there are no additional tax implications as a result of this lease. This estimate only considers the impact on property taxes of the lease authority established by this hearing for the above-described project(s). At the above meeting the Council shall receive oral or written objections from any resident or property owner of said City, to the above action. After all objections have been received and considered, the Council will at this meeting or at any adjournment thereof, take additional action for the authorization of said lease agreement or will abandon the proposal. This notice is given by order of the City Council of Waukee, Iowa, as provided by Sections 364.4 and 384.25 of the Code of Iowa, as amended. Dated this 2nd day of December, 2024. Rebecca D. Schuett City Clerk of Waukee, Iowa (End of Notice) ©The Iowa State Bar Association 2024 IowaDocs® Form No. 165, Lease – Business Property – Short Form Revised January 2016 LEASE - BUSINESS PROPERTY - SHORT FORM THIS LEASE, made and entered into this ________ day of ____________________, 2024, by and between The Raser Family Trust dated 6/17/2005 ("Landlord"), whose address, for the purpose of this lease, is 914 San Pasqual Road, Escondido, California 92025 and City of Waukee, Iowa ("Tenant"), whose address for the purpose of this lease is 230 W. Hickman Road, Waukee, IA 50263. The parties agree as follows: 1. PREMISES AND TERM. Landlord leases to Tenant the following real estate, situated in Dallas County, Iowa: Parcel Number 1230100017 located in the SE quadrant of NW 30th Street and 280th Street in Waukee, together with all improvements thereon, and all rights, easements and appurtenances thereto situated, for a term beginning on January 1, 2025, and ending on December 31, 2027, upon the condition that Tenant performs as provided in this lease. Said Parcel is 15.33 acres in size. Upon the expiration of the lease term, the lease shall automatically renew for an additional 2-year term, unless either party provides 6 months written notice to the other of their intention not to renew the lease. 2. RENT. Tenant agrees to pay Landlord as rent $4,400.00 for per year, commencing on January 1, 2025, and on the 1st January each year thereafter, during the term of this lease. All sums shall be paid at the address of Landlord, or at such other place as Landlord may designate in writing. 3. POSSESSION. Tenant shall be entitled to possession on the first day of the lease term, and shall yield possession to Landlord at the termination of this lease. SHOULD LANDLORD BE UNABLE TO GIVE POSSESSION ON SAID DATE, TENANT'S ONLY DAMAGES SHALL BE A PRO RATA ABATEMENT OF RENT. 4. USE. Tenant shall use the premises for an outdoor storage yard and agricultural purposes as Tenant may determine. 5. CARE AND MAINTENANCE. A. Tenant takes the premises as is, except as herein provided. B. Landlord shall not be required to make any repairs, perform any maintenance, or make any replacements to the premises during the term of this lease. C. Tenant shall maintain the premises in a reasonable safe, serviceable, clean, and presentable condition, and shall make all repairs and replacements to the premises during the term. Tenant may install a fence enclosure and access gate on the property and shall be responsible for removing any snow and ice from the leased ©The Iowa State Bar Association 2024 IowaDocs® Form No. 165, Lease – Business Property – Short Form Revised January 2016 premises. Except for the installation of the fence permitted in this subsection 5(C), Tenant shall not make any alterations to the leased premises without Landlord’s prior written permission, which may be withheld or conditioned in Landlord’s sole discretion. 6. UTILITIES AND SERVICES. Tenant shall contract and pay for all utilities and services which Tenant decides to use on the premises. Landlord shall not be liable for damages for failure to perform as herein provided, or for any stoppage for needed repairs or for improvements or arising from causes beyond the control of Landlord, provided Landlord uses reasonable diligence to resume such services. 7. SURRENDER. Upon the termination of this lease, Tenant will surrender the premises to Landlord in good and clean condition, except for ordinary wear and tear or damage without fault or liability of Tenant. Continued possession, beyond the term of this Lease and the acceptance of rent by Landlord shall constitute a month-to-month extension of this lease on the same terms and conditions stated in this lease, except that rent shall increase to $500 per month. Upon the surrender of the premises any fence enclosure and/or gate installed by Tenant shall be left on the property together with any ground surface installed by Tenant. 8. INSURANCE. A. PROPERTY INSURANCE. Landlord and Tenant agree to insure their respective real and personal property for the full insurable value. Such insurance shall cover losses included in the special form causes of loss (formerly all risks coverage). To the extent permitted by their policies the Landlord and Tenant waive all rights of recovery against each other. 9. LIABILITY FOR DAMAGE. All personal property stored on the leased premises by Tenant shall be at the risk of the Tenant only. The Landlord shall not be liable for any damage to such personal property regardless of the cause or fault. 10. INDEMNITY. Tenant will protect, defend, and indemnify Landlord from and against any and all loss, costs, damage and expenses occasioned by, or arising out of, any accident or other occurrence arising out of or related to Tenant’s use of the leased premises, except for those occasioned by Landlord or its agents or resulting from the actions, or inactions of Landlord.. 11. DAMAGE. In the event of damage to the premises, so that Tenant is unable to conduct business on the premises, this lease may be terminated at the option of either party. Such termination shall be effected by notice of one party to the other within 20 days after such notice; and both parties shall thereafter be released from all future obligations hereunder. 12. MECHANICS' LIENS. Neither Tenant, nor anyone claiming by, through, or under Tenant, shall have the right to file any mechanic's lien against the premises. Tenant shall give notice in advance to all contractors and subcontractors who may furnish, or agree to furnish, any material, service or labor for any improvement on the premises. ©The Iowa State Bar Association 2024 IowaDocs® Form No. 165, Lease – Business Property – Short Form Revised January 2016 13. DEFAULT, NOTICE OF DEFAULT AND REMEDIES. EVENTS OF DEFAULT A. Each of the following shall constitute an event of default by Tenant: (1) Failure to pay rent when due; (2) failure to observe or perform any duties, obligations, agreements, or conditions imposed on Tenant pursuant to the terms of the lease; (3) abandonment of the premises. "Abandonment" means the Tenant has failed to engage in its usual and customary business activities on the premises for more than fifteen (15) consecutive business days; (4) institution of voluntary bankruptcy proceedings by Tenant; institution of involuntary bankruptcy proceedings in which the Tenant thereafter is adjudged a bankruptcy; assignment for the benefit of creditors of the interest of Tenant under this lease agreement; appointment of a receiver for the property or affairs of Tenant, where the receivership is not vacated within ten (10) days after the appointment of the receiver. NOTICE OF DEFAULT B. Landlord shall give Tenant a written notice specifying the default and giving the Tenant ten (10) days in which to correct the default. If there is a default (other than for nonpayment of a monetary obligation of Tenant, including rent) that cannot be remedied in ten (10) days by diligent efforts of the Tenant, Tenant shall propose an additional period of time in which to remedy the default. Consent to additional time shall not be unreasonably withheld by Landlord. Landlord shall not be required to give Tenant any more than three notices for the same default within any 365 day period. REMEDIES C. In the event Tenant has not remedied a default in a timely manner following a Notice of Default, Landlord may proceed with all available remedies at law or in equity, including but not limited to the following: (1) Termination. Landlord may declare this lease to be terminated and shall give Tenant a written notice of such termination. In the event of termination of this lease, Landlord shall be entitled to prove claim for and obtain judgment against Tenant for the balance of the rent agreed to be paid for the term herein provided, plus all expenses of Landlord in regaining possession of the premises and the reletting thereof, including attorney's fees and court costs, crediting against such claim, however, any amount obtained by reason of such reletting; (2) Forfeiture. If a default is not remedied in a timely manner, Landlord may then declare this lease to be forfeited and shall give Tenant a written notice of such forfeiture, and may, at the time, give Tenant the notice to quit provided for in Chapter 648 of the Code of Iowa. 14. SIGNS. Landlord, during the last 30 days of this lease, shall have the right to maintain on the premises either or both a "For Rent" or "For Sale” sign. Tenant will permit prospective tenants or buyers to enter and examine the premises. 15. NOTICES AND DEMANDS. All notices shall be given to the parties hereto at the addresses designated unless either party notifies the other, in writing, of a different address. Without prejudice to any other method of notifying a party in writing or making a demand or other communication, such notice shall be considered given under the terms of this lease