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HomeMy WebLinkAbout2025-03-17 I01G_06 Farm Lease_Keller. AGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: March 17, 2025 AGENDA ITEM:Consideration of approval of a resolution approving Farm Lease – Fixed Cash Rent [William Keller] FORMAT:Resolution SYNOPSIS INCLUDING PRO & CON: This is a farm lease for a portion of the City’s leased Raser property (11.27 acres) and the City owned parcel on the NE corner of NW Douglas Parkway and NW 20th Street (2.75 acres). Lease duration is one year starting on March 1, 2025 and terminating on March 1, 2026. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: Total annual rent $701.00 due on November 1, 2025. COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Approve the resolution. ATTACHMENTS: I. Resolution II. Farm Lease – Fixed Cash Rent PREPARED BY: Lisa Bauman REVIEWED BY: Rudy Koester RK I1G6 THE CITY OF WAUKEE, IOWA RESOLUTION 2025- APPROVING FARM LEASE – FIXED CASH RENT [WILLIAM KELLER] IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA WHEREAS, the City of Waukee, Dallas County, State of Iowa, is a duly organized Municipal Organization; AND, WHEREAS, the farm lease is for a portion of the City’s leased Raser property (11.27 acres) and the City owned parcel on the NE corner of NW Douglas Parkway and NW 20th Street (2.75 acres) with a duration of one year starting on March 1, 2025 and terminating on March 1, 2026. NOW THEREFORE BE IT RESOLVED by the City of Waukee City Council that the Farm Lease – Fixed Cash Rent is hereby approved, and the Mayor and the City Clerk are authorized to execute the Agreement for and on behalf of the City. Passed by the City Council of the City of Waukee, Iowa, and approved this the 17th day of March, 2025. ____________________________ Courtney Clarke, Mayor Attest: ___________________________________ Rebecca D. Schuett, City Clerk RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN R. Charles Bottenberg Chris Crone Rob Grove Anna Bergman Pierce Ben Sinclair ©The Iowa State Bar Association 2023 IowaDocs® Form No. 134, Farm Lease –Fixed Cash Rent Revised June 2017 FARM LEASE – FIXED CASH RENT THIS LEASE ("Lease") is made between City of Waukee, Iowa ("Landlord"), whose address for the purpose of this Lease is 230 W. Hickman Road, Waukee, IA 50263 and William Keller ("Tenant"), whose address for the purpose of this Lease is 1215 NW Williamsburg Lane, Waukee, Iowa 50263. THE PARTIES AGREE AS FOLLOWS: 1.PREMISES AND TERM. Landlord leases to Tenant the following real estate situated in Dallas County, Iowa (the "Real Estate"): Dallas County Parcel Numbers 1230100017 and 1229131001, as depicted on Exhibits A and B attached, and containing 14.02 tillable acres per county FSA records, more or less, with possession by Tenant for a term of 1 year(s) to commence on March 1, 2025, and end on March 1, 2026. The Tenant has had or been offered an opportunity to make an independent investigation as to the acres and boundaries of the premises. In the event that possession cannot be delivered within fifteen (15) days after commencement of this Lease, Tenant may terminate this Lease by giving the Landlord notice in writing. The following property on the Real Estate are reserved to Landlord: PARCEL NO.AREA DIMENSIONS PURPOSE 1230100017 Southern 4.1 acres 797’ x 224’Storage Yard 2.RENT. Tenant shall pay to Landlord as rent for the Real Estate (the "Rent"): Total annual cash rent of $701.00 payable, as follows: $701.00 on November 1, 2025. This cash rent has been determined as follows: Cropland 11.27 acres @ $50.00/acre = $563.50 Cropland 2.75 acres @ $50.00/acre = $137.50 TOTAL ANNUAL RENT $701.00 All Rent is to be paid to Landlord at the address above or at such other place as Landlord may direct in writing. Rent must be in Landlord's possession on or before the due date. Participation of this farm in any offered program by the U.S. Department of Agriculture or any state for crop production control or soil conservation, the observance of the terms and conditions of this program, and the division of farm program payments, requires Landlord's consent. Payments from participation in these programs shall be divided 0% Landlord 100% Tenant. Governmental cost-sharing payments for permanent soil conservation structures shall be divided 0% Landlord 100% Tenant. Crop disaster payments shall be divided 0% Landlord 100% Tenant. ©The Iowa State Bar Association 2023 IowaDocs® Form No. 134, Farm Lease –Fixed Cash Rent Revised June 2017 3.LANDLORD'S LIEN AND SECURITY INTEREST. As security for all sums due or which will become due from Tenant to Landlord, Tenant hereby grants to Landlord, in addition to any statutory liens, a security interest as provided in the Iowa Uniform Commercial Code and a contractual lien in all crops produced on the premises and the proceeds and products thereof, all contract rights concerning such crops, proceeds and/or products, all proceeds of insurance collected on account of destruction of such crops, all contract rights and U.S. government and/or state agricultural farm program payments in connection with the above described premises whether such contract rights be payable in cash or in kind, including the proceeds from such rights, and any and all other personal property kept or used on the real estate that is not exempt from execution. Tenant shall also sign any additional forms required to validate the security interest in government program payments. Tenant shall not sell such crops unless Landlord agrees otherwise. Tenant shall notify Landlord of Tenant's intention to sell crop at least three (3) business days prior to sale of the crop (with business days being described as Monday through Friday, except any Iowa or federal holidays). Tenant shall pay the full rent for the crop year in which the crop is produced, whether due or not, at the time of sale pursuant to Landlord's consent to release Landlord's security interests. Upon payment in full Landlord shall release Landlord's lien on the crop produced in that crop year on the premises. The parties agree that by the Landlord releasing the lien as to the crop in one year, the Landlord in no way releases the lien or agrees to release the lien in any prior or subsequent year. Tenant shall sign and deliver to Landlord a list of potential buyers of the crops upon which Landlord has been granted a security interest in this lease. Unless Landlord otherwise consents, Tenant will not sell these crops to a buyer who is not on the potential list of buyers unless Tenant pays the full rent due for the crop year to the Landlord at or prior to the date of sale. Landlord may give notice to the potential buyers of the existence of this security interest. Landlord is further granted the power, coupled with an interest, to sign on behalf of Tenant as attorney-in-fact and to file one or more financing statements under the Iowa Uniform Commercial Code naming Tenant as Debtor and Landlord as Secured Party and describing the collateral herein specified. Tenant consents to the financing statement being filed immediately after execution of this Lease. 4.INPUT COSTS AND EXPENSES. Tenant shall prepare the Real Estate and plant such crops in a timely fashion. Tenant shall only be entitled to pasture or till those portions of the Real Estate designated by Landlord. All machinery, inputs equipment, and labor, necessary to carry out the terms of this lease shall be furnished by and at the expense of the Tenant. Phosphate and potash on oats or beans shall be allocated 0% the first year and 0% the second year, and on all other crops allocated 0% the first year and 0% the second year. Lime and trace minerals shall be allocated over 0 years. If this Lease is not renewed, and Tenant does not therefore receive the full allocated benefits, Tenant shall be reimbursed by Landlord to the extent Tenant has not received the benefits. Tenant agrees to furnish, at Tenant’s cost, all labor, equipment and application for all fertilizer, lime, trace minerals and chemicals. 5.PROPER HUSBANDRY; HARVESTING OF CROPS; CARE OF SOIL, TREES, SHRUBS AND GRASS. Tenant shall farm the Real Estate in a manner consistent with good husbandry, seek to obtain the best crop production that the soil and crop season will permit, properly care for all growing crops in a manner consistent with good husbandry, and harvest all crops on a timely basis. In the event Tenant fails to do so, Landlord reserves the right, personally or by designated agents, to enter upon the Real Estate and properly care for and harvest all growing crops, charging the cost of the care and harvest to the Tenant, as part of the Rent. Tenant shall timely control all weeds, including noxious weeds, ©The Iowa State Bar Association 2023 IowaDocs® Form No. 134, Farm Lease –Fixed Cash Rent Revised June 2017 weeds in the fence rows, along driveways and around buildings throughout the premises. Tenant shall comply with all terms of any Natural Resource and Conservation Service (NRCS) conservation plan and any other required environmental plans for the real estate. Tenant shall do what is reasonably necessary to control soil erosion including, but not limited to, the maintenance of existing watercourses, waterways, ditches, drainage areas, terraces and tile drains, and abstain from any practice which will cause damage to the Real Estate. Tenant shall investigate and report all broken or inoperative tile lines to Landlord. Repairs and maintenance of tile will be paid for by: Tenant. Upon request from the Landlord, Tenant shall by August 15 of each lease year provide to the Landlord a written listing showing all crops planted, including the acres of each crop planted, fertilizers, herbicides and insecticides applied showing the place of application, the name and address of the applicator, the type of application and the quantity of such items applied on the lease premises during such year. Tenant shall distribute upon the poorest tillable soil on the Real Estate, unless directed otherwise by Landlord, all of the manure and compost from the farming operation suitable to be used. Tenant may take any part of the aboveground part of a plant associated with a crop, at the time of harvest or after the harvest, until the farm tenancy terminates. Tenant may use these materials upon the Real Estate for grazing livestock managed by Tenant but shall protect the real estate and all trees, vines, and shrubbery from injury by Tenant’s cropping operations or livestock. Tenant shall maintain accurate yield records for the real estate, and upon request, during or after lease term, shall disclose to Landlord, all yield base information required for participation in government programs. 6.ENVIRONMENTAL. a.Landlord. To the best of Landlord's knowledge: i.Neither Landlord nor Landlord's former or present tenants are subject to any investigation concerning the premises by any governmental authority under any applicable federal, state, or local codes, rules, and regulations pertaining to air and water quality, the handling, transportation, storage, treatment, usage, or disposal of toxic or hazardous substances, air emissions, other environmental matters, and all zoning and other land use matters. ii.Any handling, transportation, storage, treatment, or use of toxic or hazardous substances that has occurred on the premises has been in compliance with all applicable federal, state, and local codes, rules, and regulations. iii.No leak, spill release, discharge, emission, or disposal of toxic or hazardous substances has occurred on the premises. iv.The soil, groundwater, and soil vapor on or under the premises is free of toxic or hazardous substances except for chemicals (including without limitation fertilizer, herbicides, insecticides) applied in conformance with good farming methods, applicable rules and regulations and the label directions of each chemical. Landlord shall hold Tenant harmless against liability for removing solid waste disposal sites existing at the execution of this Lease, with the exception that Tenant shall be liable for removal of solid waste disposal sites to the extent that the Tenant created or contributed to the solid waste disposal site at any time. Landlord shall assume liability and shall indemnify and hold Tenant harmless against any liability or expense arising from any condition which existed, whether known or unknown, at the time of execution of the lease which is not a result of actions of the Tenant or which arises after date of execution but which is not a result of actions of the Tenant. Landlord shall disclose in writing to Tenant the existence of any known wells, underground storage tanks, hazardous waste sites, and solid waste disposal ©The Iowa State Bar Association 2023 IowaDocs® Form No. 134, Farm Lease –Fixed Cash Rent Revised June 2017 sites. Disclosure may be provided by a properly completed groundwater hazard statement to be supplemented if changes occur. b.Tenant. Tenant shall comply with all applicable environmental laws concerning application, storage and handling of chemicals (including, without limitation, herbicides and insecticides) and fertilizers. Tenant shall apply any chemicals used for weed or insect control at levels not to exceed the manufacturer's recommendation for the soil types involved. Farm chemicals may not be stored on the premises for more than one year. Farm chemicals for use on other properties may not be stored on this property. Chemicals stored on the premises shall be stored in clearly marked, tightly closed containers. No chemicals or chemical containers will be disposed of on the premises. Application of chemicals for agricultural purposes per manufacturer's recommendation shall not be construed to constitute disposal. Tenant shall employ all means appropriate to insure that well or ground water contamination does not occur and shall be responsible to follow all applicator's licensing requirements. Tenant shall install and maintain safety check valves for injection of any chemicals and/or fertilizers into an irrigation system (injection valve only, not main well check valve). Tenant shall properly post all fields (when posting is required) whenever chemicals are applied by ground or air. Tenant shall haul and spread all manure on appropriate fields at times and in quantities consistent with environmental protection requirements. Tenant shall not dispose of waste oil, tires, batteries, paint, other chemicals or containers anywhere on the premises. Solid waste may not be disposed of on the premises. Dead livestock may not be buried on the premises. If disposal of solid waste or burial of dead animals is permitted as stated in the previous two sentences, the disposal or burial shall be in compliance with all applicable environmental laws. Tenant shall not use waste oil as a means to suppress dust on any roads on or near the premises. No underground storage tanks, except human waste septic systems that meet current codes, rules, and regulations, shall be maintained on the premises. Tenant shall immediately notify Landlord of any chemical discharge, leak, or spill which occurs on premises. Tenant shall assume liability and shall indemnify and hold Landlord harmless for any claim or violation of standards which results from Tenant's use of the premises. Tenant shall assume defense of all claims, except claims resulting from Landlord's negligence, in which case each party shall be responsible for that party's defense of any claim. After termination, Tenant shall remain liable for violations which occurred during the term of this Lease. In the absence of selection of an alternative where choices are provided in this paragraph 6b, the choice of the words "may not" shall be presumed unless that presumption is contrary to applicable environmental laws and regulations. 7.TERMINATION OF LEASE. This Lease shall not automatically renew upon expiration. All notices of termination of this Lease shall be as provided by law. 8.POSSESSION AND CONDITION AT END OF TERM. At the termination of this Lease, Tenant will relinquish possession of the Real Estate to the Landlord. If Tenant fails to do so Tenant agrees to pay Landlord $0.00 per day, as liquidated damages until possession is delivered to Landlord. At the time of delivery of the Real Estate to Landlord, Tenant shall assure that the Real Estate is in good order and condition, and substantially the same as it was when received by Tenant at the commencement of this Lease, excusable or insurable loss by fire, unavoidable accidents and ordinary wear, excepted. ©The Iowa State Bar Association 2023 IowaDocs® Form No. 134, Farm Lease –Fixed Cash Rent Revised June 2017 9.LANDLORD'S RIGHT OF ENTRY AND INSPECTION. In the event notice of termination of this Lease has been properly served, Landlord may enter upon the Real Estate or authorize someone else to enter upon the Real Estate to conduct any normal tillage or fertilizer operation after Tenant has completed the harvesting of crops even if this is prior to the date of termination of the lease. Landlord may enter upon the Real Estate at any reasonable time for the purpose of viewing or seeding or making repairs, or for other reasonable purposes. Landlord retains the right to use or lease the Real Estate for hunting, fishing, or other recreational purposes, but such use shall not interfere with the regular operation of the farm and notice of entry shall be provided to Tenant three (3) days prior to entry for such purposes. Tenant may not use the Real Estate for hunting, fishing, or recreational purposes. 10.VIOLATION OF TERMS OF LEASE. If Tenant or Landlord violates the terms of this Lease, the other may pursue the legal and equitable remedies to which each is entitled. Tenant's failure to pay any Rent when due shall cause all unpaid Rent to become immediately due and payable, without any notice to or demand upon Tenant. 11.REPAIRS. Tenant shall maintain the fences on the Real Estate in good and proper repair. Landlord shall furnish necessary materials for repairs that Landlord deems necessary within a reasonable time after being notified of the need for repairs. Tenant shall haul the materials to the repair site without charge to Landlord. If a fence must be totally replaced Landlord will pay one-half of the labor. 12.IMPROVEMENTS. All buildings, fences and improvements of every kind and nature that may be erected or established upon the Real Estate during the term of the Lease by the Tenant shall constitute additional rent and shall inure to the Real Estate, becoming the property of Landlord unless the Landlord has agreed in writing prior to the erection that the Tenant may remove the improvement at the end of the lease. 13.WELL, WATER AND SEPTIC SYSTEMS. Tenant shall maintain all well, water and septic systems on the Real Estate in good repair at Tenant's expense except damage caused by windstorm or weather. Tenant shall not be responsible for replacement or installation of well, water and septic systems on the Real Estate, beyond ordinary maintenance expenses. Landlord does not guarantee continuous or adequate supplies of water for the Real Estate. 14.EXPENSES INCURRED WITHOUT CONSENT OF LANDLORD. No expense shall be incurred for or on account of the Landlord without first obtaining Landlord's written authorization. Tenant shall take no actions that might cause a mechanic's lien to be imposed upon the Real Estate. 15.NO AGENCY. Unless otherwise provided in writing, Tenant is not an agent of the Landlord. 16.HOUSING. In the event that housing is included in Section 2, Tenant may install and remove, without causing material injury to the Real Estate, Tenant's television reception antennas, microwave dishes, and radio reception and transmission antennas. Operating expenses shall be paid as indicated: Expense Paid by (mark one or indicate %) ©The Iowa State Bar Association 2023 IowaDocs® Form No. 134, Farm Lease –Fixed Cash Rent Revised June 2017 electricity 0 Tenant 0 Landlord telephone 0 Tenant 0 Landlord water and sewer 0 Tenant 0 Landlord garbage collection 0 Tenant 0 Landlord gas or heating oil 0 Tenant 0 Landlord cable/satellite TV reception 0 Tenant 0 Landlord Internet connection 0 Tenant 0 Landlord Minor repairs under $0.00 shall be paid by the Tenant. Repairs over this amount shall be made by mutual agreement of the Tenant and Landlord and paid as follows: . 17.ATTORNEY FEES AND COURT COSTS. If either party files suit to enforce any of the terms of this Lease, the prevailing party shall be entitled to recover court costs and reasonable attorneys' fees. 18.CHANGE IN LEASE TERMS. The conduct of either party, by act or omission, shall not be construed as a material alteration of this Lease until such provision is reduced to writing and executed by both parties as addendum to this Lease. 19.CONSTRUCTION. Words and phrases herein, including the acknowledgment, are construed as in the singular or plural and as the appropriate gender, according to the context. 20.NOTICES. The notices contemplated in this Lease shall be made in writing and shall either be delivered in person, or be mailed in the U.S. mail, certified mail to the recipient's last known mailing address, except for the notice of termination set forth in Section 7, which shall be governed by the Code of Iowa. 21.ASSIGNMENT. Tenant shall not assign this Lease or sublet the Real Estate or any portion thereof without prior written authorization of Landlord. 22.CERTIFICATION. Tenant certifies that it is not acting, directly or indirectly, for or on behalf of any person, group, entity or nation named by any Executive Order or the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person” or any other banned or blocked person, entity, nation or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control; and it is not engaged in this transaction, directly or indirectly on behalf of, or instigating or facilitating this transaction, directly or indirectly on behalf of, any such person, group, entity or nation. Tenant hereby agrees to defend, indemnify and hold harmless Landlord from and against any and all claims, damages, losses, risks, liabilities and expenses (including attorney’s fees and costs) arising from or related to any breach of the foregoing certification. 23.CHOICE OF LAW. This Lease shall be construed under the laws of the State of Iowa. 24.INSURANCE/TAXES. Landlord will pay all real estate taxes and maintain insurance on Landlord’s interest in the Real Estate. Tenant shall insure its interest in the Real Estate and maintain liability insurance that names Landlord as an additional named insured. 25.MEDIATION. The parties agree to mediate any dispute prior to litigation. 26.ADDITIONAL PROVISIONS. This farm lease is subject to approval by the City Council of the City of Waukee, Iowa. ©The Iowa State Bar Association 2023 IowaDocs® Form No. 134, Farm Lease –Fixed Cash Rent Revised June 2017 DATED: __________________________, 2025. TENANT: ________________________________ William Keller STATE OF IOWA, COUNTY OF DALLAS This record was acknowledged before me on ___________________________, 2025 by William Keller. _________________________________ Signature of Notary Public ©The Iowa State Bar Association 2023 IowaDocs® Form No. 134, Farm Lease –Fixed Cash Rent Revised June 2017 DATED: __________________________, 2025. LANDLORD: ________________________________ Courtney Clarke, Mayor City of Waukee, Iowa STATE OF IOWA, COUNTY OF DALLAS This record was acknowledged before me on _____________________________, 2025, by Courtney Clarke as Mayor of City of Waukee. _________________________________ Signature of Notary Public ©The Iowa State Bar Association 2023 IowaDocs® Form No. 134, Farm Lease –Fixed Cash Rent Revised June 2017 Exhibit A ©The Iowa State Bar Association 2023 IowaDocs® Form No. 134, Farm Lease –Fixed Cash Rent Revised June 2017 Exhibit B