HomeMy WebLinkAbout2008-06-16-Resolutions 08-138_Farm Lease - CollinsTHE CITY OF W AUKEE,IOWA
RESOLUTION 08-138
APPROVING A FARM LEASE BETWEEN ROD COLLINS AND THE CITY OF
WAUKEE
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE,IOWA
WHEREAS,City Staff had received an inquiry to lease for farming purposes property owned by
the City;AND,
WHEREAS,the City Council believes that it is in the best interest of the City to lease the
property to Rod Collins for fair market value which will,in addition to providing rental income
to the City,assure the property's use and mitigate maintenance expense to the City;AND,
WHEREAS,the terms of the one year lease with Rod Collins are contained in the lease
attached as Exhibit A.
NOW THEREFORE BE IT RESOL YED that the Farm Lease attached as Exhibit A should be
and the same is hereby approved.The Mayor is hereby authorized to sign the lease on behalf of
the City.
Attest:
Passed by the City Council of the City of Waukee,Iowa,and approved this the 1
2008.
ROLL CALL VOTE
Donald L.Bailey,Jr.
Casey L.Harvey
C.Isaiah McGee
Darlene Stanton
Mike Watts
AYE
X
X
X
X
NAY ABSENT ABSTAIN
X
THE IOWA STATE.BAR ASSOCIATION I Steven P.Brick I FOR THE LE.GAL EFFECT OF THE USE OFOfficIa.l Form NQ.1::JS THIS FORM,CONSULTYOUR LAWYER
tr~~~,FARM LEASE -CASH OR CROP SHARES-.•r -•
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THIS LEASE ("Lease")is made between City of Waukee,Iowa,a municipal corporation
("Landlord"),whose address for the purpose of this Lease Is230W.HlckIrian Road,Waukee,LA 50263 ,and
Rod Collins ,("Tenant"),whose
address for the purpose of this Lease is 31593 Puckerbrush Rd.Adel,IA 50003
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"):
All that part of the Southwest Quarter (SW \4)of Section 33,Township 79 (79)North,of Range 26
(26)West of the 5th P.M.,Dallas County,Iowa,lying West of the West right-of-way line of 6th
Street as currently established,subject to all easements and reservations of record.
AND
The Southwest Quarter of the Southwest Quarter (SWl/4 SW 1/4)of Section 36,Township 79
North,Range 27 West of the 5th P.M.,Dallas County,Iowa.
AND
.The Northwest QU81ter of the Southwest Quarter (NW1I4 SWII4)of Section 36,Township 79
North,Range 27 West ofthe 5th P.M.,Dallas Couoty,Iowa.
'Excluding that portion of property depicted on the Survey attached as Exhibit A.
and contalnjnq 80.25 (tatal)(til1ah.le)acres,more or less,with possession by Tenant for a term of 1 years to
commence on 04/01108 ,and end on December 1st ,2008 .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
capnof -be delivered within fifteen (15)days after commencement of this Lease,Tenant may terminate this Lease by giving the
Landlord notice in writing.
2.RENT.Tenant shall pay to Landlord as rent for the Real Estate (the "Rent"):
a.Total annual cash rent of $14,043.75 payable,unless otherwise agreed,as follows:
$7,021.88 on 1st day of May 2008 .s 7,021.88 on 1st day of
October 2008 I and $on day of ;or
b.Crop share-%at corn,%of soybeans,and %
of other crops raised on the Real Estate.
All Rent is 10 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 dividedo%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.
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 andlor stale 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 exam pt from execution.Tenant shall also sign any additional forms required to validate the security
interest in government program payments.
@ThelowaSlatsBarAssociation2008 135 FARM Lr::ASE.CASH OR CROP SHARES
IOWAOOCS@ Hevlsed January 2D08
I
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 holJdays).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 mterests.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 nofice 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 85 Secured Party and
describing the collateral herein specified.Tenant consents to the financing statement being filed Immediately after execution of this
Lease.
4.INPUT CO&fS AND EXPENSES.Tenant shall prepare the Real Estate and plant such crops In a timely fashion as may be
directed by enant (Landlord)(Tenant).Tenant shan only be entitled 10 pasture or liII those portions of the Real
Estate designated by Landlord.All necessary machinery and equipment,as well as labor,necessary to carry out the terms of this lease
shall be fumished by and at the expense of the Tenant.The following materials,in the amounts required by good husbandry,shall be
acquired by Tenant and paid for by the parties as follows:
%Landlord
(1)Commercial Fertilizer ,.
(2)Lime and Trace Minerals .................•.,••,,.
(3)Herbicides ...................••.,.,.•...............,..
(4)"lnsectlcldes •••.,................•"....•,.
(5)Seed ••..,.••.........,,....•.,,,..,,..,..,.
(6)Seed cleaning ........................•..•,.......,.
(7)Harvesting and/or Shelling Expense ,......•.,.,,,..
(8)Grain Drying Expanse .....•...•...,................••,,..
(9)Grain Storage Expense ....•.,.............•.....•.•..,.
(10)Other .•,..•,,.•..,,,•........,.,
o
%TonanlOO100a
a 100a100a100o100a100a100a100a100
Phosphate and potash on oats or beans shall be allocated %the first year and %the
second year,and on all other crops allocated %the first year and %the second year.Lime and
trace mlnerals shall be allocated over 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 exlent Tenant has not received the benefits.Tenant agrees to
furnish,without 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 Estale 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 wlth good husbandry,and harvest all crops on a timely basis.In the event
Tenant fails {a do so,Landlord reserves the right,personally or by designated agenls,10 enter upon the Real Estate and properly care for
and harvest all growing crops,charging the cost of the care and harvest 10 the Tenant,as part of the Rent.'fen ant shall timely control all
weeds,lncludlng noxious weeds,weeds in the fence rows,along driveways and around buildings throughout the premises.Tenant shall
comply with all terms of tile conservation plan and any other required environmental plans for the leased premises.Tenant shall do what
is reasonably necessary to control soil erosion InclUding,but not limited to,the maintenance of exlstlnq watercourses,waterways,ditches,
drainage areas,terraces and tile drains,and abstain from any practice which wlll cause damage to the Real Estate.
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 tho acres of each crop planted,fertilizers,herbicides and Insecticides applied shOWing tho 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 liIIable 5011on the Real Estate,unless directed otherwise by Landlord,all of the manure
and compost from 1he farming operation suitable to be used.Tenant shall not remove from the Real Estate,nor burn,any straw,
stalks,stubble,or similar plant materials,all of which are recognized as the property of Landlord.Tenant may use these materials,
however,upon the Real Estate for the farming operations.Tenant shall protect all trees,vines and shrubbery upon the Real Estate from
injury by Tenant's cropplnq operation or livestock.
Tenant shall maintain accurate yield records for the resl estate,and upon request,during or after lease lerm,shall dIsclose to
Landlord,all yleld base information required for participation In government programs.
6.DELIVERY OF GRAIN.If this lease is a crop share lease,Tenant,without cost to Landlord,shall deliver Landlord's grain
pursuant to request,at reasonable times,to the elevator at '_
or elsewhere at no further distant point.
7.LANDLORD'S STORAGE SPACE.If this lease is a crop share lease,Landlord reserves %of all crib and
granary space for storage of the rent share crops.
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8.ENVIRONMENTAL.
a.Landlord.To the best of Landlord's knowledge to date:
i)Neither Landlord nor,Landlord's former or present tenants,are subject to any investigation concerning the premises by any
governmental authorily under any applicable federal,state,or local codes,rules,and regulations pertaining to air and water
quality,the handling,transportatlon,storage,treatment,usage,or disposal of toxic or hazardous substances,air emlaslons,
other environmental matters,and all zoning and other land use matlers.
Ii)Any handling,transportation,storage,treatment,or use of loxic or hazardous substances that has occurred on the
premises has been in compliance wllh all applicable federal,state,and local codes,rules,and regulations.
iii)No leak,spill release,discharge,emission,or disposal of toxtc or hazardous substances has occurred on the premises.
Iv)The soli,groundwater,and soil vapor on or under ills premises is free of toxic or hazardous substances except (UI
chemicals (including without IimitatJon 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
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 Ihe
Tenant or which arises after date of execution but which is not a result of actions of the Tenant.
Landlord shall disclose in wrltrng to Tenant the existence of any known wells,underground storage tanks,hazardous waste
sties.and solid waste disposal 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,wilhoutllmltatlcn,herbicides and InseclJcides)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)(may not)be stored on the
premises for more than one year,Farm chemicals for use on other properties {may)(may not)be stored on this property.Chemicals
stored on the premises shall be stored In clearly marked,tightly closed containers.No chemIcals Of 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 ferlilizers into an irrigation syslem (injection valve only,not main well check varve).Tenant shall properly post alt fields
(when posling is required)whenever chemicals are applied by ground or air.Tenanl 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,lires,batteries,
paint,other chemicals or containers anywhere on the premises.Solid waste fn'tayJ (may not)be disposed of on the premises.Dead
livestock"fmay)(may not)be buried on the premises.If disposal of solid waste or burial of dead animals is permitted as stated -in the
previous twa 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 thls Lease,
In the absence of selection of an alternative where choices are provided in this paragraph 8b,the choice of word "may"
shall be presumed unless that presumption Is contrary to applicable envlronmental laws and regulations.
9.TERMINATION OF LEASE,This Lease shall automatically renew upon expiration from year-to-year,upon the same terms and
conditions unless either party gives due and timely written notice to the ether of an electlon not to renew this Lease.[f renewed,the
tenancy shall terminate on March 1 of lhe year following,provided thaI the tenancy shall not continue because of an absence of notice in
the event there is a default in the performance of thia Lease.All notices of termination of this Lease shall be as provided by law.
10.POSSESSION AND CONDITiON AT END OF TERM.At lhe termination of this Lease,Tenant will relinquisl1 possession of
the Real Estate 10 the Landlord,If Tenant falls to do so Tenant agrees to pay Landlord $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 Estale is in good order and condition,and SUbstantially the same as 11 was when received by Tenant at the
commencement of this Lease.excusable or insurable loss by fire,unavoidable accidents and ordinary wear,excepted.
11.LANDLORD'S RIGHT OF ENTRY AND INSPECTION,In the event nolice of termination of this Lease has been properly
served,Landlord may enter upon the Real Estate Of 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.
12.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,wilhout any notice to or demand upon Tenant.
13.REPAIRS.Tenant shall maintain the fences on the leased premises in goad and proper repair.Landlord shall furnish
necessary materials for repairs that Landlord deems necessary wllhln a reasonable time after being notified of the need for repairs.
Tenant shall haul the materials to the repair site without charge 10 Landlord.
I
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14.NEW 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 erecUon that the Tenant may remove
the improvement at the end of the lease.
15.WELL,WINDMILL,WATER AND SEPTIC SYSTEMS,Tenant shall maintain all well,windmill,water and septic systems on
the Real Estate in good repair at Tenant's expense except damage caused by windstorm or weather.Tenant shall nol be responsIble
for replacement or installation of well,windmill,water and septic systems on the Real Estate,beyond ordinary malntenence expenses.
Landlord does not guarantee conlinuous or adequate supplles of the water for the premises.
16,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.
17.NO AGENCY.Tenant is not an agent of the Landlord.
18.TELEVISION AND RADIO.Tenant may install and temove,wilhout causing material injury to the premises,Tenant's
television reception antennas,microwave dishes,and radio reception and transmission antennas.
19.ACCOUNTING.The method used for dIviding and accounting for the harvested grain shall be the customary and usual
method used in the locale.
20.ATTORNEY FEES AND COURT COSTS.If either party files suit to enforce any of 111eterms of this Lease,the prevailing
party shall be entitled to-recover court coste and reasonable attorneys'fees,
21.CHANGE IN LEASE TERMS.The conduct of eilher 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.
22.CONSTRUCTION.Words and phrases herein,including the acknowledgement,are construed as in the singUlar or plural
and as Ihe appropriate gender,according to the context.
23.NOTICES,The notices contemplated in this Lease shall be made in wrliing 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 (or the notice of termination set forth in
Section 9,which shall be governed by the Code of Iowa.
24.ASSIGNMENT,Tenant shall not assign this Lease or sublet the Real Estate or any portion thereof wlthout prior writlen
authorization of Landlord.
25.CERTIFICATION.Tenant certifies that it Is not acfing,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 La any law,order,rule or regulation that is enforced or
administered by the Office of Foreign Assets Control;and it is net engaged in this transaction,directly or indirectly on behalf of.or
instigating or facilitation this transaction,directly or indireclly on behalf of,any such person,group,enlity or nation.Tenant hereby agrees
10 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.
26,ADDITIONAL PROVISIONS,
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TENANT:
DATED:--=$""~-=_=Z..c7~-__'=q§::l:-2.~_Pd~
Rod Collins ,
STATE OF_Il10f:W~A\-;r;-_
COUNTY OF DALLAS
This instrument was acknowledged before me on D:u.§1,D+:1.J JRodCollins
;;l.OO'i-,__,by _~.
I Difui~J'Jd)1\&h:
________________,Notary Public
STATE OF IOWA
COUNTY OF DALLAS
ThiSj'nsjj:.umenl wCl-~acknowledged before me on
by etrrey L.Kooistra
as City Administrator
of CIty of WaUkee,Iowa
If a corporation:Said person(s)acknowledged that the corporation
~--,-7.1-(_
_.t!4,-UiUd..fL..j,J..:....ut~ua,1.<W ,Notary Public
[ATIACH OTHER APPROPRIATE ACKNOWLEDGEMENr-T(:..S.:..)_HE_R-::E;J===:-=-====
~
.\'.REBECCAD.SCHUETIf~Commission Number 716496
••My Commission expires
ow'May 13,2011