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HomeMy WebLinkAbout2017-03-06-Resolutions 17-122_Farm Lease - LangeTHE CITY OF WAUKEE,IOWA RESOLUTION 17-122 APPROVING FARM LEASE WITH JOEL LANGE IN THE NAME AND BY THE A UTHORITY OF THE CITY OF kYA UKEE,IO 8'A WHEREAS,City Staff received offers to lease city owned property for farming purposes;AND, WHEREAS,the subject property is property acquired for development of the Copeland Recreation and Sports Complex which is not ready for development at this time and would likely overgrow if not farmed;AND, WHEREAS,the City Council believes that it is in the best interest of the City to lease the property to Joel Lange 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 lease with Joel Lange are contained in the Farm Lease,attached as Exhibit A. NOW THEREFORE BK IT RESOLVED 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. Passed by the City Council of the City of Waukee,Iowa,and approved this the 6'"day of March, 2017. W liam F.card,Mayor Attest: Rebecca D.Schuett,City Clerk ROLL CALL VOTE Anna Bergman R.Charles Bottenberg Brian Harrison Shelly Hughes Larry R.Lyon AYE X X X X NAY ABSENT ABSTAIN PARI%I LEASE -CASH OR CROP SHARES THIS LEASE ("Lease")is made between City of Waukee,Iowa ("Landlord"),whose arlrlress for the purpose ol this Lease is 230 W.Hickman Road,Waukee,IA 50263 and Joel Lange ("Tenattt"),whose address for the purpose of this Lcasc is /0 .5,/"I&Jefferson,Iowa. 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"): Southwest Quarter and the Northwest Quatter of the Southeast Quarter,Section 36,Toavnship 79 Neith,Range 27 West of the 5th P.M.,Dallas County,lowe., and containing 200 acres,morc or less,with possession by Tenant for a tenn of 200 year(s)to commence on April I,2017,and end on December 15,2017.Thc Tenant has had or been offered an opportunity to make an independent investigation as to the acres and boundaries of the premises.In thc event that possession cannot be delivered within tifternt (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"): «.Total annual cash rent of $60,000.00 payable,unless otherwise agneed,as follows:5 30,000.00 on May 1,2017,5 30,000.00 on October I,2017,anti All Rent is to be paid to Landlord at thc adrlress above or at such other place as Landlord may clirect in writing.Rent must be in Landlord's possession on or before the due date. Participation of this falau in any offered progrant by the U.S.Dcpattltlcnt of Apiculture or any state for crop prorluction control or soil conservation,the observance of the trams and conditions of this program,and the division of fatso program payntents,rcquircs Landlord's consent. Payments froltt palticipation in these programs shall be divided 0 %Landlord 100 %Tenant Governmental cost-sharing payments for pcrsnanent soil conservation structures shall be divided 100 %l,andlord 0 %Tenant.Crop disastet paylncnts shall be divided 0 %Iumdlorrl 100 % Tenant. 3.LAixIDLORD'S LIEN AND SLrCIJRITY INTRRC'S'f.As security for all sums clue or which avill become due from Tenant to Landlorcl,Tensest hereby grants to Landlord,in addition to any statutory liens,a security interest as provirled in the Iowa Uniform Commetvcial Code and a contractual lien in all crops produced on the premises and the proceeds and products thereof,all contract rights concerning such crops,proceecls aml/or products,all proceeds of insurance collected on account of destruction of such crops,all contract rights and V.S. government and/or state agricultural farnt pro rtnn payments in connection with the above described premises whether such contract rights be payable ill cash or ht kind,including the proceeds from such rights,anrl any and all other personal property kept or used on the real estate tlvat is not exempt li.om execution.Tenant sltall also sigtt any additional fonna required to validate the security interest in government program payments. Tenant shall not scil such crops unless Landlord &ngrccs otherwise.Tenant shall notify Landlord of Tenant's intention to scil crop at least three (3)business days prior to sale of the crop (with business days heing described as ivlonday through Friday,except any Iowa or federal holidays).Tenant shall pay the full rent for the crop year in vvhich thc 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 Laiidlortl's lien on the crop produced in that crop year on the premises.The p&utics agree that by the I.andlord releasing the lien as to tire crop in one year,the Lall&tlord in no way releases the lien or agnees 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 other&vise consents,Tenant v ill not sell thcso crops to a buyer who is not on the potential list of buyers unless Tenallt pays thc full rent duc for the crop year to the Landlord at or prior to thc date of sale.Landlord may give notice to the potential buyers of the existence of this security interest. Ltaidlord 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 L&andlord &ls Secured Party and describing the coll&&tel'al Irercitl specified.Telaant coltseilhs to tile financing st&stein&'ilt being filed hmnediately after execution of this Lease. (I')Commercial Fertilizer (2)Lime and Trace Minerals (3)Herbicides (4)Insecticides (5)Seed (6)Seed cleaning (7)Harvesting and/or Shelling Expense (8)Grain Drying Expense (&I)Grain Storage Expense (10)Other 4.INPUT COSTS AiND EXPENSES.Tenant shall prepare the Real Estate and pl&nit such crops in a timely fashion as may be directed by Telu&lllt.Tenant shall only be entitled to pasture or till those portions of the Real Estate designated by Landlord.All necessary machinery mid equipment,as well as labor,necessary to c&u iy out the terms of this lease shall bc furnished by and at the expense of thc Tenant.The following materials,in the amounts required by good husbandry,shall be acquired by Ten;uit and paid for by the parties as follows: %Landlord %Telu&lilt 0 100 0 100 0 100 0 100 0 100 0 100 0 100 0 100 0 100 0 100 Phosphate and potash on oats or beans shall be allocated iv'a%the first year.and n/a%the second year,and on all other crops allocated n/a%the first year and nia%the second year.Lime allcl tl'ace lllllrel ala shall be allocated over four ye&us.If tlus Lease is not renewed,&ind I'enant docs not therefore receive the full allocated benefits,Tenant shall bc reimbursed by I.andlord to the extent Tenant has not received the bcnclits.Tenant ayccs 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 fanu the Real Estate in a nl'anllcr consistcnt with good husbandry,seek to obtain the best crop production tll&at the soil and crop season will permit,properly care for all growing crops in a nlanncr consistent with good husbandry,and hnl'vest all crops on a timely basis.In the event Tenant fails to do so,Landlord res&aves the right, personally or by designated agents,to enter upon thc Real Estate mt(1 properly care for and harvest all growing crops,cllarging the cost of the care and harvest to the Tenant,as p&BIS of the Renk Tenant shall timely control all weeds,including noxious weeds,weeds in thc fence rows, nlong driveways and around buildings throughout the premises.Tenant shall comply with all terms of lhe conservation plan nnd any other required environmental plans for thc leased premises.Tenant shall do what is reasonably necessary to control soil caosion including,but not limited to,the maintenance of existing vvatercourses,waterways,ditches,drainage areas,terraces and tile clrains&and nbstain fi om any practice lvhich will cause d&nnage to the Real Estate. Upon recluest fi om thc Lamllord,Tenant shall by August 15 of each lease year provide to the Landlord a written listing showing all crops planted&including the a(Sea of each crop plantecl, fertilizers,herbicides and insecticicles applied showing the place of application,the name encl address of the applicator,thc 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 fi om the farming operation suitable to be used.Tenant shall not rcmove from the Real Estate,nor burn,any straw,stalks,stubble,or similal'plant materials,all of which are recognized as the property of Landlorcl.Tenant may usc these materials,hovvever,upon the Real Estate for the farming operations.Tenant shall protect all trees,vines and shrtibbery upon the Real Estate fiom injury by Tenant's cropping operation or 1 ivestoclc. Tenant shall maintain accurate yield records for the real cstatc,an(I upon I'cqucst&(hiring or nfter lease ternl,shall disclose to Landlord«all yielcl base inform&stion required for p&u tlclpBtlon ln govclslnlcnt pl'ogl'anl 6.DELIVERY OF GRAIN.If this lease is a crop share lease,Tenant,without cost to Landlord,shall deliver Lancllord's grain pursuant to request,at reasonable times,to the elevator at n/a or elselvhere at no further distant point. 7.LANDLORD'S STORAGE SPACE.If this lcasc is a crop share lease,Landlord reserves n!B%of all crib and &nanary space for storage ol'the rent ah&ale crops. 8.ENVIRONIVIENTAL. a.Landlord,To the best of Landlord's knowledge to date: i)Neither Landlord nor,Landlol'd s fofnlci ol plcscil't tcnanLs,Bl'c subject to Bny investigation concerning the premises by &uiy govemmcntal authority under any applicable fecleral,state,or local codes.rules,and regulations pertaining to nir and watcl quillity,the handling,tr&ulsportntion&storage,treatment.usage,or disposal of toxic or hazardous substances&Bif clltissions,other environmental matters,Bnd nil zoning ancl other land usc nlatters. ii)Any handling,transportation,storage,treatment,or usc of toxic or hazardous siibstallces that lies occurred on the premises has been in compliance with all applicable fetleral,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 fice of toxic or hazardous substtnices except for chemicals (including without limitation fcttilizcr,hcrbicides,insecticides)applied in conformance with good farming methods,applicable i~les and regulations and the label directions of each chemical. Landlord shall hold Tenant harmless against liability for removing solid ivastc disposal sites existing at the execution of this Lease,with the exception that Tenmit 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. Landlorcl shall assume liability and shall indemnify slid llold Tenall't harirt less against al'ly liability or expense arising from any condition which existed,whether known or unknown,at the time of'execution of thc lease which is not a result of actions of the Tenant or vvhich 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 v:clls, underground storage tanks,hazardous waste sites,and solid waste disposal sites.Disclosure may be provided by a properly completed groundwater hazard statement to be supplcmcnted if changes occur. b.Tenant.Tenant shall comply with all applicable environmental laws concerning application,storage and handling of chemicals (including,without limitation,hcrbicides and insecticides)and fertilizers.Tenant shall apply any chemicals usi;d for weed or insect control at levels not to exceed the illalllltacturer's recommendation for the soil types involved.Fanu chemicals may not be stored on the premises for more than one year. Farm chemicals for use on other propcrties may not be stored on this property.Chemicals stored on the premises shall be stored in clearly Ilitlfked,tightly closed containras.No chemicals or chemical containers ivill be disposed of on thc premises.Application of chemicals for agricultural purposes per mamilacturer'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 saf'ety c)reck valves for injection ol any chemicals and@&r fertiiizers into an irtigation system (injection valve only,not main we)I check valve).Tenant shall properly post all fields (when posting is required)whcncvcr chemicals are applied by ground or air.Tenant shall haul and spread all manure on appropriat fields at times &llld in quantities consistent wiih environnientril pl'otcctloli requirements.Tenant shall not dispose of waste oil,tires,batterics,paint.,other chemicals or containers anyivhere on the premises.Solid ivaste 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 tlead animals is permitted as stated in the previous two scntcnces,the disposal or burial shall be in compliance with all applicable environniental laws.'fenant shall not usc waste oil iis ii iricalis to supplcss dlust oti &any lxiiiils on ol ncai'tile pi'clulscs.No underground storage tanks,except human waste septic systetns th&it meet current codes, nilcs,and regulations,shall be maintained on thc premises. Tenant shall immediately notify Landlord of &uiy 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 fi'om Telu&lilt s use of the premises.Tenant shall assume defense of all claims,except claims resulting from Liusdlorrl's negligence,in which case each piety shall be responsible for that patty's defense of any claim.After termination,Tenant shall remain liable for violations which occurred during the tenn of this Lcasc. 9.TERMlixIATION OF LEASE.This Lease shall automatically renew upon expiration I'rom year-to-year,upon the same terms and conditions unless either party gives duc anil timely written notice to the other of an election not to renew this Lease.If renewed,the tenancy sliall terminate on March I ol'the year following,provided that the tenancy shall not continue because of an &absence of notice in the event there is a default in the perfume&ance of this Lease.All notices of termination of this Lease shall be as provided by law. 10.POSSESSION AND CONDITION AT EiND OF TERivI.At the termination of this Lease,Tenant vvilI relinquish possession of the Real Estate to the L&uidlord.I I"I'enant fails to do so Tenant.agrees to pay Landlord S 2SO per day,as liquidated damages until possession is dclivcrcd to Landlord.At the time of delivery of thc Real Estate to Landlord,Ten&nit shall assure that the Real Estate is in good order and condition,and substantially tile s&lllie as it v:as 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 INSPL&CTIOiN.Landlord may enter upon thc Real Estate or authorize any other party to enter upon the Real Estate at any time for any purpose during the tenn of this Lease.By exercising this right of entry,Landlord shall reimburse Tenant for damages incurred,including Crop Damages as speci lied in the Additional Provisions of this Lease. 12.VIOLATION OF TERMS OF LEASE.If Tenant or Landlord violates the terms of this Lcasc,the other may pursue the legal and equitable remedies to which each is entitled. Ten&ant's failure to pay any Rent ivhen duc sliall cause all unpaid Rent to become immediately clue and payable,without any notice to or clem&aid upon Tenant. 13.REPAIRS.Tenant shall maintain the fences on the leased premises in good and properrepair.Landlord shall furnish necessary materials for repairs that Lalldlord deems necessary xvithin a reasonable thuc after being notified of the need for repairs.Ten&ant shall h&uil thc materials to the repair site without charge to Landlord. 14.NET IMPROVEMEiNTS.All buildings,fences and improvements of every kind '1!icl 11atiile that may be erected or established upon the Real Estate during the tenn of the Lease by the Tenant sltall constitute additional rent &uicl shall inure to the Real Estate,becoming thc property of Landlord unless the Landlorrl has agreed in writing prior to the erection tltat thc Tenmit may remove the improvement at the cnd ol'the lease. 15.WELL,WINDMILL,WATER AND SEPTIC SYSTEtyIS.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 not be responsible for replacement or installation of well,windmill,water and septic systems on thc Real Estate,beyond ordinary maintenance expenses.Landlord docs not guarantee continuous or adequate supplies of water for the premises. l6.EXPENSES INCVRRFD WITHOUT COiilSENT OF LANDLORD.No expense shall be incurred for or on account of the Lancllord without first obtaimng Lallcllolil s wlittcn ailthorization.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 thc Landlord. 18.TELL'VISION AND RADIO.Tenant may install and remove,without causing material injuiy 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 hie vested grain shall be the customary and usual method used in the locale. 20.ATTORNEY I'EES 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. 21.CHANGF,IN LEASE TERMS.The conduct of either party,by act or omission, shall not be constnied as a material alteration of this Lease until such provision is reduced to writing and executed by both partics as addendum to this Lease. 22.CONSTRUCTION.Words and phrases herein,incluiling the acloiotvledgil1eltt,ai'c construed as in the singular or plural and as the appropriate gender,according to the context. 23.NOTICES.The notices contemplated in this I.case shall be mailc in writmg and shall either bc delivered in person,or be mailed in the V.S,mail,certifiedl mail to the recipient's last knotvn mailing address,except for thc notice ol termination set forth in Section 9,which shall be govcrnecl by the Code of loxva, 24.ASSIGNMENT.Tenant sluill riot assign this Lease or sublet the Real Estate or any portion thin eof without prior xvri ttcn iuithori sation ot'Landlord. 2S.CERTIFICATION,Tenant certifies thai it is not acting,directly or indirectly,for or on bchal 1'of any person,grroup,entity or nation natucd by any Exccutivc Order or the United States Treasury Department as a terrorist,"Specially Designated National and Blocked Person'* 01 ai'ly other banned or blocl'ed person,entity,nation or ttransaction pursuiint to any law,order, rulc or regulation that is enforced or acbninistcred 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 dcfenil,indemnify and hold harmless Landlord fiom 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 certitication. 26.ADDITIONAL PROVISIONS. CROP DAMAGES:In the event thc all or part of the Tenant's growing crop is damaged due to the actions of I andlord or Lancllord sells or otherwise transfers the Leased Premises during the term of this Lease and Closing occurs after the crops on the Leased Premises have been plruitcd, but before they arc harvested,and due solely to Closing,Tenant cannot harvest any part or all of the crops on the Leased Premises,Landlord shall reimburse Tenant for the lost crops.In that event,Landlord agrees to pay to Tenant an amount clctennined as follovvs: (i)the estimated measurement of the number of acres of crops damaged/destroyed will be determined (iuid such number of acres xvill be detctxnined for each crop so datnagcd/destroyed,if more than one crop is impacted)[Acres] (ii)the prn acre yield for the type of crop planted and such amount will be the average annual yield over the previous tliree (3)years for such crop in the county in which the Leased Premises is located as published by the Iowa Office of USDA National Agricultural Statistics Service (or if'such report is no longer published,then an alternative comparable published source shall be used)less the actual per acre yiekl in the impacted area [Yield] (iii)the highest daily cash crop price for such crop for the region where the Leased Premises is located during the period fiom October I through December 31 of the calendar year during which the crop damage occurred as published in the Interior Iowa Daily Grain Price Report published by the Ioiva Department of Agriculture and Land Stewardship (or if such report is no longer published,then an alternative comparable published source shall be userl)will bc detemiined [Fair iMarket Price];and (iv)after the above items in (i),(ii)and (iii)are determinecl or estiniateil for each type of crop, the total crop damage payment wilt be determined for such acres of each crop iuid it will equal the following:[Acres]x [Yield]x [Fair Market Price]. Landlord agrccs to prepare and provide to Tenant a reasonable determination of the measurement ol the area impacted [Acreage],anil its determination of thc price [Fair Market Price]and reduced yield [Reduced Yield](as dletcrmined above)roid the resulting total payment,which such information will be provided to Tenant within thirty (30)davs at)cr thc crop is d'unaged or destroyed.Within thirty (30)ilays of Tenant's agreement with respect to such calculation illlcl alnoullt,the payment I'or such damage or destruction of the crop sltall be paid to Tenant by Lanillord. lt is furthcr agreed tlult,in no evrait shall Lmidlord bc responsible to pay Tenant any losses of income,profits or other losses arising out of the inability to grow crops or otherwise use the Lease!I Premises as a result of the sale anil subsequent Closing of the sale of the Leased Premises. If L'rlildlord and Tenant cannot agree on the runount of crop rlamage,thc Parties agrcc to have the area and extent of damages assessed by &in impartial party mutually &agt cod upon by the Parties (such as a local crop insurance adjuster). DATED:March 15,2017 Joel Lange,TENANT 1 yof au ee,Iowa,LAND D STATE OF IOWA~ COUNTY OF z &Ajax'-~'—L''l y. This record was acknowledged before meondr"xy(PiP~&i &A -l.y by Joel Lan&ye. .;1&.,ANN tttt.CUNNINGHAiitt"Commission Number 1771S7 My Commission Expires December 1,2018 ized()-..(7 dy'pArx'Vr,'((+Ãd'4pp Si&ynature of Notary Public STATE OF IOWA COUNTY OF DALLAS Tt'"d *.i»i dr dd &"»~4I i!!did ~II dy~tllhif&iii ~4/. Mayor of the City of Waukee,lowe. us&i&d,BEBECCA C,SCHUETT ",Commission Number 71c&496 My Commission Expires &&&&May 1 h 7017 USigplaturcofotary Public (ATTACH OTHER APPROPRIATE ACI&NOWLEDGivlENT(S)HERE)