HomeMy WebLinkAbout2018-04-16-Resolutions 18-159_Farm Lease - Phillips-HamiltonTHE CITY OF WAUKEE,IOWA
RESOLUTION 18-159
APPROVING FARM LEASE WITH PHILLIPS-HAMILTON,INC.
IN THE NAME AND BY THE A UTHORITY OF THE CITY OF 8'A UKEE,IOIFA
WHEREAS,City Staff received an offer to lease city-owned property for farming purposes;
AND)
WHEREAS,the subject property is property acquired for development of the Waukee Civic
Campus 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 Phillips-Hamilton,Inc.,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 Phillips-Hamilton,Inc.,are contained in the Farm
Lease,attached as Exhibit A.
NOW THEREFORE BE 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 16'"day of April,
2018.
illiam F Peard,Mayor
Attest:
Rebecca D.Schuett,City Clerk
RESULTS OF VOTE:
Anna Bergman
R.Charles Bottenberg
Courtney Clarke
Shelly Hughes
Larry R,Lyon
AYE
X
X
X
X
NAY ABSENT ABSTAIN
FARM LEASE
FARM 4178
This lease is made this l Ip~day of April,2018.by anil benicen City of Ylaukec.Fart&ol'the First part,also hereinafier referred to as
Oiiner.ivhich sinai l in all cases include the Oivnei s design aicd agent anil Phillips I I am i it tm.Inc.,Pariy of the Second Pm 1,lier tz Farni
ivianagemenu Inc.,Agent,also hereinafter rofi:rred to as Operator.
SECTION 1.DISCLOSURE OF AGENCY
lt is clearly understood and agreed by the parties hereto ihai Ilertz Funn Managemenk Inc.represents the Operaior onl&in this
transaction,ilcrtz Farm Management,Inc,is not and will not be the Agent of the Oivner.All information obtained b&Hertz Farm
Nlanagenieni.Inc.from the Oivner will be available to thc Opnator.'I'he Oivner should caret'uliy read all provisioni of this agreement
to ensuiv.that ihey adcquateli i.xpress Owner's understanding of the trmisaction.If legal advice is desired,Ov:ner should consult an
attorneis
The undersigned Owner acknoivledges reading the above Disclosure and thc undersi ned Owner understands and agrees to its terms.
CITY OF AU E
0 i@ dj0i5
Date
Owliel'Date
SFCTION II.DESCRIPTIOiN OI'FARM
The Oivncr,in consideration of thc terms specilied herein,Icascs to thc Operator t'or agricultural purposes the following described
propert&.
Ooi ernment l,ot 2 and Croivrnmcnt Lot 3
located in Bonne Toiinship,I)alias County,Iowa,containing 89.75 tillable acres.more or less,including and subject to ail eascmcnts
ntiw existing or which the Oivner may orant in the future.15asement damage pa&ments I'or crop loss are subject to ihc ri hts of the
Operator in accordance with the crop division tcrnts of this lease.In case any ponion oi.'the above described real estate is required for
public usc and is taken by condemnation or othemvise.the proceeds shall go to the Ou ner.If groiving crops are damaged,thc Operator's
share of the value of'same shall go to thc Operator.
SECTION)II.LENGTH OF LFASE
I he term of this lease shall be for ihe period beginnin Mtuch I.2018,to Februarv 28.2019.
SECTION IV.LAND USE
'!'hc described property shall be used tor agricultural purposes:using land use plan.cropping pro ram.and conservation practices as
spvcilied by Oivncr.Clmnges therefrom shall he made onli w ith the conscm of the Owner.Cultivate and othcru isc operate the property
in a reasonable manner and in accordance iiith generally recognized and approved agricultural practices.WVhcn so directed by the
Oimcr;farm on the contour.use minimum lillage,rcsiduc management,oi no-till agricultural practices.Operator agrees to appi&
mininwnn fertilizer amounts,expressed in pounds per awe.to maintain or improve iong term soil Ibrti lit&.according to the folloiving:
Com
Soibeans
Alfalfa
Oats
xV he at
P Os
60
30
65
35
-.10
RtO
60
50
250
100
&I
Opcraior it ill rccciie no ret'und for fertilizer carryover at thc cnd of this lease.
Operator shall comply full&itith ihc Conservation Plan on lilc ivith thc USDA Natural Rcsourccs Conservation Service.The tenn shall
bc conmurcd ivhcrcvcr practical.Operator agrees not io plant soybeans following soybeans on the Farm,not to moldboard pion,and io
leave crop residue on thc suri'ace I'or conscri ation puqxises.Nn more than I -174&1 diy or I quart liquid Atraxinc per acre per &ear may
bc applied.
The Operator shall not nisi main soil pl I at an avcragc of 5 5 to 7 5 fm each Iield by applying lime as needed upon convent of thc Oivner.
All quarry limestmie spread and paid for by Operator will be considered depleted 25%each year.Any undeplcted limestone for which
Operator has paid i&ill be rclundcd by Oivner at thr:le&mination ol &his lease.&Vithin 45 days aller any limesmnc is applied,Operator
shall furnish to Oiiner copies of all scale tickets
All liquid and pell-lime will be considered depleted in the year it is applied,There &vill be &10 I'i'filnd on these types oflime.
A uvitmn cropping pro &ani v:ill be provided to the Opmator at tlie beginning of ea&h year ivhich will bc folioivcd by thc Operator.
Changes theret'rom shall bc made only with ihe consent of the Owner.
SECTION V.DIVISION OF CASH RENT
The Operutor agrees io pai the Owner a cash rental payablc to City oi'tgaukee as Ibllnwi:
Item
IF&.75 acres 'ri 5235!acre .Total $21,901.25
Due Date
Slarch I
In the event rent.is not pai&i ivhen due.it shall accrue in&crest at thc r;nc ol'15%v per annum on thc unpaid balance.
Govmnmcnt program (IrSAI Ai'erage Crop Revenue payments &till bc divided bet&veen the Owner and Operator equal to thc division
of die crop.Ail other pai ments ti om the Commodit&Credit Corporation.including dii crsion and cost share.will he 100%pa&able to
the Owner.
aConservation Stewardship prograni.'I ho Agricultural Act of 2014 includes a Conservation Steivardship program ivh&ueby thc
Oiincr an&i!or the Operator may he eligible to receive a paymen&for conservauon practices.&ghether to panicipate in this program
ivill be at the option ol'the Oivner.(Payments under this pnigram &vill be shared %by the Owner and %by the Operator )('I'o
participate in this program ivill require a mutual agreement beuieen Ownm and Operator and a mutual agreement on hots the
pa&nicnts ivill be shared.)Operator shall noi receive any payments under the Conservauon Stewardship Program beyond the term ol'
this lease or an&'extension thereo&'.Opetator agrees to assign his interes&in &hii prog&am and all future pa&menis to ihe Owner ai thc
conclusion of'this lease or extension of this lease thcrcof.
Op(.i.ator shall can&I?ei ernie Prorection on corn nnd s&iybeans sufficient io guarantcc a minimum of 75%of the yield and 100%of the
price.respcctiveli,on thc bc&pin described property and pa&said premiums.
SECTION Vl.OPERATOR DUTIES AND CONDITIONS
Thc Operatm shall.
I.Operate thc tbrm m an ifticicnt and ivorkmanlikc manner and possess at bis expense the esscniial Ihrm nuichiner&needed to opcratc
ihe I'ann.
2.Control weeds in lields,I'cnccroivs.road ditches,building lots,and all areas ofthc far&a by moiving or sprat ing ivith 2,4-O.
3.Protcci all desirable vc etation.such as grasi,field borders,grass ivatmiiayi.shrubs.and trees:also not to ploiv orothernise disturb
permanent vegetation without the consent of'&he Ow net.
4,I?ecp the premisci in as good conclition as reasnnablc usc will permit
5.Perlotm labor necessarv in making minorrepairs and improiements.
fx Perform lalior nccessar&&o repair I'cnces,darnagcd b&Operator.
7.Rimove no forage or crop residues,including straiv and stalks.roivn on the farm.nor sell or burn ii cxccpt by uiinen permission
ot the Oivnet.
8.&Vaik or spray all soi bean liclds for control of pnitcmergence needs.
&A Cut legume ha¬ latei than September lb.
10.I urnish labor and supe&x isc the dr&'ing and storage of all mops grot&a nn &he &arm.
I l.A~sist ii i&1&no&ion control m&d mainienancc and cs&ablishmm&t o&'grass watemvays.
12.Incur nn cvpcnsc l&&r or &m account nl'Owner wi&houi first oh&sining &hc Oivncr'i consent.
13.Pennii no liiestock to &rample soli iields or alloiv no hogs to root in lields or loti.
14.Invcstigatc broken or inoperative tile and report same &o the Owner.Provide labor Ibr minor repairs to broken tile and kccp intakes
and outlets open.
16.Con&pl&''lv&&h all it&sin'ance si&l&&i'&'c'qm&cn&cuts o»''cgulat&ons to help safeguard ihe Oiiner's insurance covers c.
16.In the even&.of damage to crops,buildings,or improvements bi any naiural or man-made disaster,lhc Operator shall notify the
Owner bi telephone or in iiriting within 24 hours.
17.Thc Operator shall carry minimun&insurance limits anil covm ages as folio&vs:(aj Worker'4 Compensation insurance and L'n&ployer's
Liabiliti as required by State and Federal laiit (b)Farmeis Comprchensiic Gcncral Liability and/or umbrella liability cnverage
with respect to tlm Operator's usc and occupancy of the premises,products.anil completed operations iiith bodily injury and
prop&:&ty.damage liability limits of not less than $1.000,000 pcr occu&rance.31.000,000 annual aggv&agate;(c)Automobile Bodi ly
injury and Propcrti l)amago Liability on all oivned,non-oivned.hired.or leased automotiiv.a~quip&nant in conjunction with
operations,in a&nounts not less than 8300.000 per occuncnce.As evidence to the above.thc Operator shall submit to the Oivner
ce&xif&cates of insurancr on an annual basis or iiithin 30 days of &hc date ol'this lease ag cement.
18.Govern&nen&Programs.At thc option of ihc Oivner.the Operator agrees to pmticipa&c in an&offcrcd program of the tlnited States
Dopa»ment uf Ag&icul&u&e I'or crop production control.soil conservation or range improvement.and observe the terms and
conditions ol'said program.The Operator agrccs to pivscrvc cropland acreage bases allowed under USDA Farm Progiam provisions
by planting.certifying,and maintaining the alloiiable piogram crops and'or set-asidk acres.'I he Operator shall not be alloived to
tn&mbinc this parce!with another farm unit I(or government program purposes iiithout ivrittcn permission from the Owner.Operator
a rces to fully comply ivith and implement the Nauiral Resouiccs Consmvation Seri ice Conservation Plan ihat is ol'record on this
farm.In thc event the Operator fails to comply'ivith or implcmcnt tbc Conservation Plan,or causes &he FSA acreage bases to
decrease,he shall pa&the Oivner damages to be determined and &he lease shall bc null and void immediateli.
19.Global I osi&ioning.All data oht»incd through global positioning on the I'arm is jointly shared by Oivncr and Operator.Costs ol'
soil tea&a &&ill be shared 0%by the Oivncr and 100%by the Operator.Cnpies ol'all soil ieit reports shall be provided to the O&vner.
20.Thc Operator agrees &o furnish receipts for all expenses and sales pertaining u&&hc farm business.'I'hc Owi&er shall reconcile the
dii ision of crops,account for inventories lrom time &o time.make periodic income or expense settlements.and receive from the
Operator inf'mmation rcquiivd to make an annual accounting of all Owner-Operator business transactions,'fhe me&hnd used for
dii iding the accounung fi&r the harvester'd &am shall bc a cust»mary method and approved by &he Ow non
21.Compll ivith local,state.and Icderal laivs and &egulations pe&taining to g&oundiva&er contamination and haaardous waste storage or
disposal.1&olloii'label dii ections in the handling and application ol'all chemicals used on thc prem&scs.
22.The Operaior shall furnish to thc Oivncr a crop plat of aced,chemicals,and fcrtihzer applied.Chemical informat&on &o include all
requirements I'or reporting restricted use pei&icides.
23.Operator io pay all elec&ocul hills.
24.Operator to pay'for all repairs to buildings and vquipmcn&.
25.Conirol rats and other rodcms u&and mound buildings by l&aiiing.
26.Be responsible I'or testing each smoke dei&c&or alarm provided in &he dwelling on a rc ular basis,replacing the battery ifncccssary.
and noti&1 in Ownm if smoke dctcctor is inoperable.
SECTION &'ll.ADDITIONAL AGREEMENTS
Mineral Rights.The Owner resc&ves all right to ani minerals un or underlying the Iiarm.
tyater Supply.No guarantee.either expressed or implied,is made by Owner for a continuous and adequate timer suppli.
Owner's Lien.Operator grants to Ownni in addition to a statutory Landlor&fs l,icn.a security intcrcst as provided in ihe loiva
Unit'orm Commerc&al Code and a contractual lien on all Operator's exempt and nonexempt personal proper&1 kept or used on
the described I'arm &ncludmg.hut not limi&a&i to,all crops growing or groivn on thc farm.and &he procccds and products thereol:
all contraci ri hts concerning such crops,proceeds and&or products.all p&&weeds ol insurance collected on account of destruction
el'such c&opi,all contract rights and L.S.goi ernmcn&and&or stat&:agricultural!'arm program payments in connection ivith &he
aboi c dcscribcd prmnises ivhether such con&raci nghts bc pai able in cash or in kind.includmg thc procccds from such rights.
as iecuriiy I'or all sim&s duc or winch iiill become due I'rom Opma&o&to Owner.At Oivner's request,Operator shall proi ide
Oivner ivi&h a lis&ol'potential bui era t'or the crops gro&vn on &hc I'ann and shall sign Iinancing statements preps&cd by Oivner
&o peril:ct Owner's liens and securitv interests
Irollow ing is a list ui potential buyers ot !hc products grown on this 01rm.Operator ngrccs to deli'I el and scil such products Io
no bu&crs other tlvan those listed.Otvner shall dclivcr Notice uf Secutit&fnterest ut 01ose and unl&those bu&CI s listed.Operator
acknovvlcd cs that it shall be unlawf'ul to sell such products to an&buyer not listed Ivithout first obtainin the Ivriucn consent
of the Owner.
I.ileartland Coop
2.
3.
Yielding Possession.'I'he Operator agrees that,on termination of this lease,im will &ield possession to thc Otvner without
I'urther demand or notice.Premises shall be in as good order and condition as Ivhcn same Ivcrc cntcrcd b&thc Operator.Loss
b&'fire,tornado,forces be&ond Operntor's control and ordinary vvcar and tear are excepted.I I'thc Operator nrongf'ully
withholds possession of thc premises after the date of termination,hc shall pay to thc Otvner the sum of F200.00 for each day
he remains in possession thereafter as liquidated dmnagcs.
12emoval of Portable Buildings.'I hc Operator shall have Ilm right to rcmove limn thc I'arm anv portable buildings which hc
bas placed upon the farm at his otvn expense.Such moving must be done at termination of'the lease,unless additional time Is
granted in writing b&Ovvner.Thc Owner shall in no way be responsible lbr propmtv owned by thc Opmator.If'such property
is no«emovcd.it shall bc considered abandoned and tbc Operator shall claim no futther interest in it.cxccpt by writren
agreemcnt between Owner and Operator.
rk Release of Recovery Rights.Iiach purty hereby releases thc other f lorn claims Ibr recover&tor any loss ur damage to any
ptopert,ovvncd b1 either part&which is insured under valid and collcctibte insurance policies to the extent oi'any recover&
collectible under such insurance.It is turther agreed that waiver shall apply only Ivhen permitted by the applicable policy of
insurance
7.Environtnental Provisions.Operator Ivill operate the Ikon in strict coni'ormity with the provisions ol'the applicable
cnvh'onnIcntal latvs and regulations and Ivill apply thc appropriate soil and water comservation practices.Ail hazardous,toxic
materials or agtirultural chemicals vviil bc transported.stored,handled,applied and properly disposed of as rcqutred by latv,
including the acquisition of an&required pesticide applicators license,and the maintenance of'al!pesticide application records
as rcquitcd by state or I'cdcral lavv,including the vuorkcrs I'rotcction Standard.Operator still notify the Otvner immediately of
any condttions on the farm that ntay not bc in cnmpliance Ivith applicable laws or regulations.'I'he Operator has a sound
vvorking knowledge of the soil and water conservation practices to be used on thc property in thc performance of this
Agrccment.The Operator has a sound working knotvicdgc ol'thc fbdcral,state,and local environmental Imvs and regulations
relevant to the performance of this Agreement.The Operator vvill,upon request of thc Owner's Agent.complete and return an
environmental questionnaire.Thc Operator Ivill indemnify.dcfcnd and hold harmless.the Ovvnm and Owner's Agent.against
any loss oi'damages arising by reason of the Operator's failure to comply with the environmental and m&nservation compliance
prttvisions of'this Agreement.The Operator agtrees that the indemnit1cation agreements contained herein vvill survive the
termination or cancellation of the agreement.
g.Owner reserves all hunting,trapping and fishing ri hts.
SECTION VIll.RICI&T OF ENTRY
1'he Owner Icsmx as the right to entet the premtses at any reasonable time to inspect the propert&,to vvork and make nnprovemems as
he shall deem ncccssai'1'L'pon notice of'lease termination.the Operator agrees to permit the Owner or his lessee or agent to enter the
prmniscs to do customary tillage and opetations mt an&land liom which the currem nrain crops have been harvested and on anv hay
ground after November I.
SFCriON i&L TRANS1'PROF IN1'FREST
The Operator agrees not to asstgn or sublease an&part of the premises Ivithout Ivriuen consent of'Ihe Ov ner.'I'hc lcasc shall be binding
upon thc heirs,assignees,or successors in interest of the respective parties hcrcto.
SECTION &L VIOLATION OF TERIYIS OF LEASE
I I'the Operator I in fates the terms of this lease,thc Owner shall have thc right Io pursue the legal and equitable remedies to Ivhich ent Ill eIL
()perator's failure to pa&any rent when duc shall cmtsc unpmd tent Io bccornc immediatel&clue and pa&able.without an¬ice to or
demand upon Operator.
SECTION XI.LIMIT OF LIABILITY
Thc Ovvnm makes no guaramee of'the farm'1 productivity and assumes no liabiiitv for an&condition.visible or not,Ivhich may afftmt
the rowing crops,'fhe Operator agrees to indemnif&,defend.and hokl the Owner harmless against nn&*loss or damage arisin bt
reason of'the Operator's failure to cornpl&Ivith the mtvironrnentai and conservation compliance provisions of the lease.The Operator
agrees to accept thc dcscribcd property as is and shall not hold Ihc Owner responsible for ant condition,I isible or not,of the described
f11'OfICIIIS
SECTION XII.ATTORNEY FEES AIND COURT COSTS
If cithcr pnrty!iles suit to enforce an&of Ihe tenms ol this I.ease.Ihe pret ailing party slut ll be entitled to recover coun costs and Ivasonabie
auot nets'fees.
SECTION XHI.INBFVINIFICATIO i
Thc Operator shall indemnif&.dcfcnd.and hokl Ivarniicss the Oivner from ali costs.losses.liabilities,claims.penaities,or expenses
(inciuding reasonahie attornr&'s fees).imposed upon nr incurred by or asset ted against Owner by reason of:(a)any failure on part of
Operator to perform or compi)ivith an&of the terms of'the I ease;(b)an&enforcement ur rcmediai actions tai en b&Owner in the cveni
of a failure to perform or compi&with thc icrms ol'this icmc;or (c)any litigation.negotiation,or transaction in which Oiiner becomes
invoiied or concerned(ivithout Oivncr's fhult)respc"ting the lease.thc leased Nimiscs.or the Use iif ticcllpaltc)thereofby the Opmatnr.
SFCTION XIV.OTHER PROVISIONS
lt is understood anil agreed that this is not a partnership agreement.Ncithcr pariy shall mortgage or otherwise encumber joi ntiy oiined
or co-oivncd piopcrty,nor pledge the crcdii of the other pmty hereto for any purpose ivhatsoevcr ivithout the cnnsent of the other party.
Other provisions to ibis lease agrccmmit arc listed bcioiv:
I.Subject io the Owner pertecting a tirst security interest in thc 2018 crop and ail future crops.
Subject to sale by Owner.In the cvmit property is sold.sf i cash rent received mill be refunded ivithout inwxest.Upon noiicc oi'
lease cancellation.the Operator aarees to promptly refund an&and all USDA Farm Program payments received and transfer ali
program bcnetits to the succeeding Oivncr and!or Operator.
3.'I'his lease does not include ani land enrolled in the Conservation Resene Program.Oirner will reccii e 100%of CRI'payments.
Operator agrees to peri'orm necessary field opc.aiions foi CRP lmid on a custom basis.Payment for each operation ivili be
deteimined b&the average custom rate as shoivn in tho most rcccnt Iuiva State University custnm survev.
h is further understood that Ixith parties have read the ierms and provisions of this lease agrcemcnt and have agreed to abide by the
terms and provisions hcrcin.
SEVIvRABILITY:If an&proi ision or provisions of this Agreement shall be hcid to be invalid,illegal.unen furceable or in cnnf1ict ivith
thc laiv ot am jurisdiction,the validity,legalit&and entbrceabiiiti of the remaining proiisions shail not in any way be affected or
impaired thereby.
IN SVITiNESS WHEREOF,ive affix our signaturesthis j(ryt day ofAprii.18.
PI I ILI fPS H 4'vllLTON INC
I IERTZ I'ARid FHA.'AGE%1EN'f.Itic,
Agent operator
B&
415 S.I I 4 St.,p.O.Box 500 Pfv0 .4
Nevada,IA 50201-0500
Office'fcicphone:515-382-1500
C
'VAUlsEE
Hg-4 ()54&(PC 5
/~i'~I'ax ID8
iciephonc
47-1152140
Social Securiiy "',!Federal ID 8
CIS!LEASE!178PI IILLIPS IIAisliLTON-CITY OI WAUKEE