HomeMy WebLinkAbout2017-03-06-J01H Lange Farmland Rent AGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: March 6, 2017
AGENDA ITEM: Consideration of approval of a resolution approving farm lease [Joel Lange]
FORMAT: Consent Agenda
SYNOPSIS INCLUDING PRO & CON: On Wednesday, February 15, 2017 at 10:00 a.m. nine bids
were turned in for the 200 acre Copeland Farmland cash rent. The highest bid
was $300.00 per acre submitted by Joel Lange from Lange Farms out of
Jefferson, Iowa. The City Attorney has reviewed the contract and finds it to
be satisfactory.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: $60,000.00
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT: Staff would recommend approval of the contract with Lange
Farms for the 200 Acre Farmland Cash Rent.
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Proposed Resolution
II. Farm Lease
III. Quote Tabulation
PREPARED BY: Matt Jermier
REVIEWED BY:
PUBLIC NOTICE INFORMATION –
NAME OF PUBLICATION:
DATE OF PUBLICATION:
THE CITY OF WAUKEE, IOWA
RESOLUTION 17-
APPROVING FARM LEASE WITH JOEL LANGE
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA
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 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 6th day of March,
2017.
____________________________
William F. Peard, Mayor
Attest:
___________________________________
Rebecca D. Schuett, City Clerk
ROLL CALL VOTE AYE NAY ABSENT ABSTAIN
Anna Bergman
R. Charles Bottenberg
Brian Harrison
Shelly Hughes
Larry R. Lyon
FARM LEASE - CASH OR CROP SHARES
Recorder’s Cover Sheet
Preparer Information: (name, address and phone number)
Brick Gentry, P.C., 6701 Westown Parkway, Suite 100, West Des Moines, IA 50266, Phone:
(515) 274-1450
Taxpayer Information: (name and complete address)
City of Waukee, 230 W. Hickman Road, Waukee, IA 50263
Return Document To: (name and complete address)
Brick Gentry, P.C., 6701 Westown Parkway, Suite 100, West Des Moines, IA 50266
Grantors:
City of Waukee, Iowa
Grantees:
Joel Lange
Legal Description: See Page 2
Document or instrument number of previously recorded documents:
FARM LEASE - CASH OR CROP SHARES
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 Joel
Lange ("Tenant"), whose address for the purpose of this Lease is
______________________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 Quarter of the Southeast Quarter, Section 36, Township 79
North, Range 27 West of the 5th P.M., Dallas County, Iowa.,
and containing 200 acres, more or less, with possession by Tenant for a term of 200 year(s) to
commence on April 1, 2017, and end on December 15, 2017. 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.
2. RENT. Tenant shall pay to Landlord as rent for the Real Estate (the "Rent"):
a. Total annual cash rent of $ 60,000.00 payable, unless otherwise agreed, as follows: $
30,000.00 on May 1, 2017, $ 30,000.00 on October 1, 2017, and
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
100 % Landlord 0 % 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 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 as may be directed by Tenant. Tenant shall only be entitled to
pasture or till 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 furnished
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 % Tenant
(1) Commercial Fertilizer 0 100
(2) Lime and Trace Minerals 0 100
(3) Herbicides 0 100
(4) Insecticides 0 100
(5) Seed 0 100
(6) Seed cleaning 0 100
(7) Harvesting and/or Shelling Expense 0 100
(8) Grain Drying Expense 0 100
(9) Grain Storage Expense 0 100
(10) Other 0 100
Phosphate and potash on oats or beans shall be allocated n/a% the first year and n/a% the
second year, and on all other crops allocated n/a% the first year and n/a% the second year. Lime
and trace minerals shall be allocated over four 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, 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 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, weeds in the fence rows,
along driveways and around buildings throughout the premises. Tenant shall comply with all
terms of the 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 existing watercourses, waterways, ditches, drainage areas, terraces
and tile drains, and abstain from any practice which will 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 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 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 cropping operation 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 program
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 n/a or elsewhere at no further distant point.
7. LANDLORD'S STORAGE SPACE. If this lease is a crop share lease, Landlord
reserves n/a% of all crib and granary space for storage of the rent share crops.
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 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 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.
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 other of an election not to renew this Lease. If renewed, the tenancy shall
terminate on March 1 of 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 performance of this Lease. All
notices of termination of this Lease shall be as provided by law.
10. 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 $ 250 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.
11. LANDLORD'S RIGHT OF ENTRY AND INSPECTION. Landlord may enter
upon the Real Estate or authorize any other party to enter upon the Real Estate at any time for
any purpose during the term of this Lease. By exercising this right of entry, Landlord shall
reimburse Tenant for damages incurred, including Crop Damages as specified in the Additional
Provisions of this Lease.
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, without any notice to or demand upon Tenant.
13. REPAIRS. Tenant shall maintain the fences on the leased premises 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.
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 erection 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 not be responsible for replacement
or installation of well, windmill, water and septic systems on the Real Estate, beyond ordinary
maintenance expenses. Landlord does not guarantee continuous or adequate supplies of 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 remove, without 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 the terms of this Lease, the prevailing party shall be entitled to recover court costs and
reasonable attorneys' fees.
21. 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.
22. 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.
23. 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 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 without prior written authorization of Landlord.
25. 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.
26. ADDITIONAL PROVISIONS.
CROP DAMAGES: In the event the all or part of the Tenant’s growing crop is damaged due to
the actions of Landlord or Landlord 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 planted,
but before they are 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 determined as follows:
(i) the estimated measurement of the number of acres of crops damaged/destroyed will be
determined (and such number of acres will be determined for each crop so damaged/destroyed, if
more than one crop is impacted) [Acres]
(ii) the per acre yield for the type of crop planted and such amount will be the average annual
yield over the previous three (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 yield 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 from October 1 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 Iowa Department of Agriculture and Land Stewardship (or if such report is no
longer published, then an alternative comparable published source shall be used) will be
determined [Fair Market Price]; and
(iv) after the above items in (i), (ii) and (iii) are determined or estimated for each type of crop,
the total crop damage payment will be determined for such acres of each crop and it will equal
the following: [Acres] x [Yield] x [Fair Market Price].
Landlord agrees to prepare and provide to Tenant a reasonable determination of the measurement
of the area impacted [Acreage], and its determination of the price [Fair Market Price] and
reduced yield [Reduced Yield] (as determined above) and the resulting total payment, which
such information will be provided to Tenant within thirty (30) days after the crop is damaged or
destroyed. Within thirty (30) days of Tenant’s agreement with respect to such calculation and
amount, the payment for such damage or destruction of the crop shall be paid to Tenant by
Landlord.
It is further agreed that, in no event shall Landlord be responsible to pay Tenant any losses of
C:\Users\becky\Desktop\2017 200 Acre Farmland Cash Rent Bid Tabulation.doc
BID TABULATION
200 Acre Farmland Cash Rent Bid
Bids opened: Wednesday, February 15, 2017
10:00 a.m.
Waukee City Hall
Present for bid opening: Matt Jermier, Parks and Recreation Director
Tim Moerman, City Administrator
Becky Schuett, City Clerk
Total Price
Bidders:
1) Joel Lange $300.00/acre
Jefferson, IA $60,000.00 total
2) BBP $232.50/acre
Waukee, IA $46,500.00 total
3) Danny Adams $210.00/acre
Polk City, IA $42,000.00 total
4) Ryan Berger $277.75/acre
Earlham, IA $55,550.00 total
5) Mackenzie Felt $251.00/acre
Adel, IA $50,200.00 total
6) Chris Knoll $272.00/acre
Dallas Center, IA $54,400.00 total
7) Broderick Farm Co. $200.00/acre
Waukee, IA $40,000.00 total
8) Brandon Bice $250.00/acre
Grimes, IA $50,000.00 total
9) Mike Christenson $280.00/acre
Grimes, IA $56,000.00 total