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Home My WebLink AboutRESOLUTION NO. 2017-89 RESOLUTION NO. 2017-89 RESOLUTION APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF FAIRFAX AND DONALD MARTIN WHEREAS, City staff has issued a Public Notice (the "Public Notice") with respect to the leasing of land generally located east of Highway 151, west of the Fairfax Regional Sports Complex, south of Linn Street and north of East Southview Road in Fairfax, Iowa containing approximately 23.50 acres, a copy of which Public Notice is attached hereto as Exhibit "A" (the "Real Estate"); and WHEREAS, the City has received multiple bids with respect to the Public Notice; and WHEREAS, after a hearing on the matter, the City desires to enter into a lease agreement with Donald Martin, 2972 110'" Street, Norway, Iowa 52318. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAIRFAX, IOWA, THAT: 1. The Lease, attached hereto as Exhibit"B" and incorporated herein by reference, is hereby approved. 2. The Mayor is authorized to execute the Lease. Passed and approved this 10th day of October, 2017. Voting: Council Member Wainwright moved the adoption of Resolution 2017-89, seconded by Council Member Daly. AYES: Beer, Daly, and Wainwright NAYS: None ABSENT: Kell + VOLK urnell G. Frieden, Mayor r. }7 j sa A ATTEST: r' r y hia Stimson,-City Clerk/Treasurer � y»8 8 NOTICE OF PUBLIC HEARING CITY COUNCIL OF THE CITY OF FAIRFAX, STATE OF IOWA ON THE MATTER OF CONSIDERING A FARM LEASE PUBLIC NOTICE is hereby given that the City Council of the CITY OF FAIRFAX, STATE OF IOWA will hold a public hearing on October 10, 2017, at 6:00 P.M. in the City Council Chambers, City Hall, 300 80th Street Court, Fairfax, Iowa, for the purpose of considering a Farm Lease for the 2018-2019 Crop Years, and perhaps beyond, for approximately 23.5 acres, currently being farmed within the property legally described as follows: THE S 1/2 NE 1i4 SECTION 16-82-8, LINN COUNTY IOWA, LYING NORTH OF CHICAGO, MILWAUKEE & ST. PAUL RAILWAY COMPANY'S LAND, EXCEPT A TRACT IN THE NORTHWEST CORNER WHICH IS 260 FEET IN LENGTH EAST AND WEST BY 210 FEET IN WIDTH NORTH AND SOUTH. SUBJECT TO PUBLIC HIGHWAY. All proposals for leasing the above-describedproperty will be heard at a meeting of the City Council scheduled for the same date as the public hearing. The City Council will consider at that time all proposals for leasing the property, as well as comments made in writing or orally relating to the proposals. Subsequent to the public hearing, the City Council may or may not take action on any of the proposals and reserves the right to refuse any and all submitted proposals. This notice is given pursuant to Section 364.7 of the Code of Iowa. Dated this 28th day of September, 2017. Cynthia Stimson, City Clerk/Treasurer City of Fairfax in the State of Iowa CITY OFFAIRFAX - CASH FARN19 RENTAL BUD FORM 2017 23.50 Acres ofC.rop GR-o> n(l 2018 & 2019 This form may be Ned out and suNnhWd as a bid or another Ann or plaid paper Wd may be Sued. In chher case, the bid imust be gutmnRod by Wednesday, October 4, 2017, M 410 PM, at the; F&rlx CAI 14WL 300 800 Street Court, in Fairfax, Iowa. 'rhe name, address, and phone number of the bidder 111LIst be visible on the outside of the sealed envelope containing the bid so that any WAYS acidmMuns can be communicated should ley OCCUl'. 1, (please print name) hereby place my bid of ........-------- per acre Wr twmly-five and seven tenths acres Or a total of for leasing of City of Fairfax land, If this bid is accepted, I will abide, by the terms of thclease. Signed this clay of 2017 Signature Address Telephone Number ............... Ile City of Fairfax reserves the right to refuse my nud all bids reedved. CITY OF FAIRFAX IOWA CASH HNT FARM LEASE FOR 2018 AND 2019 Owner: City of Fairfax Tenant: Donald Martin, 2972 110`x' Street, Norway, IA 52318 1. Terms of Lease: The term of the Lease shall be for a period of two years, beginning March 1, 2018 and ending on March 1, 2020. 2. Acres: There are 23.50 contract acres available according to GIS farming technology. There are no housing, buildings, or storage structures located on the Real Estate. The property covered by this Lease ("Real Estate") is displayed on the attached Exhibit A as being planted in row crops and contained within the larger parcel that is legally described as: THE S %NE'/a SECT ION 16-82-8,LINN COUNTY IOWA,LYING NORTH OF CHICAGO, MILWAUKEE & ST. PAUL RAILWAY COMPANY'S LAND, EXCEPT A TRACT IN THE NORTHWEST CORNER WHICH IS 260 FEINT IN LENGTH EAST AND WEST BY 210 FEET IN WIDTH NORTH AND SOUTH. SUBJECT TO PUBLIC HIGHWAY. 3. Cash Rent: Tenant agrees to pay the Owner cash rent for the use of the Real Estate as follows: Amount Cropland 23.50 acres a $256.00/acre $6,016.00 The cash rent shall be due and payable as follows: Due Date: 6/1/2018 Amount $3,008.00 Due Date: 12/1/2018 Amount $3,008.00 Due Date: 6/1/2019 Amount $3,008.00 Due Date: 12/1/2019 Amount $3,008.00 All cash rent is to be delivered to the Owner at Fairfax City Hall, 300 80°i Street Court, Fairfax, Iowa or mailed to City of Fairfax, PO Box 337, Fairfax, IA 52228. 4. USDA Commodity Program Payments: Payments shall be paid to the Tenant unless otherwise agreed on with the Farm Service Agency. 5. Recreational Use: Use of the Real Estate is not allowed for hunting or other recreational purposes without written consent of the Owner. 6. Division of Expense: All crop production expenses are the responsibility of the Tenant. Cost of lime and application only will be treated as follows: The first year, if needed, lime and application costs will be split 50% City of Fairfax and 50% Tenant. Date;�a�_l7 Owner's Initials� Tenant's Initials' 1 The Tenant is responsible for any lime and application costs for subsequent years. Any trucking expense for the lime and application will the responsibility of the Tenant for all years. 7. Expenses: No expense shall be incurred by the Operator for or on account of the Owner without first obtaining written permission from the Owner. The Operator agrees to take no actions that might cause a mechanic's or other lien to be imposed upon the Real Estate and agrees to indemnify the Owner if actions are taken by the Tenant that result in such a lien being imposed. 8. Repair and Maintenance: Minor repairs for fences: Owner will furnish all materials and Tenant will provide the labor at no charge. New fence: Owner must pre-approve any new fence project. Owner to furnish all materials and one-half of the cost of labor. Tenant to provide one- half of the labor and all of the equipment to construct fence. Owner to pay 100% of the cost to clear fence row when necessary. 9. Tenant's Duties: Tenant agrees to operate the farm in an efficient and steward-like manner; control weeds and brush in the fields, fence rows, and road ditches; and to provide property maintenance to control erosion and maintain terraces, waterways, and tiles and all other areas where access is possible. The Tenant agrees to furnish to the Owner by December 15 an annual report including 1) a summary of fertilizer, lime, and pesticide application records and 2) production or yield information about harvested crops each year, such as may be required for participation in Farm Service Agency programs or for setting crop insurance actual production history yields, and to use measurement methods acceptable for these purposes. Tenant agrees, on termination of the lease, to yield prompt possession of the Real Estate to the Owner and to leave the premises in as good condition as before they tool(possession or to compensate the Owner for damages. Tenant fully indemnifies and holds Owner harmless from any and all liabilities imposed on Owner that are related to Tenants use of the Real Estate and Tenant's obligations pursuant to this lease. 10. Owner's Duties: Owner agrees to warrant and defend clear and marketable title to the Real Estate as long as this lease remains in effect. The Owner will promptly pay real property taxes and carry insurance on the City of Fairfax's interest in this property. 11. Harvested Crop's Aboveground Plants: Tenant does not have the right to take any part of the harvested crop's aboveground plant without the express written permission of the Owner. This includes burning or removing any crop residues from the Real Estate. 12. Transfer of Interest: The Tenant agrees not to lease or sublet any part of the Real Estate nor assign this lease to any other person or entity, nor sublease any or all of the property described herein without prior written permission of the Owner. This lease shall be binding upon the heirs, assignees, or successors in interest of both parties. If the Owner should sell or otherwise transfer title to the Real Estate, the Owner will do so subject to the provisions of this lease. Date Owner's h7itials enant's Initials �� 2 13. Changes in Lease Terms: The conduct, representation, or statement 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 an addendum to this lease. 14. Right of Entry: The Owner reserves the right to enter the premises at any time for any reasonable purpose. Upon notice of the lease termination, the Tenant agrees to permit the Owner or the Owner's lessee, agent, stal , or elected official to enter the premise to do customary tillage and operations on any land from which the current crops have been harvested. 15. Owner's Landlord's Lien and Security Interest: The Tenant acknowledges that a statutory Landlord's Lien exists in favor of the Owner. The Tenant also grant to the Owner a security interest in, but not limited to, all growing or mature crops on the Real Estate as provided in the Iowa Uniform Commercial Code. The Tenant shall sign all documents and financing statements as requested by the Owner to perfect the Owner's security interests. 16. Termination Upon Default: If either party defaults in the performance of the existing rental agreement, the non-defaulting party shall serve a notice of default upon the defaulting party. The defaulting party shall have 30 days to cure the default. Failure to cure within the required timeframe shall terminate the lease. All costs and attorney fees of the Owner to enforce collection or performance shall be added to the obligations payable by the Tenant. The Tenant shall also be liable for interest on payments at the rate of 10% APR. 17. Environmental: 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 shall not be stored on the premises for more than one year. Farm chemicals for use on other properties shall 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 immediately notify Landlord of any chemical discharge, leak, or spill which occurs on premises. Tenant shall assume liability and shall indemnify and hold Owner 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. Date _/`�/' Owner's Initia , enant's Initials /�' � 3 18. Security Interest and Landlord's Lien: As security for all sums due or which will become due from Tenant to Owner, Tenant hereby grants to Owner, 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. 19. Personal Guarantees: If Tenant is an entity, the undersigned, being all the owners of Tenant, hereby jointly and severally personally guarantee to Owner the timely and complete fulfillment of all of"Tenant's obligations required by this lease. We agree to the terms and conditions of this lease and we affix our signature this dad of ; , 2017. r Donald Martin, Tenant Burnell G. Frieden, Mayor City of Fairfax 2972 110`i' Street PO Box 337, 300 80`i' Street Court Norway, IA 52318 Fairfax, IA 52228 319-981-0340 31.9-846-2204 STATE OF IOWA, COUNTY OF LINN ss: Al This lease was acknowledged and signed before me this day of, �� 2017, by - o C ." CYNTHIA K STIMSON M 114 > Nflotarial Seal IOWA No tar for the State of Iowa 10WA Commission No, 128033 My Commission Expires April 13,2019 STATE OF IOWA, COUNTY OF LINN ss: / This lease was acknowledged and signed before me this / W—'-day of, 2017, by KIMBERLY DONALDSON Commission Number 790647 My Commission o Expires Iry for the State of Iowa 06122//( Date��7a[ Owner's Initial Tenant's Initials f l 9 4