HomeMy WebLinkAbout20090921 - VI-04Memo
To: Mayor Hicks and City Council
From: Kari Barker, Associate Planner
Date: September 21, 2009
Subject: Award 2010-2011 Industrial Park Agricultural Lease -Carlson Ag, Inc.
REQUEST
The City Council is asked to award the 2010-2010 Industrial Park Agricultural
Lease contract to Carlson Ag, Inc. The lease area consists of approximately 82
tillable acres. Carlson was the high bidder at $165.00 per acre. Carlson Ag, Inc.
is also the current lessee paying $151.00 an acre. Four bids were received as
follows:
• Carlson Ag, Inc. - $165.00 per acre
• DSK Farms - $128.11 per acre
• Bill Bauer - $142.50 per acre
• RKSK Farms - $112.00 per acre
As part of the agreement, Carlson would pay for the real estate tax on the leased
farmland. The City would continue contact with Carlson on any impending sale of
land for industrial uses. If the land is already planted, and the crop cannot be
harvested, the City will deduct the costs of planting the effected area from the
annual rent.
ATTACHMENTS
• Location Map
• Agricultural Lease Agreement
• Terms and Conditions of the Lease Agreement
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Map Date:
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Site
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AGRICULTURAL LEASE AGREEMENT
CITY OF HASTINGS
HASTINGS INDUSTRIAL PARK AG LEASE
This agreement for leasing approximately 82 acres of land in the Hastings Industrial Park
for the sole purpose of farming, is made and entered into this 21st day of September 2009,
by and between the City of Hastings (City) and
(lessee), both of whom understand as follows.
This agreement includes all the provisions of the terms and conditions attached, and the
rent proposal document submitted by the lessee to the City dated September 15, 2009.
The term of this agreement is from January 1, 2010 to December 31, 2011.
Lessee
Lessee
Paul J. Hicks, Mayor
(seal)
Melanie Mesko Lee, City Clerk
TERMS AND CONDITIONS
AGRICULTURAL LEASE AGREEMENT
CITY OF HASTINGS
HASTINGS INDUSTRIAL PARK AG LEASE
1. The property leased is shown on the attached map, approximately 82 acres in the
Hastings Industrial Park. The amount of acreage is based on a survey, but is not
warranted by the City. The City makes no warranty as to the condition of the property.
The lessee has inspected the property and agrees to lease the property as is.
2. This agreement is for two crop years, 2010 and 2011. Annual rent will be paid in full and
received at City Hall, 101 East 4th Street, Hastings, Minnesota 55033 by October 30,
2010 and again by October 30, 2011.
This City property while under lease is subject to property tax to be paid by the lessees or
user. Taxes are in addition to the rent. The Dakota County Assessors Office will be
notified of the cur•ent acreage and any changes made by the City during the term of the
lease. Notification may not be in time to change the property tax, in which case the rent
will be reduced by excess taxes paid on a per acre basis.
4. The lessee shall exercise due care when working so not to cause any damage to
neighboring property, roads, and ditches, shall not access the property directly from
Spiral Blvd, shall leave the property in neat and clean condition after harvest, shall
maintain proper weed control on the property, and shall remove all crops from the
property before the expiration of this agreement.
The lessee shall furnish at his own expense all labor, equipment, materials and services
required to faun the property.
6. The lessee shall not hold the City liable for any damages or injuries related to farming
this property.
7. The lessee understands that the property is for sale and that the City reserves the right to
sell any amount at any time. The City will advise the lessee of any sales known or
pending at that time prior to planting in the spring. The lessees' interest, under the terms
of this agreement, in the acres sold is terminated at the time of closing. Lessee agrees to
sign any document terminating lessee's leasehold interest in any property which is sold.
At the discretion of the City, the lessee shall be permitted to tend and harvest the crops
before the new owner takes possession, OR the rent and farming input costs incurred for
the acreage sold shall be deducted from the year's rent.
8. The lessee shall implement best management practices (BMPs) to minimize Nitrate
(N03) infiltration into the groundwater in accordance with the Best Management Plan
(BMP) Guidelines for using Nitrogen Fertilizer (Exhibit A).
The undersigned lessees have read and agree to
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