HomeMy WebLinkAboutIX-01 Award Contract Hastings Business Park Ag Lease
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: Justin Fortney, City Planner
Date: December 6, 2021
Item: Award 2022-2023 Industrial Park Agricultural Lease
Council Action Requested:
The City Council is asked to award the 2022-2023 Industrial Park Agricultural Lease contract
to Dave and Joe Birk, the high bidder.
Background Information:
The sealed bid opening on Tuesday November 23, yielded the following results:
Per acre
RKSK Farms 207.00
Dave and Joe Birk 226.50
The winning bid for the last contract period was Dave and Joe Birk for 221.50
Corn and soybeans are allowed in yearly rotations to limit the amount of nitrogen used along
with a requirement to follow U of M Extension best management practices, limits, and
guidelines for the use of nitrogen fertilizer.
As part of the agreement, the lessee will pay real estate tax on the leased farmland, which is
generally about $5,000 per year. The City would notify the lessee with 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 affected area from the annual rent.
Past bidders were notified of the opportunity along with a legal notice in the Hastings Journal.
Financial Impact:
Dave and Joe Birk will be required to pay the city $18,120.00 in 2022, and again in 2023, in
addition to assessed taxes (about $5,000/ year).
Advisory Commission Discussion:
None
Council Committee Discussion:
None
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Attachments:
• Location Map
• Agricultural Lease Agreement
• Terms and Conditions
• Winning Rental Bid Agreement
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