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HomeMy WebLinkAboutItem 06.gMarch 19, 2012 Item No. LAND LEASE AGREEMENT WITH MILLER FARMS Proposed Action Staff recommends adoption of the following motion: Move to approve land lease aareement with Miller Farms. Overview The City of Lakeville has leased and rented farmland to Joseph Miller at Miller Farms in the past; his leases are typically written for a one -year period of time. The farmland is located on Outlot B and D of King Creek Greenway Addition in Dakota County, City of Lakeville. Total rent is $400 and has already been paid to the City. The insurance has also been received and is on file in the Parks & Recreation Department. Primary Issues to Consider • None Supporting Information • Land lease agreement signed by Joseph Miller Gerald S. Michaud Parks & Recreation Director Financial Impact: 400 Budgeted: Y/N Y Source: Related Documents (CIP, ERP, etc.): Notes: CITY OF LAKEVILLE LAND LEASE THIS LEASE ( " Lease "), entered into this 19 day of March, 2012, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation, whose address is 20195 Holyoke Avenue, Lakeville, Minnesota 55044 (hereinafter referred to as the "Lessor ") and MILLER FARMS, a Corporation, whose address is 22222 Dodd Boulevard, Lakeville, Minnesota 55044 (hereinafter referred to as the "Lessee "). WITNESSETH 1. LEASE TERM Lessor hereby leases unto the Lessee certain land legally described as Outlots B and D of King Creek Greenway Addition, Dakota County, Minnesota ("Leased Premises "), from the 1 S ` day of April, 2012 to the 31 st day of December, 2012 ( "Term "). 2. RENT Lessee, in consideration of the leasing of the Leased Premises, hereby covenants and agrees to pay to Lessor $400.00 ("Rent ") for the Term. Rent shall be payable by Lessee upon execution of this Lease. 3. INSURANCE Lessee shall procure and maintain general liability insurance against all claims for injuries and damages occurring on the Leased Premises, such insurance to be in amounts approved by Lessor. Such insurance shall name Lessor as an additional insured and shall contain a provision that the Lessor will be notified in writing thirty (30) days prior to any proposed policy cancellation. 4. TAXES Lessee shall be responsible for all personal property and real estate taxes incurred as a result of this Lease. 5. CARE, MAINTENANCE, USE COVENANTS Lessee covenants that Lessee will: (i) farm and care for the Leased Premises in a good husband -like manner, and in accordance with good farming and soil conservation practices; (ii) not commit or permit waste thereon; Lessee will use only the best seed at Lessee's own expense; Lessee will promptly pay all cost of threshing grain each year; Lessee will keep down all weeds each year and will not allow the same to mature seed at any time; Lessee will not remove or sell any straw or manure, and will use on said Leased Premises where most needed all manure thereon; Lessee will, 136186v01 RNK:01 /02/2008 immediately after harvesting each crop each year, plow said Leased Premises and that in case the Lessee shall fail to do so the Lessee hereby authorizes said Lessor to enter upon said Leased Premises and plow the same at the expense of the Lessee; Lessee will at once, at Lessee's own expense, replace and repair all damages to improvements on said Leased Premises caused by Lessee's want of care or negligence; (iii) carefully protect all improvements of every kind that are now on the Leased Premises; (iv) promptly at the expiration of the term of the Lease yield up possession of the Leased Premises, without notice, unto the Lessor in as good condition and repair as the Leased Premises now is or may be at any time during the continuance of this Lease, ordinary wear and tear excepted; and (v) keep the Leased Premises free from all weeds. 6. ENVIRONMENTAL MATTERS AND INDEMNIFICATION The term "Environmental Laws" shall mean all federal, state and local laws, including statutes, regulations, ordinances, codes, rules and other governmental restrictions and requirements relating to the discharge of air pollutants, water pollutants or process waste water or otherwise relating to the environment or hazardous substances, including but not limited to the Federal Solid Waste Disposal Act, the Federal Clean Air Act, the Federal Clean Water Act, the Federal Resource Conservation and Recovery Act of 1976, the Federal Comprehensive Environmental Responsibility, Cleanup and Liability Act of 1980, regulations of the Environmental Protection Agency, regulations of the Nuclear Regulatory Agency and regulations of any state department of natural resources or state environmental protection agency now or at any time hereafter in effect. In order to induce the Lessor to enter into this Lease, the Lessee covenants, represents and warrants to the Lessor that while this Lease is in effect Lessee will comply with all applicable Environmental Laws. Lessee shall indemnify Lessor against all claims, demands, charges, damages, orders, judgments, citations, or costs, including reasonable attorneys' fees which Lessor may incur by reason of any violation of Environmental Laws occurring on the Leased Premises for which Lessor may become responsible by reason of Lessor's use of the Leased Premises. 7. SUBLETTING /ASSIGNMENT Lessee shall not sublet the Leased Premises or assign this Lease without the express written consent of the Lessor. 8. EVENTS OF DEFAULT /REMEDIES It shall be an "Event of Default" under this Lease if Lessee: 136186v01 2 RNK:01; 02/2008 (a) Fails to pay rent when due. (b) Fails to comply with all of Lessees covenants herein. Lessor shall have the right to terminate this Lease if Lessee fails to cure an Event of Default within ten (10) days written notice. If Lessee fails to cure an Event of Default within the cure period Lessor shall have the right to terminate this Lease and exercise any remedies available under applicable law to regain possession of the Leased Premises. In the event that Lessee is in default under this Lease and the Lease is terminated and Lessee fails to vacate the Leased Premises, the Lessor shall be entitled to recover all costs and expenses including reasonable attorney's fees incurred by Lessor in enforcing the terms of this Lease and regaining possession of the Leased Premises. 9. BINDING EFFECT This Lease shall extend to and be binding upon the heirs, executors, administrators, trustees, successors, receivers and assigns of the parties hereto. 10. NOTICE All notices to the parties shall be sent to the addresses set forth herein and shall be effective upon personal delivery or three (3) business days after placed in the U.S. Mail postage prepaid. IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first above written. LESSOR: CITY OF LAKEVILLE Mark Bellows, Mayor AND: Charlene Friedges, City Clerk LESSEE: MILLER FARMS BY: Its , 13618601 RNK:01 /02/2008