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HomeMy WebLinkAboutItem 06.dDate: February 21, 2017 Item No. FARM LICENSE AGREEMENT WITH BRIAN MURPHY FOR OUTLOT E, WARWEG ADDITION Proposed Action Staff recommends adoption of the following motion: Move to approve Farm License Agreement with Brian Murphy for Outlot E, Warweg Addition. Overview The City has leased and rented farmland to local farmers in the past. The farmland is approximately three acres in size and is located on Outlot E of Warweg Addition, which the City obtained as part of a Purchase Agreement with George Warweg in 2016. Annual revenue to the City will be $540.00. A Certificate of Insurance has been received and is on file with the Parks and Recreation Department. Primary Issues to Consider • None Supporting Information • None Financial Impact: $ 540 Budgeted: Y❑ NO Source: General Fund -Revenue Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Mark Kruse, Parks Superintendent FARM LICENSE AGREEMENT THIS FARM LICENSE AGREEMENT ("License"), entered into this 21" day of February 2017, by and between the CITY OF LAKEVILLE, whose address is 20195 Holyoke Avenue, Lakeville, MN 55044 (hereinafter referred to as the "City") and BRIAN MURPHY, whose address is 6730 Lakeville Boulevard, Lakeville, MN 55044 (hereinafter referred to as the "Murphy"). WITNESSETH: 1. Description. In consideration of the payments and covenants to be paid and performed by Murphy, City does hereby license and Murphy does hereby take from the City a license for the tillable farm land located within the property legally described in the attached Exhibit "A" and depicted on the map attached hereto as "Exhibit B" and made a part hereof ("Premises"). 2. Term. The License shall commence on from the 21St day of February, 2017 and terminate on the 1s' day of January 2020 ("Initial Term"). Thereafter, the License will automatically renew for successive one year terms under the initial conditions of the License ("Renewal Terms"). The City or Murphy may terminate this License at the end of the Initial Term or at the end of each Renewal Term by providing to the other party written notice, which must be given thirty (30) days prior to the end of the Initial Term or the applicable Renewal Term. 3. Payment. Murphy, in consideration of the licensing of the Premises, hereby covenants and agrees to pay to City an annual payment of $540.00 ("Payment") for each year during the term of this License. The first year's Payment shall be payable by Murphy on the 1St day of March, 2017. Thereafter, during the Term of this License, payment shall be received on the 1St day of March of each subsequent year. 4. Acceptance of Premises. Murphy acknowledges that Murphy has farmed the Premises in the past and has inspected the Premises and accepts the Premises in its present condition as suitable for the purposes for which the Premises is licensed. City has no obligation to make any alterations, repairs or improvements to the Premises during the term of this License. 5. Care, Maintenance, Use Covenants. Murphy covenants that Murphy will: (i) farm and care for the Premises in a good husband -like manner, and in accordance with good farming and soil conservation practices; (ii) not commit or permit waste thereon; (iii) carefully protect all improvements of every kind that are now on the Premises; (iv) promptly at the expiration of the term of the License yield up possession of the Premises, without notice, unto the City in as good condition and repair as the Premises now is or may be at any time during the continuance of this License, ordinary wear and tear excepted; and (v) keep the Premises free from all weeds and destroy all weeds along the fences and around all improvements thereon. Murphy acknowledges that City has the right to limit crops and cultivating in specific areas to avoid dust, debris, weeds and etc., from affecting abutting parcels or right of way. Murphy's use of the Premises is limited to farming of the Premises. In no event will livestock be permitted on the Premises for any reason. No storage of equipment is allowed on the Premises except when in use for farming purposes. 6. Approval of Crops. Murphy covenants and agrees to obtain the prior approval of the City for all crops to be raised on the Premises. 191229v2 7. Possession/Termination. City reserves the right to demand possession of all or any portion of the Premises at any time for any purpose and to terminate this License at any time. Whenever City takes possession of all or any portion of the Premises or the License is terminated by City for any reason (except in the event the License is terminated as a result of an event of default by Murphy), and the license is terminated after harvest, but prior to planting, Murphy shall plow under all crop residue and harrow the surface area smooth. In the event a crop is currently planted City shall pay the reasonable value of the planted crop based on the previous year's average crop yield in Dakota County for the crop planted on the Premises as provided by the Farm Service Agency in Farmington, MN. The value of the average crop quantity will be calculated using cash price of the crop at the CHS Savage Minnesota Grain Terminal on the day the License is terminated. 8. Use. City and Murphy shall, as applicable, abide by and conform to all statutes, ordinances, rules and regulations of duly constituted public authorities relating to the use or occupancy of the Premises. 9. Insurance. Murphy covenants that at Murphy's own cost and expense Murphy will purchase and continue in force, in the names of City (by endorsement) and Murphy, general liability insurance against any and all claims for injuries to persons or damage to property occurring in, upon or about the Premises during the term of this License, such insurance to be in an amount not less than One Million ($1,000,000.00) Dollars (combined single limit personal injury and property damage). Such insurance shall be written in a company or companies authorized to engage in the business of general liability insurance in the State of Minnesota, and there shall be delivered to City customary certificates evidencing such paid-up insurance, which certificates are to be issued by the insurance companies and which certificates shall further provide that such general liability insurance may not be cancelled unless City is notified in writing thirty (30) days prior to any such proposed cancellation. 10. Environmental Matters. 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 City to enter into this License, the Murphy covenants, represents and warrants to the City that while this License is in effect Murphy will comply with all applicable Environmental Laws. Murphy shall indemnify City against all claims, demands, charges, damages, orders, judgments, citations, or costs, including reasonable attorneys' fees which City may incur by reason of any violation of Environmental Laws occurring on the Premises for which City may become responsible by reason of City's use of the Premises. 11. Indemnification. Unless the liability for damage or loss is caused by the negligence of City, its agents or employees, Murphy shall indemnify and save harmless City against all liabilities, damages, claims, fines, penalties, costs and other expenses, including all attorneys' fees, which may be imposed upon, incurred by or asserted against City by reason of all of the following: (a) any use or condition of the Premises or any part thereof, (b) any personal injury or property damage occurring on the Premises; (c) any negligence on the part of Murphy, its agents contractors, licensees or invitees; (d) any failure to comply with any requirement of any governmental authority; (e) any litigation 191229v2 2 commenced by or against Murphy to which City is made a party without any fault on the part of City; and (f) any failure on the part of Murphy to perform or comply with any covenant or agreement required to be performed or complied with by Murphy hereunder. 12. Entering by City. The City reserves the right to enter upon the Premises at any time for any purpose. Entry by the City for any of these purposes shall not cause any reduction in Payment. 13. Subletting/Assignment. Murphy shall not sublet the Premises or assign the License without the express written consent of the City. 14. Waiver of Claims. All property belonging to Murphy or any occupant of the Premises shall be there at the risk of Murphy or such other person only, and City shall not be liable for any damage thereto and Murphy waives all claims against City for damages to persons or property sustained by Murphy or any occupant of the Premises, except those claims arising from the negligence of City, its agents or employees. 15. Waiver. One or more waivers of any covenant, term or condition of this License by either party shall not be construed by the other party as a waiver of a subsequent breach of the same covenant, term or condition. The consent or approval of either party to or of any act by the other party of a nature requiring consent or approval shall not be deemed to waive or render unnecessary consent to or approval of any similar act. 16. Relationship of Parties. Nothing contained in this License shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent or of partnership or of joint venture or of any association whatsoever between City and Murphy, it being expressly understood and agreed that neither the payment of rent nor any act of the parties hereto shall be deemed to create any relationship between City and Murphy other than the relationship of landlord and tenant. 17. Events of Default/Remedies. It shall be an "Event of Default" under this License if. (a) Murphy fails to pay rent when due. (b) Murphy fails to comply with all of Murphy's covenants herein. City shall have the right to terminate this License if Murphy fails to cure an Event of Default within ten (10) days written notice. If Murphy fails to cure an Event of Default within the cure period City shall have the right to terminate this License and exercise any remedies available under applicable law to regain possession of the Premises. In the event that Murphy is in default under this License and the License is terminated and Murphy fails to vacate the Premises, the City shall be entitled to recover all costs and expenses including reasonable attorney's fees incurred by City in enforcing the terms of this License and regaining possession of the Premises. The reimbursement required under Paragraph 7 shall not apply. 18. Surrender Upon Termination. Upon termination of this License, whether through expiration or otherwise, Murphy shall quietly surrender and deliver up the Premises to City. 19. 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. 191229v2 3 IN WITNESS WHEREOF, the parties hereto have executed this License as of the day and year first above written. CITY OF LAKEVILLE And Douglas P. Anderson, Mayor Charlene Friedges, City Clerk B<P r Y. Brian Murphy 191229v2 4 EXHIBIT A Description of Premises Tillable farm located within that portion of the following parcel lying west of Ipava Avenue, south of 201" Street West and north of 202'd Street West, addressed as 9649 202nd Street West: The tract of land is described as Outlot E, Warweg Addition. The tillable farm shall not extend southward to within 200 lineal feet of 202nd Street West. Said tract containing three acres more or less. 191229v2 EXHIBIT B Map of Premises Ji sllo g& 202ND ST 191229v2 6 Im