Loading...
HomeMy WebLinkAboutItem 06.l Date: Item No. TERMINATE FARM LICENSE AGREEMENT WITH BRIAN MURPHY AND APPROVE LICENSE AGREEMENT WITH VEIT & COMPANY TO USE CITY PROPERTY Proposed Action Staff recommends adoption of the following motion: Move to terminate Farm License Agreement with Brian Murphy, and approve License Agreement with Veit & Company for use of City property. Overview At their February 21, 2017 meeting, the City Council approved a Farm License Agreement with Brian Murphy to farm the City-owned parcel described as Outlot E, Warweg Addition. The parcel is located west of Ipava Avenue, south of 201st Street and north of 202nd Street. Veit & Company (Veit) is the contractor for the Kenwood Trail (CSAH 50) Reconstruction Improvements (Project). Veit searched for an area near the Project corridor to temporarily store construction-related materials and identified Outlot E, Warweg Addition as a location that would support existing and future construction-related activities. The attached agreement with Veit identifies the terms and conditions associated with the temporary land use. Under the terms of the Farm License Agreement, the City can terminate the agreement and compensate Mr. Murphy the value of any planted crops. City staff worked directly with Mr. Murphy to establish a reasonable value for the planted crops. Under the terms of the proposed License Agreement, Veit will reimburse the City the cost of the planted crops. Primary Issues to Consider • Veit is responsible for the repair and maintenance of the City-owned land. The License Agreement term is November 3, 2018. Supporting Information • License Agreement Financial Impact: $ Budgeted: Y☐ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Zach Johnson, City Engineer 0 N/A August 7, 2017 193680v1 LICENSE AGREEMENT THIS LICENSE AGREEMENT is made, executed and entered into this _______ day of August 2017, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation, whose address is 20195 Holyoke Avenue, Lakeville, MN 55044 (“City”) and VEIT & COMPANY, INC., a Minnesota corporation (“Licensee”). RECITALS A. The City is the owner of real property described in Exhibit A attached hereto (“City Property”). B. The Licensee desires to obtain a license for storage of construction materials over and across a portion of the City Property described in Exhibit B attached hereto (“Premises”). C. The City is amenable to the granting of the license hereinafter set forth, subject to the terms and conditions hereinafter described. NOW, THEREFORE, the parties do hereby agree as follows: 1. Grant of License. The City does hereby grant to the Licensee a non-exclusive, non-transferable license to store construction materials over and across the real property legally described on the attached Exhibit “B”. 2. Exhibits. The following exhibits are attached to and by reference made a part of this License Agreement: Exhibit “A” - Legal description of Property. Exhibit “B” - Description of Premises 3. Premises to be Used. The City agrees to allow the Licensee to store construction materials on a portion of the Property as depicted in Exhibit “B” (“Premises”). 4. Payment. Licensee, in consideration of the licensing of the Premises, hereby covenants and agrees to pay to the City $3,182.02 upon execution of this License Agreement. 5. Authorized Use. The Licensee shall be obligated at its sole cost and expense to store construction related materials in a good and workmanlike manner and in accordance with all applicable codes and regulations. The work shall be subject to City inspections and approvals. Licensee’s use of the Premises shall be non-exclusive. 6. Conditions. The City and the Licensee agree that the Licensee will use the Property subject to the following conditions: A. The Licensee acknowledges that the Licensee has inspected the Premises and is fully satisfied with its physical condition and agrees to accept the Premises in its present "as is" condition. Neither the City nor any representative of the City has made any 193680v1 2 warranties or representations upon which the Licensee relies with respect to the physical condition of the Premises. B. The Licensee accepts the Premises subject to such conditions, restrictions, and limitations, such as utility easements and public right of way, which presently appear of record in regard to the Premises. C. The Licensee accepts the Premises subject to any applicable health, life, safety, fire, or zoning ordinances, codes, regulations or statutes of the City, the County of Dakota, the State of Minnesota, or any other governmental body now existing or which may hereinafter exist by reason of any legal authority during the term of this License Agreement. D. The Licensee accepts the Premises and is satisfied as to the boundary lines and contents of its premises and likewise satisfied with the sufficiency of the present title of the City. 7. Term. The term of this License Agreement shall be for effective August 10, 2017, through November 3, 2018, unless sooner terminated as hereinafter provided (“Term”). 8. Termination. The City may immediately terminate the conditions of the License Agreement if, in the sole discretion of the City, the Premises is deemed to be unsafe or the Licensee fails to maintain the Premises. In the event the City terminates the License Agreement because of safety concerns or maintenance issues, the Licensee shall forfeit its interest in its entirety and comply with the requirements set forth in Section 19 when vacating the premises. 9. Taxes. Licensee shall be responsible for all personal property and real estate taxes incurred as a result of this License. 10. Repair and Maintenance. The City and the Licensee agree that the Licensee will be responsible for any and all repair and maintenance of the Premises during the term of this License Agreement. Maintenance shall include, but not be limited to, keeping the Premises clean of trash, mowing and trimming. The City shall be allowed unrestricted access to the Premises for any purpose including, but not limited to, maintaining or installing utilities on the Premises. 11. 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. 193680v1 3 In order to induce the City to enter into this License, the Licensee covenants, represents and warrants to the City that while this License is in effect Licensee will comply with all applicable Environmental Laws. Licensee 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. 12. Indemnification. The Licensee agrees to indemnify and save harmless the City from and against all liability, damages, penalties, judgments, or claims of whatever nature arising from injury to person or property sustained by anyone arising out of the Licensee's use and occupancy of the Property or Premises and will at the Licensee's own cost and expense defend any and all suits or actions (just or unjust) which may be brought against the City or in which the City may be impleaded with others upon any such above-mentioned matter, claim, or claims. This indemnification in no way limits the Licensee's obligation to maintain a blanket or other general liability insurance policy for the benefit of the City. This indemnity and hold harmless agreement will include indemnity against all costs, expenses, and liabilities incurred in or in connection with any such claims or proceedings brought thereon and the defense thereof. 13. Liability Insurance. the Licensee will, at the Licensee's sole cost and expense, provide and maintain during the term of this License Agreement a blanket or general liability insurance policy against claims for personal injury, death, or property damage occurring in connection with the use and occupancy of the Property, said policy will have limits of not less than One Million and 00/100 Dollars ($1,000,000.00) combined single limit. 14. Property Damage Insurance. The Licensee will, at the Licensee's sole cost and expense, provide and maintain all risk property insurance during the term of this License Agreement in an amount sufficient to cover all items of property owned, maintained, or controlled by the Licensee on the Property. 15. Requirement for All Insurance. All insurance policies (or riders) required by this License Agreement will be (i) taken out by the Licensee and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State of Minnesota, (ii) will contain a provision that the insurer will not cancel or revise coverage thereunder without endeavoring to give written notice to the Licensee as an insured party and to the City as an additional insured at least ten (10) days before cancellation or revision becomes effective, (iii) will name the Licensee as an insured party and “City of Lakeville” as an additional insured, (iv) will be in accordance with specifications approved by the City Lakeville for the City, and (v) will be evidenced by a Certificate of Insurance listing “City of Lakeville” as an additional insured which will be filed with the City. 16. Assignment. The Licensee will not by operation of law or otherwise assign or permit the Premises as depicted and described in this License Agreement to be used by others without the City’s prior written consent in each instance. 193680v1 4 17. 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 Licensee, 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 Licensee other than the relationship of licensor and licensee. 18. Default. If the Licensee at any time defaults in the observance of any of the terms, covenants, and conditions of this License Agreement, including any exhibits thereto, the City will immediately notify the Licensee of the Licensee's failure to observe such terms, covenants, and conditions. Upon such notice being given by the City, this License Agreement will wholly cease and terminate and the Licensee will have no rights or interests whatsoever to further use or occupy the Premises. 19. Surrender of Possession. The Licensee agrees that at the expiration or cancellation of this License Agreement, the Licensee will yield up possession of the Premises. Upon surrendering possession of the Premises, the Licensee agrees to return the Premises to the condition it was in prior to the term of this Lease. 20. Successors and Assigns. The City and the Licensee agree that this License Agreement will be binding upon and inure to the benefit of the successors and assigns of the parties hereto in accordance with the terms and conditions of this License Agreement and any statutes, regulations, ordinances, or city code provisions applicable thereto. 21. Written Notices or Other Correspondence. Any written notice or other correspondence to be provided by and between the City and the Licensee in accordance with this License Agreement will be either hand delivered or mailed by registered or certified mail to the following addresses: CITY: City Administrator City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 LICENSEE: General Counsel 14000 Veit Place Rogers, MN 55374 22. Waiver of Default. Any waiver by the City of a default under the provisions of this License Agreement by the Licensee will not operate or be construed as a waiver of a subsequent default by the Licensee. No waiver will be valid unless in writing and signed by the Mayor and attested by the City Clerk on behalf of the City. 23. Invalidity of Provisions. If any term or provision of this License Agreement or any application hereof to any person or circumstance is to any extent found to be invalid or 193680v1 5 unenforceable, the remainder of this License Agreement or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable will not be effected thereby and each term and provision of this License Agreement will be valid and be enforced to the fullest extent permitted by law. 24. Entire Agreement. This instrument herein contains the entire and only agreement between the parties and no oral statements or representations or prior written matter not contained in this instrument will have any force and effect. This License Agreement cannot be modified in any way except by writing executed by both parties. 25. Governing Law. This License Agreement will be governed exclusively by the provisions hereof and by the laws of the State of Minnesota, as the same from time to time exists. [remainder of page intentionally blank] [signature pages to follow] 193680v1 6 IN WITNESS WHEREOF, the parties have hereunto set their hands as of the day and year first above written. CITY OF LAKEVILLE By: Douglas P. Anderson, Mayor And ________________________________ Charlene Friedges, City Clerk 193680v1 7 LICENSEE: VEIT & COMPANY, INC. By: Its: 193680v1 8 EXHIBIT “A” Legal Description of Property The real property lying west of Ipava Avenue, south of 201st Street West and north of 202nd Street West, addressed as 9649 202nd Street West: The tract of land is described as Outlot E, Warweg Addition. 98111 193680v1 EXHIBIT “B” Description of Premises Tillable farm located within that portion of the following parcel lying west of Ipava Avenue, south of 201st Street West and north of 202nd Street West, addressed as 9649 202nd Street West The tract of land is described as Outlot E, Warweg Addition. Licensee’s use of the Property shall not extend southward to within 200 lineal feet of 202nd Street West.