2007 Lease Agreement
LEASE AGREEMENT
This Lease Agreement, made and entered into thiS~~y of October, 2007, by and
between CITY OF SALINA, KANSAS, a municipal corporation, hereinafter referred to as
"City", and EASTRIDGE DEVELOPMENT, INC., a Kansas corporation, hereinafter referred to
as "Lessee", WITNESSETH:
The City, in consideration of the rents, covenants and agreements of Lessee herein set
forth does hereby grant, lease and rent to Tenant the following described real estate:
See attached "Exhibit A";
Together with appurtenances thereunto belonging, all of which are referred to herein as
the "Premises";
WHEREAS, the Lessee desires to lease for farming purposes the Premises, and City is
willing to grant said lease;
NOW, THEREFORE, City and Lessee agree as follows:
I. Term of Lease. The term of this agreement shall be for a period of twelve (12)
months commencing on November I, 2007 and shall be renewed automatically for a like term
unless terminated in writing ninety (90) days prior to the end of the initial term or any renewal
, term or otherwise terminated in accordance with the relevant provisions of this contract, subject
to the right of Lessee to harvest any crops that are growing on the date this Lease terminates.
2. Earlv Termination. City reserves the right to terminate this Agreement on all or
any portion of the Premises from the terms of this Agreement by delivery to Lessee of 90 days
prior written notice of its intention to do so, describing specifically the portion of the Premises
affected by said termination notice. Lessee agrees to surrender possession of the Premises, or the
identified portion of said Premises subject to termination, no later than the last day identified in
said termination notice or following harvest of any crop planted in the Premises or the portion
thereof subject to the termination notice, whichever event last occurs.
3. Rental. Lessee agrees to pay the City as rental for the Premises an annual cash
rental of $2,580.00 (calculated by multiplying $40.00 per acre times the number of acres
constituting the Premises). The cash rental provided for herein shall be due and payable to City
from Lessee on November I of each year commencing November I, 2008.
4. Possession. Lessee shall be entitled to possession of the Premises immediately
following execution of this Agreement and may remain in said possession for and during the
term of this Agreement.
5. Right to Re-enter Premises and Surrender of Possession. City reserves the right to
enter the Premises at reasonable and proper times for the purpose of inspecting the Premises or
for the purpose of installation or maintenance of utilities. The parties agree that upon
termination of this Lease, Lessee shall peaceably and quietly surrender and deliver possession of
the Premises to the City, free of all permitted subtenancies. If Lessee fails to perform any
provision of this Lease within ten (10) days after receipt of written notice from the City to cure
such default, or in the event Lessee abandons the Premises before the end of the term of the
Agreement, or in the event Lessee is adjudged bankrupt or insolvent or makes an assignment for
the benefit of creditors or commits any act of bankruptcy, the City shall have the right to pursue
any remedy at law or in equity available to it under the laws of the State of Kansas, including
without limitation terminating this Lease and taking possession of the Premises without
additional demand or notice and without any court order or other process of law.
6. Compliance with Law. Lessee shall comply with all applicable laws, ordinances
and regulations of the State of Kansas, Saline County, and the municipality wherein the Premises
are located.
7. Ouiet Enjovment. City warrants that Lessee shall be granted peaceful and quiet
enjoyment of the demised Premises free from any eviction or any interference by City if Lessee
pays the rent and other charges provided herein and otherwise fully and punctually performs the
terms and conditions imposed on Lessee.
8. Care and Use of Premises; No Sublease bv Lessee. Lessee covenants to farm and
care for the Premises in a good and workmanlike marmer and in accordance with good farming
and soil conservation practices. The tenant shall not change the current use of the Premises, e.g.,
going from tilled acreage to pasture, without the advance rewritten approval from the City.
Lessee shall not commit or permit waste thereon by virtue of failure to properly protect the
Premises from wind or water erosion. Further, without the prior written consent of the City,
Lessee shall not have the right to sublet the Premises or any part thereof, and no assignment shall
be allowed without written consent of the City.
9. Fertilizer and Weed Control. In addition to the rental stated in paragraph 3
hereof, Lessee agrees to furnish all material, labor and equipment to properly apply all necessary
fertilizer and weed eradicator in the treatment of noxious weeds on the Premises, all at Lessee's
sole cost and expense.
10. Seed, Labor, Machinerv and Chemicals. Lessee shall furnish at Lessee's sole
expense all seed to be used on the Premises, all labor, machinery and chemicals during the term
of this Agreement, and shall plant, raise, cultivate and thresh all crops grown on the Premises at
Lessee's own expense.
11. Hunting. Lessee shall not permit any person to hunt upon the Premises.
12. Nuisance. Lessee shall not during the term hereon maintain, commit or permit the
maintenance or commission of any nuisance on the Premises.
13. Inspection. Lessee has inspected the Premises and accepts them in their present
and existing condition.
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14. Access. City and Lessee acknowledge that the eastern boundary of the Premises
is or will be appurtenant to a railroad right-of-way maintained by the Union Pacific Railroad
Company and that access across said right-of-way shall be obtained but shall be limited by the
availability of such access permitted by the Union Pacific Railroad. City further agrees to
establish a second access along the west boundary line of the Premises along W oodland Avenue
in the event that access across the Union Pacific Railroad right-of-way shall be generally
unavailable.
15. Government and Agricultural Programs. Lessee agrees to comply with all farm
crop programs promulgated by the United States Department of Agriculture. City agrees that it
will cooperate with Lessee in abiding by all terms and conditions of any governmental
agricultural programs which are now in effect or which may be applicable during the term of this
Agreement. City further agrees that Lessee shall receive all benefits of all farm programs
pertaining to the Premises during the term of this Agreement, including but not limited to
programs administered by the Farm Service Agency which include the Loan Deficiency Payment
Program, the Production Flexibility Contract, and the Market Loss Assistance Program.
16. Insurance. Lessee agrees to secure and maintain at Lessee's sole expense in full
force and effect until the completion of this Agreement such liability insurance for Lessee's
operations which may arise from the conditions of this Agreement. Such insurance shall be
written by a reliable insurance company authorized to do business within the State of Kansas in
such amount as the City and Lessee shall subsequently agree. Upon request Lessee shall deliver
to the City a certificate of such insurance.
17. Taxes and Liens. City agrees to pay all real estate taxes and assessments which
may by levied against the Premises during the term of this Agreement. City shall pay when due
all fees, assessments charges, and taxes of any kind that may now or hereafter be imposed upon
ownership, leasing, renting, possession, or use of the Premises, excluding, however, all taxes on
or measured by Lessee's income. When the Premises are in Lessee's possession, Lessee shall
keep it free and clear of all levies, liens, and encumbrances, other than those being contested
which do not adversely threaten the City's title to the Premises.
18. Liabilitv of City. Lessee shall be in exclusive control and possession of the
Premises and the City shall not be liable for any injury or damage to any property or to any
person on or about the Premises or for any injury or damage to any property of Lessee or any
other person.
19. Indemnification. Lessee shall hold harmless and indemnify the City against all
liability, loss, damage, expense, and judgment relating to Lessee's use of the Premises, including
but not limited to any damage, neglect, or misadventure arising from or in any way growing out of
the use, misuse, or abuse of the Premises, or any failure of Lessee to comply with the terms of this
Lease. Each party agrees that it shall give the other prompt notice of the assertion of any such claim
or the institution of any such action, suit or proceeding.
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20. Ownership. The Premises are, and shall at all times, be and remain, the sole and
exclusive property of the City. Lessee shall have no right, title or interest in the Premises except as
expressly set forth in this Lease.
21. Partnership. It is expressly agreed that this Agreement is one of lease and not of
partnership, and that the City shall not become responsible for any debts contracted by Lessee.
22. Improvements. Lessee shall not make any alterations or additions to the Premises
unless otherwise approved in writing by the City in advance of the proposed alteration or addition.
23. Merger Clause. The parties intend these terms to be a complete, conclusive and
final expression of all the conditions of their agreement. No other promises, statements,
warranties, agreements or understandings, oral or written, made before or at the signing thereof,
shall be binding unless in writing and signed by all parties and attached hereto. Any amendment
to this Lease, including an oral modification supported by new consideration, must be reduced to
writing and signed by both parties before it will be effective.
24. Paragraph Headings. The title to the paragraphs of this Agreement are solely for
the convenience of the parties and shall not be used to explain, modify, simplify, or aid in the
interpretation of this Agreement.
25. Binding Effect. This Lease shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, personal representatives, successors and assigns and may
be executed in any number of counterparts, each of which shall be deemed an original, or in
multiple originals, and all such counterparts or originals shall for all purposes constitute one
agreement.
26. Severabilitv and Waiver. No waiver by either party of any default hereunder shall
operate as a waiver of any other default. If a court of competent jurisdiction determines any
provision of this Agreement to be contrary to law, the remaining provisions of this Agreement shall
remain in full force and effect.
27. Notice. Service of all notices under this Lease shall be sufficient if given personally
or mailed by certified mail, return receipt requested, to the party involved or at its respective address
stated below, or at such address as such party may provide in writing from time to time. Any such
notice mailed to such address shall be effective when deposited in the United States mail, duly
addressed, and with postage prepaid, to the party to be notified at the address set forth as follows:
"CITY"
"LESSEE"
City of Salina
A TTN: City Manager
300 W. Ash, P.O. Box 736
Salina, KS 67402-0736
Eastridge Development, Inc.
ATTN: Daniel C. King, President
1190 Columbine Circle
Salina, KS 67401
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28. Governing Law. This Agreement shall be governed by the laws of the State of
Kansas. This Lease shall be interpreted according to its fair meaning, and not in favor of or against
any party.
IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year
herein stated.
"CITY"
"LESSEE"
CITY OF SALINA
EASTRIDGE DEVELOPMENT, INC.
By
JA
STATE OF KANSAS )
) ss:
COUNTY OF SALINE )
The foregoing Lease Agreement was acknowledged before me thiJlJrt of October,
2007, by Jason Gage, City Manager for the City 0 Sa' a, a e act nd deed of said City.
Et~ NOI~~;P~~~~ ~ta~eLoT~~sas
My Appl. Expires -
My Appointment Will Expire:
4-tyCf1
STATE OF KANSAS)
) ss:
COUNTY OF SALINE )
r,2rd
The foregoing Lease Agreement was acknowledged before me this~ day of October,
2007, by Daniel C. King, President of Eastridge Development, Inc., as the act and deed of said
co)-pbrati6fC'), iFf "
: ~ JANAE CRAMER
;- - Notary Public - State of Kansas
, My App!, Expires I -;). .JO)
My,Appointment Will Expire: \ \- ;;p,..~07
-it
~ 0 ANJ"y-v\. 0 ^ .
N tary Public
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