8.1 Agr Lease Farm Addendum CITY OF SALINA
REOUEST FOR COMMISSION ACTION DATE ' TIME
1/2211990 4:00 P.M.
AGENDA SECTION: Administration ORIGINATING DEPARTMENT: APPROVED FOR ·
.... No.NO'I TEN 81 City~ Attorney B~ AG ·
BY: Greg Bengtson
Resolution Number 90-4159, authorizing the City Manager to execute an addendum
to lease agreement for city owned farm land.
The City owns the section of real estate upon which the landfill is located. That
portion of the Section not currently used by the City for landfill purposes is
leased for agricultural purposes.
Recent law changes have complicated and potentially eliminated-the Cityts
qualification for price support and production adjustment payments. The
proposed addendum calls for an arrangement in which the farm tenant is the
applicant for all subsidies and then pays the City its 40% share. The Salina
Airport Authority has taken the same approach on its agricultural lease. The
addemdum also extends the lease through 1995.
A copy of the proposed addendum is attached.
Recommendation
Staff recommends adoption of Resolution Number 90-4159.
COMMISSION ACTION
MOTION BY SECOND BY
TO:
ADDENDUM TO LEASE AGREEMENT
. This Addendum, made and entered into this day of
.., 19 ., by and between the CITY OF SALINA, KANSAS, a
municipal corporation, herein "City," and QUENTIN L. SWENSON and
DENNIS'D. SWENSON of R.R. #1, Salina, Saline County, Kansas,
herein "Lessees," WITNESSETH:
WHEREAS, the City and the Lessees entered into a certain
Lease Agreement dated July 11, 1977 (the "Lease"), covering the
following described real estate, to wit:
Section Seven (7), Township Fifteen (15) South,
Range Three (3) West of the 6th P.M. in Saline County,
Kansas (except the area uses by the City for water
storage tank and solid waste disposal area as indicated
on the map attached to the original lease marked
Exhibit "A"),
together with the appurtenances thereunto belonging, the
"Premises"; and,
WHEREAS, the LeaSe was modified by Extension Agreements
dated December 19, 1979, and December 31, 1984; and,
WHEREAS, due to changes in federal legislation the City is
unable to participate in Commodity Credit Corporation programs
and to.enable the Lessees to participate the parties mutually
agree to amend the Lease to provide for a cash rental rather than
a crop share rental as provided for in Section (2) (a) of the
Lease.
NOW, THEREFORE, in consideration of the mutual covenants
herein contained, the parties mutually agree:
I. Term of Lease. The Lease Agreement dated July 11, 1977
by and between the parties is hereby extended for an additional
term of five (5) years commencing in the year 1990 and shall
terminate in the year 1995 on the dates and times specified in
paragraph (5) of the original Lease Agreement.
II. Rentals on Cultivated Land. That Section (2), ReDtals,
of the Lease dated July 11, 1977, is hereby amended to read as
follows:
(a). Cultivated Land. Lessees agree to pay the
City as rental for the cultivated land on Premises a
cash rental which shall be equal to 40% of the amount
received by Lessees from the sale of all crops raised
on the Premises during the lease year and 40% of all
government payments received by Lessees which are
applicable to the Premises, less 40% of the cost of
fertilizer and herbicides used in connection with the
production of said crops.
The cash rentals provided for herein shall be due
and payable on or before November 30th of each lease
year; provided, however, that in the event that the
crops grown on the Premises during said lease year have
not been sold or in the event the government payments
applicable thereto have not been received by November
30th, then in that event the additional amounts due
hereunder shall be payable on or before the 10th day of
the month following the month in which said crops were
sold and/or said government payments received.
The City shall have the right to examine, or cause
to be examined, the books and records of the Lessees
for the purpose of determining whether there has been
compliance with the requirements of this paragraph.
The cash rentals provided for herein shall be
effective commencing with the 1990 crop year.
III. Othe~ Terms. All other terms, conditions and
covenants contained in the Lease dated July 11, 1977, as modified
by the Extension Agreements dated December 19, 1979, and December
31, 1984, as amended by this Addendum, are hereby ratified and
affirmed by the parties.
IN WITNESS WHEREOF, the City has caused this Addendum to be
signed by its proper officers and the Lessees have set their
hands hereunto the day and year first above written.
CITY OF SALINA, KANSAS
By
"City"
Quentin Lo Swenson
Dennis D. Swenson
"Lessees"
- 2 -