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2009-2012 Farm Lease Agreement LEASE AGREEMENT This Lease Agreement, made and entered into this ~ day of July, 2009, by and between CITY OF SALINA, KANSAS, a municipal corporation, hereinafter referred to as "City", and ALVIN FARRIS, Salina, Kansas, 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 Lessee the following described and depicted real estate: See attached "Exhibit A" and "Exhibit B"; 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: 1. Term of Lease. The term ofthis agreement shall be for a period of three years (3) years which shall commence on the 1st day of August, 2009, and shall terminate on the 31st day of July, 2012, subject to early termination as described below, and subject to the right of Lessee to harvest any crops that are growing on the date this Lease terminates. 2. Early Termination. The City reserves the right to terminate this Agreement early on all or any portion of the Premises from the terms ofthis Agreement upon a determination by the City Commission of the City of Salina, that the Premises will be used other than for agricultural purposes. If such a determination is made by the City Commission, written notice shall be delivered to the Lessee describing specifically the portion of the Premises affected by said termination notice. Lessee agrees to surrender possession ofthe 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 cash rental of $11 ,040 (calculated by multiplying' $80.24 per acre per year times the number of acres constituting the Premises over three years). The cash rental provided for herein shall be due and payable in six equal installments each in the amount of $1,840 due according to the following schedule: . August 1,2009: $1,840 . February 1, 2010: $1,840 . August 1,2010: $1,840 . February 1, 2011: $1,840 . August 1,2011: $1,840; and . February 1,2012: $1,840 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 oflaw. 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. Quiet Enioyment. 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 by Lessee. Lessee covenants to farm and care for the Premises in a good and workmanlike manner 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 ofthe City. 9. Fertilizer and Weed Control. In addition to the rental stated in paragraph 3 hereof, Lessee agr.ees 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 lexpense. 10. Seed. Labor. Machinery 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. -2- 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. 14. 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. 15. 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. 16. 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, ho~ever, all taxes on or measured by Lessee's income. When the Premises are in Lessee's posse~sion, 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. 17. Liability 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. 18. Indemnification. Lessee shall hold harmless and indemnify tpe City against all liability, loss, damage, expense, and judgment relating to Lessee's use of the .fremises, including but not limited to any damage, neglect, or misadventure arising from or in any tay growing out of the use, misuse, or abuse of the Premises, or any failure of Lessee to comply ~th 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. -3- 19. 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. 20. 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 contrac~ed by Lessee. 21. Improvements. Lessee shall not make any alterations or additipns to the Premises unless otherwise approved in writing by the City in advance of the proposed alteration or addition. 22. Merger Clause. The parties intend these terms to be a complete, conclusive and final expression of all the conditions of their agreement. No other prdmises, 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. 23. 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. 24. 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 deemeq an original, or in multiple originals, and all such counterparts or originals shall for all purp<i>ses constitute one I agreement. 25. Severability 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 ofthis Agreement to be contrary to law, the remaining provisions of this Agreement shall remain in full force and effect. 26. Notice. Service of all notices under this Lease shall be sufficien~ 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 timei to time. Any such notice mailed to such address shall be effective when deposited in the Unite~ 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 ATTN: City Manager 300 W. Ash, P.O. Box 736 Salina, KS 67402-0736 Alvin Farris 436 N. Holmes Rd.. Salina, KS 67401 -4- 27. 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 ~1&~er 4.;~ ALVIN FARRIS STATE OF KANSAS ) ) ss: COUNTY OF SALINE ) The foregoing Lease Agreement was acknowledged before me thl~ c!lC>th day of {],. -r~-~~ ,2009, by Jason Gage, City Manager for the City of SaFna, as the act and ~ity. ~~ 1.. UJ4- ~ Public J SHANDI L leKS My Appointment Will Expire: '1/:;::1 ~/L Notary Public - Stat of Kansas My Appt Expires STATE OF KANSAS) ) ss: COUNTY OF SALINE ) The foregoing Lease Agreement was J;.(:> , 2009, by Alvin Farris. , me his II-I'M day of Notary Public My Appointment Will Expire: B- J 3- 13 A . NlJfMlV P Bue - - of Kansas ~ Mel ssa L. Rose My Appt. Expires:2 -P3-13 -5- DEPARTMENT OF PUBLIC WORKS Michael Fraser, Director of Public Works Daniel Stack,RE., City Engineer Jim Teutsch, Operations Manager CIlyof ~ Salina TELEPHONE . (785) 309-5725 FAX . (785) 309-5713 TOO. (785) 309-5747 E-MAIL: mike.fraser@salina.org dan.stack@salina.org iim. teutsch@salina.org WEBSITE . www.salina-ks.gov 300 West Ash . P.O. Box 736 Salina, Kansas 67402-0736 July 2, 2009 Mr. Dennis Debold 2051 Page Avenue Salina, KS 67401 Mr. Alvin Farris 436 N Holmes Salina, KS 67401 Dr. Daniel King Eastridge Rental Corporation 1190 Columbine Circle Salina, KS 67401 Mr. Roger Mattison Mattison Farms 4369 E. Campbell Road New Cambria, KS 67470-8509 Subject: 2009-2012 Marymount Farm Lease Bid Dear I nterested Bidders, I would like to thank all of you for your interest in the Farm Lease Contract for North Marymount Road for the term of August 1,2009 through July 31,2012. There were three bids submitted for the lease and the bid results are attached to this letter. The highest bidder was Alvin Farris who bid $11,040 for the three year agreement. This contract will be placed on the City Commission agenda this month for their approval. If you have any questions, please let me know. Thank you. Sincerely, Xc: Jason Gage, City Manager Daniel Stack, City Engineer Greg Bengtson, City Counsel Jared Johnson, City Counsel Lieu Ann Elsey, City Clerk OUf Mission is to Build and Maintain a Clean, Safe Community Quotation Form Farm Land Lease on North Marymount Road, Legally Described and Depicted on Exhibit A Attached hereto Term: August 1,2009 - July 31,2012 (3 year contract) I do hereby submit the bid for a land lease of farm ground owned by the City of Salina located on North Marymount Road. My bid is for Tract No.1, Tract No.2. and Tract No.3. I agree to pay the City of Salina the following amount for a three (3) year contract, subject to termination pursuant to the terms of a written lease. Half of the yearly payments of the contract amount will be due the City of Salina in accordance with the following schedule: Half of the yearly payment is due on August 1, 2009, and second haif payment due on February 1, 2010. Payments are due on August 1 and February 1 for subsequent years. All Tracts are bid toaether Tract No.1 (approximately 19.87 acres), plus Tract No.2 (approximately .02 acres), plus Tract No.3 (approximately 25.97 acres) Three Year Bid Amount ,10 $ I ~()LjIJ '!--' Phone Number: /fr,:rv h~r</j~ -9' J ~ /1./ /../d //J1 C' S . 7tf'j- ?',2,) -CJ9/Z- /<.?J Name: Address: Email Address: Date: c{ - ~2tJ ,- 07 Signature: ~Yl! ~~ , This form is to be return to the Salina Public Works Department no later than 5:00 PM on Monday, July 1, 2009 Our Mission is to Build and Maintain a Clean, Safe Community Quotation Form Farm Land Lease on North Marymount Road, Legally Described and Depicted on Exhibit A Attached hereto Term: August 1,2009 - July 31,2012 (3 year contract) I do hereby submit the bid for a land lease of farm ground owned by the City of Salina located on North Marymount Road. My bid is for Tract No.1, Tract No.2. and Tract No.3. I agree to pay the City of Salina the following amount for a three (3) year contract, subject to termination pursuant to the terms of a written lease. Half of the yearly payments of the contract amount will be due the City of Salina in accordance with the following schedule: Half of the yearly payment is due on August 1, 2009, and second half payment due on February 1, 2010. Payments are due on August 1 and February 1 for subsequent years. All Tracts are bid toaether Tract No.1 (approximately 19.87 acres), plus Tract No.2 (approximately .02 acres), plus Tract No.3 (approximately 25.97 acres) Three Year Bid Amount 00 $ '7b 35- Name: ( A ~ T R, 0 <:;. Co Q 6- V G'1. (} P w.. Ii III 'I ~ iY\ f r Address: t \ ~ 0 ~ c L u.. /J1 g J 81:.. (C i (L~ J....e.. Phone Number: 1 'i? 5"';' '?;). '1 q l 3!{ Email Address: Date: 1.0 /~6 /09 I / Signature: aes. This form is to be return to the Salina Public Works Department no later than 5:00 PM on Monday, July 1, 2009 OUf Mission is to Build and Maintain a Clean, Safe Community Quotation Form Farm Land Lease on North Marymount Road, Legally Described and Depicted on Exhibit A Attached hereto Term: August 1, 2009 - July 31, 2012 (3 year contract) I do hereby submit the bid for a land lease of farm ground owned by the City of Salina located on North Marymount Road. My bid is for Tract No.1, Tract No.2. and Tract No. 3.1 agree to pay the City of Salina the following amount for a three (3) year contract, subject to termination pursuant to the terms of a written lease. Half of the yearly payments of the contract amount will be due the City of Salina in accordance with the following schedule: Half of the yearly payment is due on August 1, 2009, and second half payment due on February 1, 2010. Payments are due on August 1 and February 1 for subsequent years. All Tracts are bid toaether Tract No.1 (approximately 19.87 acres), plus Tract No.2 (approximately .02 acres), plus Tract No.3 (approximately 25.97 acres) Three Year Bid Amount f2.2-. $~ g'7( Name: ,fL"A~<<? ,llJeJ) Address: ci'~. 5/ /7e. ~-l-IJL' c.. Phone Number: /7tl5- &17- /(J 77 Email Address: H- (J....L ~4'" - '&tl5 - .177 tJ Date: 6 - rP7- 0:7 Signature: ~~W~~ JiJd)- J' This form is to be return to the Salina Public Works Department no later than 5:00 PM on Monday, July 1, 2009 Our Mission is to Build and Maintain a Clean, Safe Community EXlIIBrr A LEGAL DUCRIPl'lQN 1 ~ A fCllsimplc iriiercst in" t$ct ~f .IaIk1inLee.ID~.Park..~Jt~ th,o platthcrcofn:coRicd in the of6ce ot~ ll,e~ot.l)eeds.o.tSehe~t ~ on Aprill. 1964..iJ1 boo.k A-3 of 'Pt.Natpago 36, lymi South and Westof~City of$a1\DaPlood CQDtJol ~of\Q,y,; ~ed in tbcSoudlHUf(sa)ofthc~~ ~W4j of$~ion Six (6)1 TowDship~ourtca:J!(l4) South.:ltliaic Two (2) West of1he d'- P.M'. in,Salinc Couaty.:K.aDsu..and IIlOfC prarIiQUlarty desc,ibed as toUOWll: BcgiJu1ing.~BOI4h~'QO,mCrot~~~ 'I'bcnco NOrtbcJly :aJmtgiJtc East Uaeoisaid Southeast .~, OQ au 1IS,SUQ1Od'bearlng of N 'OO"lS~Ol"W~.dil~ of.m~5~'f~;. ~,S.39.44.'S9" W.alongtbO:SouthliDe of said F1oodConfn>J right otway liDC. a diStance of 233.28 feet' 1'hc:nccN i4"24'23"W~alqaaidrilhtorway line, a ~or305..81 feet toa p61Dt on the uJ,stirig southerly UiliQu ~&1W1ioad riBht Of w:ty line; ~e:S68'20?28"W.aJongsaidright of way lioc. . distance of872.12 feet; The:uQe Soutbeastttly along a 6S8.16-.fcot~ DOn-1aflgaI.t CW"VCw the right. 8Ili arc leagth of 821.82 r~' ~ baviDg a.c:hotd which bem S 3..v'37'~" ~ a dista'oce 0(71432 ~ ThCl'lCC S ()'1"74.U"W.ildistanceOf98.S1 feet:; . Thcoco SO?D4<<i'Ol't W. a distaaoeiof123.41 fed to a point Ott South _ of.sai4 ~~ Quarter; ~ ~8"8'14" B, aloog said South liDc, a distance of1S3.25 feet to ffusPOJNT OP BEGINNING. Said'~~ J9~87 at;:n=I. more or 1cs$i including existing '* right ofway. AND 2. Afec simpleWtcrest in.a tract'6fland in Lcol'ndustrial ~ accordiDgto~plat~ftDeOrdCd m,UleQMce'oftboRcgiittet ot~of~:CoUDl.ytKmsas. on Aprlt 1,1964. in BookA-3 of Plab at Page 36, lybig.SOuth 8Dd w~ of tho City ofSaliDa Flood Comtol right ofVllY. situated in the South Half(SI2) ofthcS~ Quatter(SE/4)ofScc1ionSix (6); TowJiship FourtecD(14} South. bngc 'lWo (2) West ofdle 6fA P.M. in. saHJico,O:Nr:ary, Kansas. andmorc particularly ~ix:das follows: .~ atthcSoqtheastcoma' o~sa1d SOutheast Q.uarta;. ~N~r,aIon&1be ~:liaC ofsakl.Soutbeasl Quarter. on an assumed ~ofN OO"'lS'Ol."W. a~of8~.s9 teet: . Thence S89"44'S9"W. alongtbe South liDeotsaid.Ftood Conrrol right otway lhJ.e. adiltaDCO of 233.2! feet~ Thetic:eN 24~4'23" W. wemg said righto!~ylmc,a distance of30S.81 feet to a point on the cxistiD:g southcdy UmonPacif:ic.R.ailroad right otway line; 'I'I1eDec'S 63*20'28" W, aloog$lWi right ofwaylino.. distance: of 10Z7.93' feet; Tbencc NOO"l:!'46'"W. aloogsaid ript ofway line, a ~ of 90.61 fexit to the Point of B . . .~ '~Nr;iO"l"46" w, a1Oagsaidrigbt.ofway Ji~, a dist.anco of'27.56fcet; ~$6$"20.28"'W, alongwd,rlghtofway~.diStanCeof'64.07.fccl.; . ~.Sou~ly_ga,~S~J~f~nidii.isnon.~ curvcfo ~nght,ltIl aN kttgtb,Cif . $9.81f'c>>taad ~ a ~bOflhv1:ikh be:ar$ S 86'15'06" E, 8, distanCC!ofS9;79.!e.!Jt.to.1hic POlNT O~'l3EGINNlNG; . Said Uactamtaim OJ)2 acres. (794 aqume feet), more or less, ". ~.. ........... !,.... ~ . ._. 4 _. ,_ .........__........ 3. The East B30 !7eel of The Lee Industrl~l Park, according to the plat thereof recorded in the office of the Reg!ster' of Deeds of Saline County, Kansas, on April 1, 19S4, in .Book A-3 of Plats at PatJe 36. Iyirtg In the NortheaSt Quarter (NE ~) and the Eatt Half (E YaJ oflh~ NQrthwestQuartcr (NW %) of S~tion Seven (7), Township Fourteen (14) South. Range Two {~)West of tb. (f',P.M., In Saline County, Kansas, whleh tract is more partleular:ly d~ri~ .$ follows. Beginning ala stone found. at the N % cO'mlir of ~aij:i $.eellon 7: therlce westerly alon,gthe northllf1e'ofth..HW,. ~.:of Said ,S(fctlClI18 :dl$tance.Of 210',$ fool toapoint.on th~ ~ line' Of. the. Missouri Pacme Ralli"o~d right;,.of~ay; thei'lcOso~hw.sterly along the aas, ~' Itne of:t~ MI$$.ourl~f1t; ~Iro-.d~ 1I ~i$tance ~ 315.~ feet; then~ $<<rther~y along.tho- cast .RMilin,of the MiSsouri' P~~..R.~road a distal"lGe of'1~022.32 f8eJ to' a point on the south line of the HE %. of lhe NW "A of $aid aecUo" 7; thence westerly along the south IIno of the NE '/& of thq NW % of saidSectlon 7.,a <l1~ance.of 33.0 feet: ttien~ south~y along the ea$t RNlllne .of the Missouri Pacific RaJtroad ad~ance of 14~4 (e~t to' a point on the curve of the . north .RIW line of the main line of the ME$$oun Pacific Railroad;tt}ence northeasterly along the arc of a curve haVing a I'l'diU$ of 2,914.93 feet, .said arc bting the non" RJW .line of the MISSouri PaClflc'Raflroad maIn' line."a di$bmce Of 289.0 feet; then<::e easterly along, the north RIW Unec>fthe Missouri Pacific Railroad main linea dl!!1tance'of 2,677.8 feet to illl pOint Qn the. ~ast .lIn..~ the N E % Of said Section 1; thence northerly along the east line of the Ne V,. Of Section 1 a di$lnCCllof 1,346.66 feet mote or les. to the northeast comer of said Section 1; thcn~ W8$lerly ~long,Ute north line of said Section 7 to the point of beginning; INCLUDING ONLY THE: EAST 830 FEET THEREOF; said tract containing 25.97 acres more or less. Subject to ~ervatlon of all mineral rights In and un,de.. the above .scribe real estate byDanlelC. King and Ntlncy L. King, huabanl;J and wife, their heirs, elteCutors, and :anIons, i!,.d.the dghtto entei'sald real 8$.;d.e for the purpose of extraetion of an oil, ~ and 6th... mhlera18, on. In. and under -said real eState us $et forth in Coirectiv. Qu~ Claim v..e.d from Daniel C. King et al.. to Eastridge Development, Inc., date<J' Jarjuary 1.199:7. and recOrc:led in Deed Book 3&.0. at pages ~9 and afr existing rall-roadease,rnents and/orright-Qf-way, NOTE: See attached aerial drawing loaItitl1J the above leased ground. (LeaSed ground Is referred to as. Tracts 1. 2; and 3, reSpectively) Ati Ie_eel gtound, Ineluding tracts 1 through 3 above, Is subject t~ existing raU-roadea$cments and/or tighl-of- way.