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2012-2015 Farm Lease Agreement (Tract 1-3) LEASE AGREEMENT This Lease Agreement, made and entered into this 215 day of June, 2012, by and between CITY OF SALINA, KANSAS, a municipal corporation, hereinafter referred to as "City", and ALVIN A. FARRIS, 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 of this agreement shall be for a period of thirty-six (36) months which shall commence on the 1 st day of August, 2012, and shall terminate on the 31st day of July, 2015, 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 of this 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 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$4,156.66, beginning on August 1, 2012. The cash rental provided for herein shall be due and payable semi-annually, with $2,078.33 payable on or before August 1St and $2,078.33 payable on or before February 1St of each year during the term of the Agreement, and according to the following payment schedule: August 1, 2012 $2,078.33 February 1, 2013 $2,078.33 August 1, 2013 $2,078.33 February 1, 2014 $2,078.33 August 1, 2014 $2,078.33 February 1, 2015 $2,078.33 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. Quiet Enjoyment. 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 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, 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. 11. Hunting. Lessee shall not permit any person to hunt upon the.Premises. -2- 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 procure and maintain commercial general liability insurance covering its use and operations of the Premises which policy shall name City as an additional insured thereunder, with limits of not less than $1,000,000.00 for claims of bodily injury, death, property damage, and personal injury which could be asserted against any one or more of such parties for any number of claims arising out of a single occurrence or accident on the Premises. Upon request Lessee shall provide the Landlord with proof 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, 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. 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 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. 19. Expenses by City or Lessee. If either party is in default of this Agreement, the defaulting party shall pay all costs and expenses incurred by the non-defaulting party in exercising any of its rights or remedies hereunder or enforcing any of the terms, conditions or provisions of this Agreement. -3- 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. This Lease shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives s, 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. 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 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 Alvin A. Farris ATTN: City Manager 436 N. Holmes 300 W. Ash,P.O. Box 736 Salina, KS 67401 Salina, KS 67402-0736 -4- 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 By t JAS GAGE, City M fn ALVIN A. FARRIS STATE OF KANSAS ) ss: COUNTY OF SALINE ) The foregoing Lease Agreement was acknowledged before me this Sf day of June, 20-12;-by-Jason Gage;City-Manager;for the City o Salina, as-the act and deed of said City. LIEU ANN ELSEY Notary Public-State of Kansas My Appt. E pires - Notary Public My Appointment Will Expire: 4'"i u—i 5 STATE OF KANSAS ) ss: COUNTY OF SALINE ) The foregoing Lease Agreement was acknowledged before me this day of June, 2012, CATHY BOLL Notary Publ�`State of Kansas rAMyppt.Expires 2Q" Notary Public My Appointment Will Expire: -5- �v EXHIBIT A t w. EXHIBIT A LEGAL DESCRIPTION 1• A fee simple interest in a tract of land in Lee Industrial Park,according to the plat thereof recorded in the office of the Register of Deeds of Saline County,Kansas,on April 1, 1964,in Book A-3 of Plats at Page 36,lying South and West of the City of Salina Flood Control right of way,situated in the South Half(S/2)of the Southeast Quarter(SF/4)of Section Six(6),Township Fourteen(14) South,Range Two(2)West of the 6*P.M.in Saline County,Kansas,and more particularly described as follows: Beginning at the Southeast corner of said Southeast Quarter; Thence Northerly along the East line of said Southeast Quarter,on an assumed bearing of N 00°15'01"W,a distance of 897.59 feet; Thence S 89°44'59"W,along the South line of said Flood Control right of way line,a distance of 233.28 feet; Thence N 24024'23"W,along said right of way line,a distance of 305.81 feet to a point on the existing southerly Union Pacific Railroad right of way line; Thence S 68120'28"W,along said right of way line,a distance of 872.12 feet; Thence Southeasterly along a 658.16-foot radius non-tangent curve to the right,an are length of 827.82 feet and having a chord which bears S 34°37'32"E,a distance of 774.32 feet; Thence S 01024'26"W,a distance of 98.51 feet; Thence S 07°46'01"W,a distance of 123.41 feet to a point on South line of said Southeast Quarter; Thence N 89138'14"E,along said South line,a distance of 753.25 feet to the POINT OF BEGINNING. Said tract contains 19.87 acres,more or less,including existing road right of way. AND 2• A fee simple interest in a tract of land in Lee Industrial Park,according to the plat thereof recorded in the office of the Register of Deeds of Saline County,Kansas,on April 1, 1964,in Book A-3 of Plats at Page 36,lying South and West of the City of Salina Flood Control right of way,situated in the South Half(S/2)of the Southeast Quarter(SEA)of Section Six(6),Township Fourteen(14) South,Range Two(2)West of the 6m P.M.in Saline County,Kansas,and more particularly described as follows: Commencing at the Southeast corner of said Southeast Quarter, Thence Northerly along the East line of said Southeast Quarter,on an assumed bearing of N 00°15'01"W,a distance of 897.59 feet; Thence S 89°44'59"W,along the South line of said Flood Control right of way line,a distance of 233.28 feet; Thence N 24024'23"W,along said right of way line,a distance of 305.81 feet to a point on the existing southerly Union Pacific Railroad right of way line; Thence S 68°20'28"W,along said right of way line,a distance of 1027.93 feet; Thence N 00°13'46"W,along said right of way line,a distance of 90.61 feet to the Point of Beginning; Thence N 00°13'46"W,along said right of way line,a distance of 27.56 feet; Thence S 68"20'28"W,along said right of way line,a distance of 64.07 feet; Thence Southeasterly along a 658.16-foot radius non-tangent curve to the right,an arc length of 59.81 feet and having a chord which bears S 86 015'06"E,a distance of 59.79 feet to the POINT OF BEGINNING; Said tract contains 0.02 acres,(794 square feet),more or less. 3• The East 830 Feet of The Lee Industrial Park, according to the plat thereof recorded in the office of the Register of Deeds of Saline County, Kansas, on April 1, 1964, in Book A-3 of Plats at Page 36, lying in the Northeast Quarter(NE %) and the East Half (E %) of the Northwest Quarter (NW %) of Section Seven (7), Township Fourteen (14) South, Range Two (2) West of the 6th P.M., in Saline County, Kansas, which tract is more particularly described as follows: Beginning at a stone found at the N % corner of said Section 7; thence westerly along the north line of the NW 1/4 of said Section a distance of 210.9 feet to a point on the east line of the Missouri Pacific Railroad right-of-way; thence southwesterly along the east R/W line of the Missouri Pacific Railroad, a distance of 315.0 feet; thence southerly along the east R/W line of the Missouri Pacific Railroad a distance of 1,022.32 feet to a point on the south line of the NE 114 of the NW % of said Section 7; thence westerly along the south line of the NE '/4 of the NW '/4 of said Section 7 a distance of 33.0 feet; thence southerly along the east R/W line of the Missouri Pacific Railroad a distance of 74.4 feet to a point on the curve of the north R/W line of the main line of the Missouri Pacific Railroad; thence northeasterly along the arc of a curve having a radius of 2,914.93 feet, said arc being the north R/W line of the Missouri Pacific Railroad main line a distance of 289.0 feet; thence easterly along the north R/W line of the Missouri Pacific Railroad main line a distance of 2,677.8 feet to a point on the east line of the NE %of said Section 7; thence northerly along the east line of the NE %of Section 7 a distance of 1,346.66 feet more or less to the northeast corner of said Section 7; thence westerly along the 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 reservation of all mineral rights in and under the above describe real estate by Daniel C. King and Nancy L. King, husband and wife,their heirs,executors, and assigns, and the right to enter said real estate for the purpose of extraction of all oil, gas and other minerals, on, in, and under said real estate as set forth in Corrective Quit Claim Deed from Daniel C. King et al., to Eastridge Development, Inc., dated January 1, 1997, and recorded in Deed Book 380, at pages 48-49 and all existing rail-road easements and/or right-of-way. NOTE: See attached aerial drawing locating the above leased ground. (Leased ground is referred to as Tracts 1, 2, and 3, respectively) All leased ground, including tracts 1 through 3 above, is subject to existing rail-road easements and/or right-of- way. EXHIBIT B rYi� .. 4 S -:4 _ �� _ _- -- _ ��1 f. 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