1974 Lease Agreement s.
LEASE AGREEMENT
This Lease Agreement, made and entered into this 18thday of March
19 74 , by and between THE CITY OF SALINA, KANSAS, a municipal corporation,
hereinafter referred to as the "City" and HOCKING FARMS, INC. , a Kansas
corporation with principal offices and place of business in Saline County,
Kansas, hereinafter referred to as the "lessee" , WITNESSETH:
That the City in consideration of the rents, covenants, agreements and
conditions hereinafter stipulated to be paid, and performed by the Lessee, does
hereby let and lease unto said Lessee the following described premises, to wit:
Section Seven (7) , Township, Fifteen (15) South, Range
Three (3) West of the Sixth Principal Meridian in
Saline County, Kansas, (except the area used by the
City for water storage tank and solid waste disposal
area as indicated on the area map attached hereto,
marked Exhibit "A")
together with -the appurtenances thereunto belonging hereinafter referred to as
the "Premises" .
1 . Term of Lease: To have and to hold the same for and during the
term commencing on the 19th day of June, 1973, and terminating in the year
1977 as specified in paragraph 4 herein.
2. Rental :
a. Cultivated Land: Commencing with the crops to be harvested
in 1974, Lessee agrees to pay City as rental for the cultivated land on the
Premises one-third of all wheat, milo, oats and other grain crops grown and
raised on the premises during the term of this lease and to deliver the City' s
share of all such grain to the elevator mutually agreed upon by Lessee and
City. Giay=agrees=to=pay=Lessee=i-ts=proportionate=share=of=the=ferti'Tizer
fol.lowing=harvesting°of=the=cr-op=on=which=thecferti=1=i;zef-was=used,_andawi.thin
•-30=days=of=the=presentation=of the itemized=bi-l=1=to=the=Gi-ty°for=such=fer-tiiller.
b. Pasture: Commencing with the 1974 grazing season, Lessee agrees
to pay City as rental for all pasture land on the premises the following:
(1 ) . Native Grass: For 122.5 acres of native grass the sum
of Seven Dollars and Fifty Cents ($7.50) per acre based upon 545.00 CWT. Kansas
AC City price for slaughter cattle and calves (steers) , choice 900-1100 lbs. as
a`N,
of November 1st of each lease year. Rental for each year shall be adjusted
plus or minus ten (10) cents per acre for each One Dollar ($1 .00) said cattle
price varies from the $45.00 CWT. as of November 1st of each year. Pasture
rental shall be due and payable on or before November 15th of each lease year.
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(2) . "Go-Back" Grass: For the 88 acres of "go-back" grass
+a shown on the attached map, the sum of Four Dollars and Fifty Cents (4450) per
acre, which said sum shall be subject to the same adjustment as the rental for
the native grass above specified. Payment shall be made on or before November
15th of each year.
c. Effective Date: The effective dates for the crop share rentals
shall commence with all crops harvested after January 1 , 1974, except for 110
acres of land now in wheat, from which the City shall receive their proportionate
1/3 share of 1100 bushels of wheat due to summer fallowing of this acreage.
Pasture rental shall be effective for the 1974 grazing season.
3. Use of Premises: Lessee agrees to use the Premises for grazing and
agricultural purposes only as hereafter specified.
a. Pasture Land: That portion of the Premises which is now in
native or go-back grass may not be cultivated and 'shall be used for grazing
during the normal grazing season only (April 1 - November 1 ) . All fences t ,
now on the Premises shall be kept in good state of repair by Lessee at its •
own expense. City agrees to reimburse Lessee in the sum of $289.8 -for repairs
to fences previously made. Lessee shall graze the pasture land in accordance
with the accepted principles of good pasture management, which for the purpose
of this agreement shall mean that Lessee shall pasture no more than one 600 lb.
or less animal for each 3. 5 acres and no more than one cow and calf :for each
6 acres, or any animal over 600 lbs. no more than 5 acres.
City agrees to furnish all materials and Lessee agrees to furnish all
labor necessary to install a four (4) barb wire fence for 22. 5 acres (waste
area) shown on map. Fence shall become property of City upon installation
and may not be removed by Lessee. (c w. Go.* 4 9 S. r5 PJ iciy)
b. Cultivated Land: Lessee agrees to farm said land in due season
and in a prudent and workmanlike manner and not to allow waste upon said Premises
by virtue of failure to properly protect said land from wind or water erosion.
If any soil conservation management activities are to be initiated, costs for
same shall be the responsibility of the City.
c. Government Agricultural Programs: City agrees that it will coop-
erate with the Lessee in abiding by all terms and conditions of any governmental
agricultural programs which are now in effect or may be applicable during the
terms of this lease , and receive proportionate 1/3 share of such benefits.
4• Possession:: Lessee shall be entitled to possession upon the
execution of this agreement.
Parties agree that upon termination of this lease in the year 1977, that
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Lessee will surrender possession of. said Premises to the City at the following
times: (1 ) A1=l-land-planted-to=wheat_as=soon as_19.17 crop=has-been=har-_vested;
(2) Pasture-land°(native`grass°and=go=back°grass')°on=or=before=November• 1 ,
197.7;d(3) Al_l d cu,l.tiwated-land=upon=which no crops are=growing=on=or_before
August=l:,=1.97.7,;,and (4) A1=1=land=planted=to=other°crops=as=soon=as-crop=has
been°harvested=(excludes harvesting by grazing) but=in=no=event=later=than
February-1.,..1:978..
5. Liability of City: Lessee is aware that the leased Premises were
acquired by City for use as a solid waste disposal area and the land excluded
on Exhibit "A" will presently be used for said purposes. City agrees that it
will operate said solid waste disposal area in a prudent manner, however,
parties realize that trash, paper, etc. may blow from the area onto leased
premises and City shall be under no obligation to remove the same therefrom.
City agrees that it will use due care in regards to burning of solid wastes,
however, parties recognize that fire could spread to leased Premises and
City assume no liability for loss to Lessee resulting from fire, whether caused
by City employee or agents or persons using the solid waste disposal area
and Lessee assume such risk of loss.
6. Easement: City retains the right to enter upon said Premises:
a. To perform any and all necessary maintenance in connection
with its utility lines (water, sewerage, gas) located thereon; or to install
any new lines which may be necessary.
b. To remove, replace, salvage or modify such existing utility
lines and appurtenances.
c. To drain water storage tank located on Premises through fire-
hydrants and existing water lines on the Premises.
7. Termination of Lease: The City reserves the right to terminate
this lease as all or any portion of the Premises in the event said Premises
or any portion thereof are needed by City for solid waste disposal , industrial ,
other municipal purposes or for the use of any other political subdivision. In
the event the City desires to terminate said lease as to all or any portion of
the Premises, then the City shall give the Lessee sixty days written notice
of its intention to do so and shall describe the portion of the Premises
affected thereby. In the event said lease is cancelled as to all or any por-
tion of said Premises, then the City agrees to reimburse Lessee for any
growing crops on Premises for which the lease is cancelled and the cash rent
for pasture land for said year and the remainder of lease period-shall be
proportionately reduced. In no event can this lease be terminated for reasons
other than those stated above.
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8. Taxes: City agrees to pay any real estate taxes which may be
levied against said premises during the term of this lease.
9. Liability Insurance: Lessee agrees to secure and maintain, at his
expense, in full force and effect until. the completion of this lease, such
liability insurance for the operations of himself, his agents, and his
employees which may arise from conditions of this lease. Such insurance
shall be written by a reliable insurance company authorized to do business
within the State of Kansas, in an amount of at least $300,000 Single Limit
Bodily Injury and Property Damage. The Lessee shall deliver to the City a
Certificate of such Insurance.
10. Ownership of Fixtures: It is understood and agreed by and between
the parties hereto that any additions, improvements or fixtures attached to
the Premises or placed on or about said Premises by Lessee shall be considered
as personal property and shall remain the property of Lessee who shall have
the right to remove the same from the Premises upon the expiration of this
lease so long as such removal does not impair the structural feature.'of the
improvements presently on the leased Premises. Provided, however, in the
event of termination of this lease due to a breach of covenant by the Lessee,
then all fixtures and improvements shall become the property of the City and
may not be removed from the Premises.
11 . Waiver: Waiver by the City of any breach of this Lease shall not
be construed as a continuing waiver of a subsequent breach nor imply further
indulgence.
12. Breach of Lease: In the event said Lessee shall fail to comply
with any substantial term, condition or covenant of this lease within ten
days after written notice so to do has been mailed to it by said City, or in
the event said Lessee abandons said Premises before the end of the term, or in
the event said Lessee is adjudged bankrupt or insolvent or makes an assign-
ment for the benefit of creditors or commits any act of bankruptcy, any of
such events shall be deemed an immediate breach and forfeiture of this lease
and all unpaid installments or rent and other expenses herein provided for
shall immediately become due and payable.
13. Liens: Lessee shall pay, satisfy and discharge all liens and
obligations of any nature and kind whatsoever created by or the obligations of
the Lessee which shall attach to or be imposed upon said Premises and shall
indemnify, save and hold harmless said City from such payment and from all
damages and expenses attendant thereto.
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14. Assignment of Lease: Lessee shall not assign this lease or any
interest therein and shall not sublet the Premises or any part thereof, or
allow any person to occupy or use said Premises or any portion thereof,
without the prior written consent of the City. A consent to one assignment or
subletting for use by any other person shall not be deemed to be a consent to
any subsequent assignment.
15. Inspection of Premises: Lessee agrees that the City or its agents,
may at all reasonable times have free access to said demised Premises and
. buildings thereon for the purpose of examining or inspecting the condition of
the same or exercising any right or power reserved to the City under the terms
and provisions of this agreement. •
16. Notices: All notice to be given pursuant to this lease shall
be addressed to the City of Salina, 300 W. Ash, Salina, Kansas 6740,1 , and to
the Lessee at Salina, Kansas 67401 , or as may from time to time be directed
by the parties. Notice shall be deemed to have been duly given if and when
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enclosed in a properly sealed envelope or wrapper addressed as aforesaid and
mailed by registered or certified mail with postage prepaid.
17. General Clauses:
a. Lessee shall comply with all applicable laws, ordinances and
regulations of the state, county and municipality wherein the same demised
Premises are located with regards to construction, sanitation, licenses or
permits to do business and all other matters. '
b. Lessee will not permit any person to hunt upon said Premises.
c. That any property of the City damaged or destroyed as result
of the actionable negligence of the Lessee, incident the Lessee' s use and
occupancy of the Premises shall be compensable in damages to the satisfaction
of said City or in lieu of such repair or replacement, the Lessee shall , if
so required by said City pay to the City money in an amount sufficient to
compensate for the loss sustained by the City by reason of damage or destruction
of said property.
d. In the event the Lessee fails or neglects to procure the
insurance required by this lease or to pay the premiums thereon or to properly
maintain and keep in force said insurance, the City shall have the right and
privilege to procure such insurance and to pay the premiums thereon and any
premiums paid shall be deemed as additional rental and shall be due and
payable with the next installment of rent due hereunder.
e. Lessee acknowledges that it has inspected and knows the condition
of the leased property and it is understood that the same is hereby leased
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without any representation or warranty by- the City whatsoever and without
obligation on the part of the City to make any alterations, repairs or additions
thereto. .
f. No Lessee shall use or permit to be used any portion of the
property under its control for signs, billboards or displays, other than
those connected with its own operations thereon.
g. Lessee shall not be the agent of, the City in making repairs
or other improvements to the above Premises and no mechanics liens or claims
thereunder shall be valid against the City or against the interest of the
City in said property.
h. The Lessee must at all times keep the leased Premises in a
safe, clean, wholesome condition, and comply in all respects to all government,
health and police requirements. Lessee will remove at its own expense any
rubbish which may accumulate on said property incident to Lessee's use and
occupancy of the Premises.
This agreement shall be binding upon the heirs , executors, administrators,
successors and assigns of the respective parties to this agreement.
IN WITNESS WHEREOF, the respective parties have hereunto caused this
instrument to be executed on its behalf by its duly authorized officers all
on the date and year first above mentioned.
CITY OF SALINA, NSAS
BYO rh( --(/ ' 1 !
` Mayor
ATTEST -- -. _. -
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TTESTi ,
A`a ! ci4 vs o •1
City Clerk
HOCKING FARMS, INC.
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By President
,
ATTEST: .
Secretary
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