6.1 Consideration of Tillberg LeaseCITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
11/14/2022 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO: 6
BY:Sv
ITEM City Manager FINAL APPROVAL
NO: 1
Page 1 BY: Shawn Henessee BY:
ITEM:
Consider renewal of land lease for property located approximately at Section Thirty (30), Township
Fourteen (14) South, Range (2) West in Saline County Kansas and bounded by the old and new
channels of the Smoky Hill River.
BACKGROUND:
The City of Salina initiated a number of flood control improvements in 1958. These improvements
included rerouting and straightening the river channel. As part of this process, the City acquired a 17
acre triangle shaped parcel of land located adjacent to and southwest of the current Great Life golf
course via Ordinance 6208 in anticipation of utilizing the property for flood control work including
straightening a meander in the Smoky Hill River (see attachments). It was necessary to acquire flood
right of way through eminent domain for this parcel.
The property lies within the floodplain and has limited access from adjoining privately owned properties
which severely limits ancillary use of the property. The parcel in question lies approximately ''/z mile
north of Magnolia Road and approximately '/2 mile West of Markley Road. (see attached map)
Currently, there is no dedicated direct access to the property. Access is precluded by the river on the
west and is challenged by topography on the north with likely access coming from the adjoining
properties on the east and south which are owned by Pestinger Enterprises and David and Cheryl
Tillberg respectively.
This property has been leased since 1965 on an annual basis to Arnold Tillberg for $70 per year. This
lease was first entered into by Mr. Tillberg and the City of Salina on February 1st, 1965. There have
been no adjustments to the rental rate since initiation of the lease in 1965. Accounting for inflation,
$70.00 in 1965 is the equivalent of $662.75 currently in 2022.
On January 1st, 2022, Tom Pestinger submitted a request on behalf of Great Life to the City Manager
and City Commissioners to purchase the property. Mr. Pestinger was interested in purchasing the
property in order to grow sod for the adjoining golf course that he has an ownership interest in.
Mr. Pestinger currently has vested water rights in 2 wells on the property and a river water right. These
water rights are valid and in force with the state of Kansas. The Kansas Division of Water Resources
(KDWR) has examined their records in regards to these water rights and confirmed their validity. The
KDWR did locate a letter in their records dated 07/10/1958 that referenced giving these water rights
to the Elks Country Club due to the diversion of the river channel affecting their access to water. A
copy of this letter requested under an Open Records request was received and is attached.
The Elks Country Club eventually transitioned to the Great Life Golf Course and this is how Mr.
Pestinger was able to use to acquire water rights on the parcel at hand since the golf course is now
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
11/14/2022 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO:
BY:
ITEM City Manager FINAL APPROVAL:
NO:
Page 2 BY: Shawn Henessee BY:
owned by Pestinger Enterprises LLC. The entrance to Great Life, clubhouse and pool are all located
within the city limits, while the golf course itself lies outside of the city limits.
The lease with Mr. Tillberg does not establish a termination date and the lease continues on an annual
basis unless or until one of the parties terminates the lease. In order to terminate the lease, either
party must provide written notice of termination at least 60 days prior to commencement of a new
annual lease. This leasehold interest does not allow Mr. Tillberg to sub -lease the property and restricts
use of the property to farming. Mr. Tillberg has paid his current 2022 lease amount and maintains a
leasehold interest in the property until 2-1-2023. If the City wishes to terminate the lease it must
provide Mr. Tillberg with 60 days' notice. The lease renews annually and could be terminated in any
given year provided that proper notice is provided in advance.
This item was initially considered by the city Commission on April 21St, 2022. Mr. Tillberg, Cheryl
Murray/Tillberg and Tom Pestinger were in attendance at this meeting. All of these individuals
requested time to coordinate amongst themselves and that they would advise the City of their interests
and intentions. At this time, Mr. Pestinger is not interested in leasing the parcel. Mr. Tillberg remains
interested in continuing to farm the parcel.
FISCAL NOTE:
The City currently receives $70 a year for lease of the property. Any modification to the lease amount
would be the sum of the fiscal impact. In the event that the property is not leased by an adjoining
property owner, the City might have to make further access arrangements as well as pay for property
maintenance.
COMMISSION ACTION OR RECOMMENDED ACTION:
Staff has identified the following options for the City Commission's consideration:
1.) The lease could be allowed to automatically renew at its current lease rate.
2.) The City Commission could initiate termination of the existing lease and propose a new lease
rate to be offered to Mr. Tillberg.
3.) The City Commission may instruct staff to provide notice of termination of the current lease and
conduct and open solicitation to lease the property from adjoining property owners with
sufficient private access to the property.
Due to the limited access to the property; taking in to account the mutual benefit realized by the City
of avoiding maintenance expense in the event that maintenance by the City or a third party becomes
necessary and based upon the feedback received from the adjoining property owners, staff
recommends Option #1 allowing the lease to continue to automatically renew at its current lease rate.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
11/14/2022 4:00 P.M.
AGENDA SECTION
NO:
ORIGINATING DEPARTMENT:
City Manager
FISCAL APPROVAL:
BY:
ITEM
FINAL APPROVAL:
NO:
Page 3
BY: Shawn Henessee
BY:
Attachments: Aerial Overview, Elk Country Club Water Rights Letter, Site Map With Parcels and Water
Rights, Tillberg Lease Agreement
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I L S O N
COMPANY
ENGINEERS
ARCHITECTS
Chief Engineer
Division of Water Resources
State Board of Agriculture
State Office Building
Topeka, Kansas
Gentlemen:
P. O. BOX 28
SALINA, KANSAS
10 July 1958
Re: Elks Country Club
Salina, Kansas
158-62B
631 E. CRAWFORD AVE
TELEPHONE
TAYWR 7-4607
We are enclosing two copies of an Application for Permit to appropriate
water for beneficial use, accompanied by the required $10.00 filing fee.
This application will take the place of Application No. 3502, in the
name of Northview Country Club, and under which the Country Club has been
operating since 5 February 1955.
As you may know, the City of Salina and the Corps of Engineers have
undertaken certain flood control measures in this locality, and have thereby
deprived the Club of the original source of water and the point of diversion.
As reimbursement therefor, the City has permitted the Club to develop a new
source of water supply from ground water on property adjacent to the Club
to which the City has obtained title.
The original source of water (from the Smoky Hill River) will be
continued in use until the facilities herein applied for are ready for
operation, at which time the former will be abandoned.
It is requested that all correspondence in regard to this application
be directed to Mr. George Serrault, whose address is indicated at the
beginning of the Application, and that a copy be sent to Wilson & Company,
Engineers and Architects, P.O. Box 28, Salina, Kansas.
_kh
Encl.
cc: Mr. George Serrault
153 S. 4th
Salina, Kansas
SAUNA
WICHITA
Very truly yours,
WILSON & COMPANY
��641z&ey
K. W. Willey
A
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LEASE AGREEMENT
This lease agreement made and entered into this � day of
19// by and between the CITY OF SALINA, KANSAS, a municipal corporation,
hereinafter referred to as the party of the first part, and
�•�•��"��� �.- Vi. t"' 6-r of <_ct1`,. ri Kansas hereinafter referred to as the
narty of the second nart, WTTNESSETH:
That the party of the first part in consideration of the rents, convenants
and agreements of the said party of the second part hereinafter set forth does
by these presents grant, lease and rent unto the said party of the second part
the following -described property situated in the County of Saline State of Kansas,
to -wit:
A tract of land containing approximately seven (7) acres located in
Section Thirty (30), Township Fourteen (14) South, Range Two (2)
West in Saline County, Kansas, and generally described as the land owned
by the party of the first part, which lies North of the Kansas Power
& Light transmission line and bounded by the old and new channels of
the Smoky Hill River.
To have and to hold the same unto the said party of the second part for a term of
one year commencing on the day of _—ZL _•..c... , 19�_rr., and that said party
of the second part in consideration of the leasing of the premises as above set
forth covenants and agrees with the said party of the first part to pay the said
party of the first part as rental for the same the sum of $ 7� J Der year
which said rental shall be payable in advance prior to the commencement of each
lease year.
It is expressly understood that the party of the first part reserves an
easement over and across said tract for the purpose and use of the irrigation
system of the Elks Country Club, exibit A attached.
The said party of the second part further agrees to farm said land in a
good and workmanlike manner and to protect the same from waste,
After the termination of the primary term of ads lease, this lease shall
continue as a lease from year to year under the same terms and conditions as
herein set forth unless terminated as hereinafter set forth. If either party to
this lease desires to renegotiate any provision of this lease, such party shall
give written notice of their desired to renegotiate said lease by registered mail
addressed to the other party at least thirty days prior to the end of any lease
year.
This lease is subject to termination by either party at the end of any
lease year. If either party desires to terminate this lease, such party must give
written notice of its intention to terminate by registered mail addressed to the
other party at least sixty days prior to the beginning of any lease year.
The party of the second part shall not have the right to sublease the
premises covered by this lease or any portion thereof without the written consent
of the party of the first part.
The party of the second part agrees that he will use the premises for farming
purposes only and agrees to indemnify and hold the City harmless from any and all
liability which. may result from the party of the second part's use and operation
of the premises,
IN WITNESS WHEREOF the party of the first part has caused this contract
to be executed on its behalf by its Mayor and attestedtDlythe City Clerk and has
caused its seal to be hereto affixed, and the party of the second part has
subscribed his name all in the City of Salina, the day and year first above
written.
ATTESyT : 17
City Clerk
CITY OF LIN [ S _
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Party o First Part
Party of Second Part
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