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6.2 Supp Agr Farm Lease CITY OF SALINA REQUEST FOR COMMISSION ACTION DAT~ TIME January 9.3, 1995 4:00 P.M. AGENDA SECTION: ORIGINATING DEPARTMENT: APPROVED FOR NO. 6 AGENDA: General So.vices / ITEM: NO. 2 BY: Flank R. Welnhold Item: Resolution Number 95 - 484Q authori-.fng the City l~_ann~er to execute an addendum to lease agreement for City owned farm !and. Background: 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 a~-ieultural purposes. Law changes have complicated and eHmtnnted the City's q, mllfication for price support and production adjustment payments. The proposed addendum continues the arrangement in which the fa~n tenant is the applicant for all subsidies and then pays the City its 40% share. The addendum extends the lease through 2005. A copy of the proposed addendum is attached. Recommendation: Staff recommends adoption of Resolution Number 95- 484C~ COMMISSION ACTION MOTION BY SECOND BY THAT: EXTENSION OF CURRENT LEASE AGREEMENT This Extension of Current Lease Agreement made and entered into this 23rd day of January, 1995, 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 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 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 was extended and amended by Addendum to Lease Agreement Dated January 22, 1990, all of which are now collectively referred to as the "Current Lease Agreement". NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties mutually agree. I. Term of Lease. The Current Lease Agreement by and between the parties is hereby extended for an additional term of ten (10) years commencing in the year 1995 and shall terminate in the year 2005 on the dates and times specified in paragraph (5) of the original Lease Agreement. II. Other 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, and as amended by Addendum to Lease Agreement dated January 22, 1990, are hereby ratified and affirmed by the parties. III. Unique to Lessees. The City's desire to extend the Current Lease Agreement for an additional term of ten (10) years is dependent upon the unique capabilities of the Lessees to personally perform the duties of a tenant. If neither of the Lessees are able to perform the duties of a tenant during the extended term of the Current Lease Agreement, it shall terminate that same year on the dates and times specified in paragraph (5) of the Original Lease Agreement. IN WITNESS WHEREOF, the City has caused this Extension of Current Lease Agreement 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" (SEAL) ATTEST: Quentin L. Swenson Dennis D. Swenson Judy D. Long, City Clerk "Lessees"