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HomeMy WebLinkAbout~Master - Entering into a Lease Agreement with Deere & Company for Approximately 53.03 Acres of City Land located along South Riverside Drive DO NOT WRITE IN THE SPACE ABOVE THIS LINE,RESERVED FOR RECORDER Prepared by:City Clerk's Office,515 Clark Avenue,Ames,IA 50010 Return to:Ames City Clerk,P.O.Box 811,Ames,IA 50010 Phone:515-239-5105 RESOLUTION NO. 18-525 RESOLUTION ENTERING INTO A LEASE AGREEMENT WITH DEERE & COMPANY FOR APPROXIMATELY 53.03 ACRES OF CITY LAND LOCATED ALONG SOUTH RIVERSIDE DRIVE WHEREAS, on August 28, 2018, City Council set the date of public hearing for a ten-year land lease with John Deere at the Ames Municipal Airport; and, WHEREAS, the lease will allow John Deere to field test their spray equipment on crops (corn, soybeans, etc.) that will be planted on the leased area; and, WHEREAS, the lease terms (under Section 9: Use/Purpose) limit John Deere only to spray water on Airport property; therefore, John Deere cannot spray or use any hazardous chemicals on City property and is responsible for minor spills related to equipment use; and, WHEREAS, additionally, any application of chemicals for weed and pest control on the leased property, will be applied by the City's Airport tenant farmer or a commercial applicator in accordance with the City's Storm Water Permit and conservation requirements of the Airport farm lease; and, WHEREAS, John Deere cannot place any permanent structures on the property without City approval and at the end of the lease, must restore the property in the same or better condition that it exists today; and, WHEREAS, staff has worked with John Deere to draft a ten-year lease for the use of 53.03 acres of Airport property with the starting rate of$236/acre/year i.e., $12,515 for the first year; and, WHEREAS, the lease term begins on March 1, 2019 and goes through February 28, 2029, for the remaining nine years of the lease, the annual rate will be adjusted using the same per acre rental rate that the City receives in revenue from the Airport tenant farmer who rents the remainder of the Airport property; and, WHEREAS, John Deere has the ability to reduce the number of acres leased if in a given year they feel the annual rent due has become too excessive, in which case the City would agree to reduce the number of leased acres available to John Deere and the reduced acres would be returned to the City's tenant farmer and put back into production; and, WHEREAS, after the first ten-year period, the contract has a provision to extend the lease under the same terms for five additional five-year periods; and, WHEREAS, at any time during the lease period, or during the extension periods, the City can terminate the lease in two ways: 1. To protect the safety of air travel at the Airport 2. If there is a business purpose or potential development opportunity by giving advanced notice of 365 days. NOW, THEREFORE,BE IT RESOLVED, by the City Council of the City of Ames, Iowa, that the initial ten-year term of the lease with John Deere for Airport property is hereby approved. ADOPTED THIS 1 Ph day of September, 2018. Diane . Voss, City Clerk John . Haila a or Introduced by: Gartin Seconded by: Betcher Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Martin,Nelson Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 11th day of September, 2018.