HomeMy WebLinkAboutLee Rotinghaus-5/3/2010 (2)CITY OF WATERLOO, IOWA
LEASE AGREEMENT
for
CITY -OWNED PROPERTY
This Agreement made and entered into this 02 day of ; , 2010, by and between the City
of Waterloo, Iowa (hereinafter referred to as "City"), and , x.44.- (hereinafter referred to as
"Lessee").
1.The City agrees to allow the Lessee to use and occupy City property generally located west and north of
Northeast Drive, south of the Union Pacific Railroad near the Northeast Industrial Park, and legally described in
Exhibit "A" attached here to and made a part here of by this reference.
2. The City agrees to allow the Lessee to use and occupy the aforementioned City property for a term
commencing on the day of , 2010, and terminating on the day of December 31,
2012. The Lessee agrees to pay the City $1,045.00 ($95.00 per acre) per year for use of the said 11 acre City
property during said term.
3.The City may terminate this agreement upon thirty (30) days' written notice if the City needs the use of
said City property for its own purposes. As the applicant is using the land for crop production, the City would
need to reimburse the lessee for any crops in production at the time of termination.
Lessee may terminate this Agreement upon thirty (30) days' written notice to the Waterloo
Community, Planning, and Development Department. The full amount of the payment is due, and no annual
amount would be refunded if termination were to occur within the lease period.
4.In consideration of the extension of this Agreement to the Lessee, Lessee hereby agrees to indemnify
and hold the City harmless for any and all liability, claims, actions, causes or action, and/or damages which may
arise or allegedly arise out of Lessee's use of the aforementioned City property, either to the City's property, or to
any other person who may claim injury by and/or through, as a result of the alleged activity on City's property as
aforesaid. Lessee further agrees to indemnify and hold the City harmless for any and all damages or injury, which
may occur to Lessee's livestock as a result of the alleged activity on City's property as aforesaid. Lessee further
aggress to indemnify and hold the City harmless for any and all damages or injury which may occur to Lessee's
livestock as a result or consequence of the use of the City property.
5. This agreement contains the entire Agreement between the parties. None of the covenants, provisions,
terms or conditions of this Agreement will be in any manner modified, waived, or abandoned, except by written
instrument duly signed by both parties and delivered to the City and the Lessee. This occupancy agreement and
the terms and conditions herein apply and are binding on the legal representative, and successors and assigns of
both parties
EXECUTED THISDAY OF o , 2010
r
CITY OF WATERLO /
APPROVED BY:
Emest G. Clark, Mayor
ATTEST:
Suzy Schares, City Clerk
CITY'S ACKNOWLEDGMENT
STATE OF IOW
On this "` day of
k -COUNTY, SS:
, AD 2010, before me, the undersigned, a Notary Public
in and for said County, in said te, . -o ally appeexecl
°'and tia_grp.c,(ki-u( u( qaff'rto me personally known, who, before by me
duly sworn, did say ht they are the YOR and CITY CLERK, respectively, of said City executing the within
and foregoing instrument to which this is attached, that the seal affixed thereto is the seal of said City; that said
Instrument was signed and sealed on behalf of said City by authority of it's City Council; and that the said MAYOR
and CITY CLERK, acknowledged the execution of said instrument to be the v tary a and deed of said City,
by it and by them voluntarily executed.
r
AA
ovary Itublic in and fo
Exhibit "A" — Legal Description
A PARCEL OF LAND LOC IN THE SE SW THE NE SW AND THE NW SE ALL
IN SEC 20 T 89 R 12 DESC AS FOL: COM AT THE SW COR OF THE SE 1/4
OF SAID SEC 20 TH S 89 DEG 32 MIN 32 SEC W ON THE S LINE OF THE SW
1/4 OF SAID SEC 20 A DIST OF 663.43 FT TO THE SW COR OF THE E 1/2 OF
THE SE SW OF SAID SEC 20 TH NW ON THE W LINE OF THE E 1/2 OF THE
SE SW OF SAID SEC 20 A DIST OF 1289.91 FT TO THE PT OF BEG OF THE
PARCEL HEREIN DESC THE NW ON THE W LINE OF THE E 1/2 OF THE SE
SW OF SAID SEC 20 A DIST OF 37.97 FT TO THE NW COR OF THE E 1/2 OF
THE SE SW OF SAID SEC 20 TH NW ON THE W LINE OF THE E 1/2 OF THE
NE SW OF SAID SEC 20 A DIST OF 646.85 FT TO THE SELY ROW LINE OF
THE UNION PACIFIC RR TH NE ON THE SELY ROW LINE OF THE UNION
PACIFIC RR A DIST OF 78 DEG 38 MIN 06 SEC 93.70 FT TO THE N LINE OF
THE S 1/2 OF THE NE SW OF SAID SEC 20 TH N 89 DEG 34 MIN 40 SEC E
ON THE N LINE OF THE S 1/2 OF THE NE SW OF SAID SEC 20 A DIST OF
568.51 FT TO THE NE COR OF THE S 1/2 OF THE NE SW OF SAID SEC 20
TH N 89 DEG 26 MIN 35 SEC E ON THE N LINE OF THE S 1/2 OF THE NW SE
OF SAID SEC 20 A DIST OF 396.44 FT TH SWLY ON A 502.96 FT RADIUS
CURVE CONCAVE NWLY AND HAVING A 469.69 FT LONG CHORD
BEARING S 37 DEG 53 MIN 03 SEC W A DIST OF 488.69 FT (ARC LENGTH)
TH S 65 DEG 46 MIN 38 SEC W A DIST OF 828.62 FT TO THE PT OF BEG
-.Emm-•••••6.mmilli
-
eseei wie- sneg6uiflo- A4Jed:Ad pump 40
Mayor
BUCK
CLARK
COUNCIL
MEMBERS
DAVID
JONES
Ward I
CAROLYN
COLE
Ward 2
HAROLD
GETTY
Ward 3
QUENTIN M.
HART
Ward 4
RON
WELPER
Ward 5
BOB
GREENWOOD
At -Large
STEVE
SCHMITT
At -Large
CITY OF WATERLOO, IOWA
IMMIENCIMMELEME
COMMUNITY PLANNING AND DEVELOPMENT
715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4366 Fax (319) 291-4262
NOEL C. ANDERSON, Community Planning & Development Director
CITY OF WATERLOO
Council Communication
City Council Meeting: April 19, 2010
Prepared: April 13, 2010
Dept. Head Signature: Noel Anderson
# of Attachments: 7
SUBJECT: Request to set a date of public hearing to approve a 3 -year farm lease
with Lee Rottinghaus to farm 11 acres along the west side of Northeast Drive, north of
Independence Avenue @ $95.00 per acre with a yearly rental amount of $1,045.00
Submitted by: Noel Anderson, Community Planning and Development Director
Recommended City Council Action: Approval
Summary Statement: Transmitted herewith is the request that the City of Waterloo
approve a lease agreement with Lee Rottinghaus to farm approximately 11 acres of land
(see attached legal description and map) along the west side of Northeast Drive between
Independence Avenue and Martin Luther King Jr. Drive. Mr. Rottinghaus agrees to pay
the City $95.00 per acre for the use of the said land, which equates to $1,045.00 per year,
with the term beginning upon City Council approval. Mr. Rottinghaus has requested to
rent the land for a 3 -year timeframe, which would mean he would farm the ground in
2010, 2011 and 2012 if approved. Staff recommends that if a lease with Mr. Rottinghaus
is approved for a 3 -year timeframe, that the ending date of the tenancy be December 313`,
2012. In the past, Mr. Rottinghaus has leased this 11 acres of land in question for $90.00
per acre, however, last year, the City Council directed staff to reevaluate the rental amounts
the City was receiving for land leases, questioning if the City was receiving a fair rental
payment amount for farming purposes. The City and Mr. Rottinghaus have come to an
agreement to increase the rental amount by $5.00 per acre for a payment of $95.00 per
acre. The City believes the rental amount is a fair asking price based on the low quality of
the farmland in question in this particular area of the City. Mr. Rottinghaus has also
submitted data for this piece of ground, which indicates that the middle portion of the
land yields very little to no return on planted crops.
It should be noted that since the applicant is requesting a multi-year lease, the City Council
would need to set a date of public hearing and publish the pertinent notice relating to the
request. Therefore, staff would request that the City Council set a date of public hearing
and publish a pertinent notice for the request to enter into a multi-year lease agreement
CITY WEBSITE: www.cityofwaterlooiowa.com
WE'RE WORKING FOR YOU!
An Equal Opportunity/Affirmative Action Employer
with Lee Rottinghaus, with the term of the tenancy beginning upon City Council approval
in 2010, and the lease expiring on December 31, 2012.
Expenditure Required. None.
Source of Funds: N/A
Policy Issue:
Alternative:
Background Information: Lee Rottinghaus has farmed the ground in question in the
past. In years past, he has leased the ground for $90.00 per acre, however, this year, the
City and Mr. Rottinghaus have come to an agreement to increase the rent by $5.00 per
acre, for a total of payment of $95.00 per acre. In a 2009 survey done by Iowa State
University Extension of land rental rates for different agricultural uses throughout the
State of Iowa, the lowest rental rate submitted by a survey recipient in Black Hawk County
was $100.00 per acre for corn/soybean uses on low quality farmland (see the attached ISU
survey). Staff would consider the land that Mr. Rottinghaus is farming as low quality
farmland, and believes the proposed rental amount is fair. Mr. Rottinghaus has noted that
the ground in question remains wet for most of the growing season, and the soil is sandy in
some locations, resulting in lower yields. In the past, Mr. Rottinghaus has paid the City his
yearly rental amount in the month of December, and he intends to keep doing the same
for each year if a multi-year lease is approved.
Cc: Aric Schroeder, City Planner
-File-
•
January 12, 2009
Tim Andera
Associate Planner/Historical Preservation
715 Mulberry Street
Waterloo, Iowa 50703
Reference: Farm Lease for City Property
bear Mr. Andera:
Enclosed you will find copies of a map and field data for the 2009 crop yield for
the farm I currently rent from the city. As you can see, there is a large area
(white surrounded with red) in the 11 -acre field where there was no yield at all
and other areas of very low yield (red and orange). Approximately 3.0-3.5 acres
produced no yield or 27-31% of the field.
Looking at the data page, comparing the 11 -acre field, or the N. West field on the
data page, you will see that this field only yielded about 130 bushel/acre. This is
nearly 60-70 bushels/acre less than the rest of the field. This small 11 -acre field
even yields Tess than the usual low yielding end rows. End rows yield less because
of the compaction of the soil from farm machinery turning around while planting,
spraying, cultivating, harvesting, etc. Comparing this data, the 11 -acre field
yielded around 20bushel/acre less than the end rows.
I hope that this information helps clarify the reasons for asking lower rent for this
piece of land. If you have any more questions please contact me. My home
phone is: 319-827-2637. My Cell Phone # is: 319-240-8244.
Thank you for your time on this matter.
Sincerely,
Lee A. Rottinghaus
Grain Harvest 2009
';ER(CORN)
Grower : Lee Rottinghaus
Farm : ETRINGER
Field : ETRINGER
Year : 2009
Operation : Grain Harvest
CASE IH AFS Software -12/18/2009 7:41:26 AM
Estimated Volume (Dry)
(bu/ac)
® 228.59 - 393.64 (10.20 ac)
▪ 220.18 - 228.59(10.67 ac)
212.29 - 220.18 (10.87 ac)
202.14 - 212.29(10.95 ac)
182.20 - 202.14 (11.08 ac)
▪ 119.39 - 182.20(10.69 ac)
• 10.00 - 119.39( 9.59 ac)
Crop / Product : CORN
Op. Instance : Harvest - 1
Area : 74.05 ac
Avg. Yield : 188.01 bu/ac
Avg. Moisture : 27.79 %
1
N
Page 1 of 1
Cash Rental Rates for Iowa
2009 Survey
Ag Decision Maker
File C2-10
he cash rental rates presented in this publication
are the result of a survey of farmers, landowners,
agricultural lenders, real estate brokers, and profes-
sional farm managers. They supplied information based
on their best judgments about typical cash rental rates for
high, medium, and low quality cropland in their counties,
as well as for land devoted to hay production, oats, and
pasture. Information about individual parcels of land was
not collected.
The cooperation and assistance of the landowners,
farmers, and agribusiness people who responded to this
survey are greatly appreciated. The distribution of the
1,271 responses was 39% farmers, 27% landowners, 11%
professional managers, 15% lenders, and 9% other profes-
sions.
Responses received in 2009 were again more variable
than in previous years. This variability is likely due to the
volatility of corn and soybean prices in the past few years
and led to a wide range of opinions about typical rents in
some counties.
The rental rates summarized in this bulletin do not reflect
the value of any buildings or storage structures, manure
application contracts, or seed production contracts. Coun-
ties were grouped into areas as shown on the map below.
Circumstances such as the following may justify a higher
or lower rent in specific cases:
• Small size or unusual shape of fields
• Presence of terraces or creeks that affect the time it takes
to plant and harvest
• Difficult or restricted access to fields
• High or low fertility levels or Ph index
• Existence of contracts for growing seed or specialty
grains, or application of manure
• Above average local grain prices due to proximity to
biofuel plants or feed mills
• USDA program variables, such as crop bases and as-
signed yields
• Longevity of the lease
• Other services performed by the tenant
Additional information about cash rental rates by county
is available from the National Agricultural Statistics
Service (NASS) of the USDA. Rental rates quoted in the
NASS survey are for the previous crop year, and are aver-
ages for all cropland and pasture.
Lon
0.4." Da:kimon Emma
Area 1
abtr41 Cla)
Palo Aho
Kossuth
Winnebago Wore
Milcben
Hancad Area 3
Cc,, Gordo Flmd
Humboldt
h Area 2
Wright
Calhoun
R'o1..1Y Iluothon
Crnxfard Carroll
Area 6
Harrison
Audubon Go
Fmnklta Butler
Wmmnttshick ABanakce
Area 4
Futuna Cho to
Haden
Story blashall
Area 7
Polk
/aper
Bunton Lmn
Tama
Area 8
Pooeahick Io*,a Johnst,
Jones
10C1.5611
Area 9
Chita
%con
Ponan,nu., Casa
Area 10
Adair
Wan. Mesion
Area 11
K okuk W'asbinglw
Area 12
Nigh
MR1112911 Adams
Clads
Lucas Monroe
Wage*, /eITcrsoa Vern
D. Marne
Fm
Page T Tor
Ringgold Dccnlu
Way= Appan sec
Dais Von Roto
IOWA STATE UNIVERSITY
University Extension
FM 1851 Revised May 2009
Cash Rental Rates for Iowa - 2009 Survey Page 9
2009 CASH RENTAL SURVEY FOR AREA 8
Area Black
County Average Benton Hawk Buchanan Iowa ohnson Linn Poweshiek Tama
Number of responses 99 9 7 13 10 8 18 17 17
2004 - 2008 Avg. Corn Yield 173 174 177 173 172 163 170 180 179
2004 - 2008 Avg. Soybean Yield 51 52 52 50 51 48 49 54 54
Avg. Row Crop CSR Index 82 81 80 80 78 86 83 84 86
Typical Cash Rent for Corn and Soybeans. $ per acre
Overall average $192 $185 $221 $186 $203 $175 $198 $186 $186
High quality third
Average response $227 $215 $262 $218 $236 $214 $234 $221 $218
Range of responses
Medium quality third
Average response
Range of responses 150 - 250 160 - 275 160 - 220 175 - 265 97 - 200 160 - 240 120 - 220 150 - 250
ow quality third? ® a
Average response $158 $153 $180 $153 $166 $145 $159 $152 $153
Range of responses 130 - 180 100 - 250 110 - 200 130 - 220 70 - 180 125 - 210 100 - 200 120 - 195
175 - 280 170 - 350 190 - 250 210 - 285 140 - 280 165 - 350 150 - 275 170 - 280
$192 $188 $222 $188 $206 $165 $200 $183 $188
Typical Corn Yield. bu. per acre
High third 190 194 198 190 185 180 185 192 195
Middle third 169 176 178 170 167 152 164 174 173
Low mrd 137 140 145 137 143 119 130 147 137
Average Rents per 5 Year Average Yield or CSR
Rentperbu.ofcomyld $1.11 $1.06 $1.25 $1.08 $1.17 $1.07 $1.16 $1.03 $1.04
Rent per bu. of soybean yld $3.77 $3.55 $4.24 $3.75 $3.98 $3.66 $4.05 $3.45 $3.46
Rent per CSR index point $235 $2.28 $2.77 $2.34 $2.60 $2.02 $2.39 $2.20 $2.18
Typi Cash Rent for Oats. Hay. and Pasture. $ per acre
Alfalfa hay, established $131 $144 $101
Grass hay, established $107 $121
Oats $115 $133
Improved permanent pasture $62 $55 $56 $73
Unimproved permanent pasture $43 $37 $43 $47
Pasture, $/AUM NA
Cornstalk grazing $8
RESOLUTION NO. 2010-318
RESOLUTION APPROVING LEASE AGREEMENT WITH LEE
ROTTINGHAUS AND DIRECTING EXECUTION OF SAID
AGREEMENT BY MAYOR.
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA,
that the Lease Agreement dated May 3, 2010, at a cost of $95.0O
per acre with a yearly rental amount of $1,045.00, to farm
approximately 11 acres of land generally located along the west
side of Northeast Drive between Martin Luther King Jr. Drive and
Independence Avenue, by and between Lee Rottinghaus and the City
of Waterloo, Iowa, be and the same is hereby approved, and the
Mayor and City Clerk authorized to execute the same in behalf of
the City of Waterloo, Iowa.
PASSED AND ADOPTED this 3rd day of May, 2010.
ATTEST:
Ernest G. Clark, Mayor
uzyFSc(ares, CMC
City Clerk