HomeMy WebLinkAboutLanehaven Farms - Lease_Agreement - 10.3.2022Iowa Farm Cash Lease
3rd October 2022
This agreement is made the day of ,
between
City of Waterloo hereinafter called the landlord and whose
address for the purposes of this lease is 715 Mulberry Street, Waterloo, IA 50703
and Lanehaven Farms, Inc. hereinafter called the tenant and whose address
for the purposes of this lease is 7502 Hammond Ave, Waterloo, IA 50701
SECTION I. DESCRIPTION OF FARM
In consideration of the rent specified below, the landlord hereby leases to the tenant the farm of
169.91 acres, more or less, known as the L&H Development Farm, located in Black Hawk
County, State of Iowa.
The description of the farm is as follows:
169.91 Acres 9 Section 88-N, 13-W Township 8240 FSA Farm Number
SECTION II. LENGTH OF THE LEASE
Subject to the terms hereof, the length of the lease is from March 1, 2023 , through the last day of
February 2024 , and continuing thereafter from year to year until either party gives written notice to
the other before September 1 to terminate the lease on the last day of the next February.
EARLY TERMINATION; Compensation to Tenant. Notwithstanding anything to the contrary in this
Section II, Tenant agrees that the landlord may terminate this agreement, as to any part or all of the
premises, upon sixty (60) days' advance written notice if the landlord needs the use of the premises for
its own purposes, including but not limited to a third -party economic development purpose, and tenant
hereby expressly waives any rights under Iowa law that may require the giving of a different notice of
termination or the giving of notice of termination by a specific date. Tenant hereby acknowledges and
agrees that it takes and uses the premises subject to the risk of early termination, and tenant hereby
agrees to assume said risk. Tenant may terminate this agreement, in whole but not in part, upon thirty
(30) days' written notice to the Waterloo Community Planning and Development Department.
As consideration for tenant's agreement to allow early termination as set forth in the preceding
paragraph, landlord agrees that upon early termination, if there are crops still in the ground at the
effective date of termination and not suitable for harvesting, landlord will compensate tenant as
follows:
a. Corn. For corn of any variety that has been planted but not harvested, a sum
equal to the product of (A x P x Y x 1.1), where A is the number of tillable acres on which a corn
crop is growing, P is the Iowa average calendar year cash corn price per bushel as most recently
reported by Iowa State University Extension and Outreach or its successor office ("ISU"), and
where Y is the 10-year average corn yield for Black Hawk County as most recently reported by
ISU.
b. Soybeans. For soybeans of any variety that have been planted but not
harvested, a sum equal to the product of (A x P x Y x 1.1), where A is the number of tillable acres
on which a soybean crop is growing, P is the Iowa average calendar year cash soybean price per
bushel as most recently reported by ISU, and where Y is the 10-year average soybean yield for
Black Hawk County as most recently reported by ISU.
If any report or resource referred to in the preceding paragraphs is no longer published or
available at the time that crop -loss damages are calculated, landlord may substitute any other
report or resource that it considers appropriate in its reasonable discretion.
SECTION III. AMOUNT OF RENT
The tenant will pay to the landlord as rent for the above -described farm annual cash rent totaling
$50,973 or $300 per tillable acre for all cropland in the above -described farm. In computing
the cash rent the acres used shall be determined by FSA measurement. The cash rent shall be due and
payable as follows: (Date) December 1 , (Amount) $50,973.00 of each lease year.
SECTION IV. OTHER PROVISIONS
1. Care of Property. Tenant agrees to do what is reasonably necessary to control soil
erosion including, but not limited to, providing labor and normal farm equipment for the maintenance
of existing watercourses, waterways, ditches, drainage areas, terraces and tile drains, and abstaining
from any practice which will cause damage to the premises. Tenant agrees to use reasonable efforts to
control weeds in fields, fence rows, road ditches, building lots, and all other areas of the premises.
2. No Hunting. Tenant shall not hunt nor permit any other person to hunt on the premises.
If tenant becomes aware of trespassers on the premises, it will instruct them to leave immediately.
3. Indemnity. Tenant hereby agrees to indemnify and hold harmless landlord, its officials,
officers, employees and agents, from and against any and all claims, demands, actions, causes of action,
fines, fees, penalties, costs, damages or liabilities of any type or nature whatsoever, including but not
limited to reasonable attorneys' fees, arising from or in any way related to the negligent acts or
omissions or intentional misconduct of tenant, its employees, contractors and agents, upon or about the
premises.
4. Insurance. Tenant shall, at its own expense, procure and maintain comprehensive
public liability insurance in the amount of not less than $500,000 per occurrence. Such insurance shall
cover liability arising from the acts or omissions of tenant, its employees and agents, and shall protect
the landlord against such claims, damages, costs or expenses on account of injury to any person or
persons, or to the property of same, by reason of such casualty, accident or other occurrence on or
about the premises during the term of this agreement. Certificates or copies of said policies, naming the
landlord as an additional insured and providing for thirty (30) days' advance notice to the landlord
before cancellation, shall be delivered to landlord no later commencement of the lease term. A renewal
certificate shall be provided to the landlord prior to expiration of any policy. The landlord shall provide
no insurance for the property or activities of the tenant, its agents or employees.
5. Chemicals. Tenant shall comply with all applicable environmental laws concerning
application, storage and handling of chemicals (including, without limitation, herbicides and insecticides)
and fertilizers. Tenant shall apply any chemicals used for weed or insect control at levels not to exceed
the manufacturer's recommendation for the soil types involved. Farm chemicals may not be stored on
the premises. Chemicals used on the premises shall be stored in clearly marked, tightly closed
containers. No chemicals or chemical containers will be disposed of on the premises. Application of
chemicals for agricultural purposes per manufacturer's recommendation shall not be construed to
constitute disposal. Tenant shall immediately notify landlord of any chemical discharge, leak, or spill
which occurs on the premises.
2
Further, tenant shall employ all means appropriate to ensure that well or ground water
contamination does not occur, and shall be responsible to follow all applicator's licensing requirements.
Tenant shall properly post all fields (when posting is required) whenever chemicals are applied by
ground or air. Tenant shall not dispose of any substances, including but not limited to waste oil, tires,
batteries, paint, other chemicals or containers, anywhere on the premises. Solid waste may not be
disposed of on the premises. No underground storage tanks shall be placed or maintained on the
premises. After termination, tenant shall remain liable for violations which occurred during the term of
this agreement.
6. No Sublease or Assignment. Tenant shall not lease or sublet any part of the premises
nor assign this agreement to any other person without the prior written permission of the landlord.
7. Condition at End of Term. Tenant agrees that on termination of the agreement, tenant
will yield possession of the premises to landlord without further demand or notice, in as good order and
condition as at the beginning of the term of this agreement. Loss or damage by forces beyond tenant's
control and ordinary wear and tear are excepted.
8. Access. Tenant shall permit landlord, its employees, contractors and agents, access to
the premises, upon reasonable advance notice, for purposes of inspection and testing in connection
with proposed economic development.
9. Miscellaneous. This agreement contains the entire agreement between the parties, and
no provisions hereof may be in any manner modified or waived, except by written instrument duly
signed by both parties. This agreement is binding upon and shall inure to the benefit of the parties and
their respective heirs, personal representatives, successors and assigns.
IN WITNESS WHEREOF, the parties have executed this Iowa Farm Cash Lease by their duly
authorized representatives as of the date first set forth above.
THE CITY OF WATERLOO, IOWA, A MUNICIPAL CORPORATION
l h +tag
By:
Quentin M. Hart, Mayor
Kelley Fe[ch[e
By:
Kelley Felchle, City Clerk
L & H FARMS, LTD.
By: LANEHAVEN FARMS, INC., Partner
Bv:
Curtis G. Hollis, President
3