Loading...
HomeMy WebLinkAboutMichael_S_Cook_-_Farm_Lease_Agreement_2080_Northeast_Drive_-_5.19.2025 Docusign Envelope ID:43BD061F-D025-4D68-B45B-FBBAD9979995 FARM CASH LEASE for CITY-OWNED PROPERTY This Farm Cash Lease(the"Agreement") is made and entered into as of May 19 , 2025 by and between the City of Waterloo, Iowa ("City")and Michael S. Cook("Lessee"). 1. Premises, Use. The City agrees to allow the Lessee to use and occupy City property(the "Property") located on Parcel Nos. 8912-20-251-012, and 8912-20-401-008, and more particularly described in Exhibit"A"attached hereto and made a part hereof by this reference. Lessee shall use the Property only for row crops and shall not use the Property for any other purpose whatsoever. Lessee may not make any improvements to the Property. Lessee accepts the Property in its"AS IS"condition,with all faults, and without any representation or warranty by City as to the Property's condition or its suitability for crop production or for any other purpose. City shall not prepare the Property for Lessee's use in any way. 2. Terin,�Ren . The City agrees to allow Lessee to use and occupy the Property for a term commencing on the date hereof and tot-initiating on December 31, 2025, subject in any ease to early termination as provided in Section 3. As rental, the Lessee agrees to pay the City the sum of$1,050.00 to farm a tillable area of approximately 5.25 acres at $200 per acre upon execution of this Agreement. If the term of this Agreement is extended by the mutual agreement of the parties, then rent shall be payable on the date that Lessee delivers an executed amendment to City. Any payment made is non-refundable in the event this Agreement is terminated by either party pursuant to Section 3 below. If rent is not paid by the due date(s), interest shall.be charged at the rate of 12% percent per annum, compounded monthly,beginning five(5) days after the due date, until paid. All rent is to be paid to the City of Waterloo, 715 Mulberry Street, Waterloo, IA, 50703, Attn: Community Planning& Development, or at such other place as the City may direct in writing. 3. EARLY TERMINATION; Compensation to Lessee. Lessee agrees that the City may terminate this Agreement, as to any part or all of the Property, upon thirty(30)days' written notice if the City needs the use of the Property for its own purposes, including but not limited to a third-party economic development purpose, and Lessee hereby expressly waives any rights it may have under Iowa law that may require the giving of a different notice or the giving of notice by a specific date. Lessee hereby ackrrowlerlges and agrees that it takes and uses the Property subject to the risk of early terntivatiou, and Lessee hereby agrees to asswite said risk. Lessee 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 Lessee's agreement to allow early termination as set forth in the preceding paragraph, the City agrees that upon early termination,the City will compensate Lessee as follows, provided, however,that in no event shall compensation to Lessee under this Section exceed the annual rental amount: 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. C. Grains and other crops. NIA. 1 Docusign Envelope ID:43BDO61 F-D025-41D68-134513-1`13BAD9979995 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, City may substitute any other report or resource that it considers appropriate in its reasonable discretion. 4. Care of Property. Lessee 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. Lessee agrees to use reasonable efforts to control weeds ill fields, fence rows, road ditches, building lots, and all other areas of the prernises. 5. Livestock. Lessee shall not allow or place any livestock on the Property. 6. No Hunting. Lessee shall not hunt nor permit any other person to hunt on the Property. If Lessee becomes aware of trespassers on the Property, it will instruct them to leave immediately. 7. Indemnify. In consideration of the extension of this Agreement to the Lessee, Lessee hereby agrees to indemnify and hold the City harmless from and against any and all claims, demands, actions, causes of action,fines,fees, penalties, damages and liabilities of any type or nature whatsoever, including but not limited to reasonable attorneys' fees, relating to any person or property, arising from in in any way connected with Lessee's use of the Property in any manner,whether directly or indirectly,and shall further indemnify the City for any damage to the Property caused by Lessee, its employees or agents and any environmental remediation or cleanup costs. 8. Insurance. Lessee shall, at its own expense, procure and maintain comprehensive public liability insurance in the arnount of not less than $500,000 per occurrence. Such insurance shall cover liability arising from the acts or omissions of Lessee, its employees and agents, and shall protect the City 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 Property during the term of this Agreement. Certificates or copies of said policies, naming the City as an additional insured, and providing for thirty(30)days' advance notice to the City before cancellation,shall be delivered to City no later commencement of the lease term. A renewal certificate shall be provided to the City prior to expiration of any policy. The City shall provide no insurance for the property or activities of the Lessee, its agents or employees. 9. Vehicle Restrictions. Lessee agrees to prohibit all engine-powered off-road vehicles and four- wheel drive vehicles other than agricultural equipment. 10. Third-Party Riehts. Reserved. 11. Chemicals. Lessee shall comply with all applicable environmental laws concerning application, storage and handling of agricultural chemicals(including, without limitation, herbicides and insecticides) and fertilizers. Lessee 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 Property. Chemicals used on the Property shall be stored in clearly marked, tightly closed containers. No chemicals or chemical containers will be disposed of on the Property. Application of chemicals for agricultural purposes per manufacturer's recommendation shall not be construed to constitute disposal. Lessee shall immediately notify City of any chernical discharge, leak, or spill which occurs on the Property. Lessee shall employ all means appropriate to insure that well or ground water contamination does not occur,and shall be responsible to follow all applicator's licensing requirements. Lessee shall properly post all fields (when posting is required)whenever chemicals are applied by ground or air. Lessee shall not dispose of any substances, including but not limited to waste oil, tires, batteries, paint, other chernicals or containers, anywhere on the Property. Solid waste may not be disposed of on the Property. Dead livestock may not be buried on the Property. No underground storage tanks shall be placed or maintained on the Property. 2 Docusign Envelope ID:43BD061F-D025-4D68-B45B-FBBAD9979995 After termination, Lessee shall remain liable for violations which occurred during the term of this Agreement. 12. City Access. The City may enter the Property at any reasonable time for the purpose of consulting with Lessee,viewing the Property,making improvements, or for other reasonable purposes that do not interfere with Lessee's ability to use the Property as provided herein. 13. No Sublease or Assignment. Lessee shall not lease or sublet any part of the Property nor assign this Agreement to any other person without the prior written permission of the City. 14. Condition at End of Term. Lessee agrees that on termination of the Agreement,Lessee will yield possession of the Property to City 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 Lessee's reasonable control and ordinary wear and tear to existing improvements are excepted. 15. No Joint Venture. Nothing in this Agreement shall,or shall be deemed or construed to,create or constitute any joint venhrre,partnership, agency, employment,or any other relationship between City and Lessee nor to create any liability for one party with respect to the Iiabilities or obligations of the other party or any other person. 16. Default. If Lessee fails to observe any term or condition of this Agreement, including but not limited to the payment of rent, it shall be in default of this Agreement, and City may then exercise any and all legal remedies available under applicable law. In the event of default Lessee shall be liable for any and all damage or loss suffered or incurred by City, including but not limited to reasonable attorneys' fees and expenses incurred in connection with the exercise of any right or remedy by City. 17. Notices. Any notice under this Agreement shall be in writing and shall be delivered in person or by United States certified mail, postage prepaid, and addressed to the other party at its last known address. Delivery of notice shall be deemed to occur(i) on the date of delivery when delivered in person, or(ii)three(3) business days following the date of deposit if mailed by United States certified mail, postage prepaid. 18. Miscellaneous. 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. 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 Farm Cash Lease by their duly authorized representatives as of the date first set forth above. CITY OF WATERLOO,IOWA LESSEE DocuSigned by: By. V, AAyf Quen m at , ayor Mielfiael A, Cook DocuSigned by: AA ��AA� Attest: f ea.,& e ey e c r e,City Clerk 3 Docusign Envelope ID:43BDO61 F-D025-4D68-B45B-FBBAD9979995 EXHIBIT "A" Property Description Northeast Industrial Park,Plat No. 5, Lot 2, except that party lying North of the South Line of the Northeast Quarter, Section 20,Township 89 North, Range 12 West of the Fifth Principal Meridian; AND That part of the Northeast Quarter of the Southeast Quarter of Section No. 20,Township 89 North, Range 12 West of the Fifth Principal Meridian lying Southerly of the former Chicago Great Western Railroad right of way, and lying Easterly of Northeast Drive; All in the City of Waterloo, Black Hawk County, Iowa. 4