HomeMy Public PortalAbout040-2019 - Finance - Sublease - Midwest Industrial Park - Tom HutchingsSUBLEASE AGREEMENT
THIS AGREEMENT is made and entered into by and between the ECONOMIC
DEVELOPMENT CORPORATION OF WAYNE COUNTY, INDIANA, an Indiana nonprofit
corporation, hereinafter referred to as "Landlord", and TOM HUTCHINGS, of 2076 Abington
Pike, Richmond, Indiana 41374, an individual, hereinafter referred to as "Tenant".
WITNESSETH:
WHEREAS, the City of Richmond., Indiana is the Owner of certain undeveloped portions
of the Midwest Industrial Park, situated within the southeast and southwest quarters of Section 3
and the northeast and northwest quarters of Section 10, all in Township 16 North, Range 1.4 East,'
Center Township, City of Richmond, Wayne County, Indiana (the "Real Estate"); and
WHEREAS, the Landlord has leased said Real Estate from the City of Richmond,
Indiana, pursuant to a written lease agreement dated December 18, 1998 for the purpose of aiding
in the development of the industrial park, which lease has been amended and extended to and
including December 31, 2028; and
WHEREAS, said lease agreement grants to Landlord the right to -sublease part or all of
the demised premises, subject to the approval of the Owner; and
WHEREAS, Landlord desires to sublease the tillable acreage of said Real Estate subject
to its right to aid in the development of the industrial park; and
WHEREAS, Tenant desires to rent the tillable acreage of said Real Estate for agricultural
purposes, subject to Landlord's right to develop an industrial park,
NOW, THEREFORE, the parties mutually agree as follows:
The Landlord subleases to Tenant the tillable acreage of said Real Estate,
consisting of approximately 154.32 acres and being more particularly identified as Tracts 1, 3, 4,
5, 8, 14, 15, 18 and 22 as shown on Exhibit A"l and, Tracts 8 and 10 as shown in Exhibit A-2,
both of which exhibits are attached hereto and incorporated herein by reference, which sublease
is subject to approval of the Owner acting by and through its Board of Public Works and Safety
Contract No. 40-2019
and subject to Landlord's reserved right to develop the Real Estate as more fully set out below,
The tillable acreage recited in this paragraph is the best estimate of the parties. The acreage and
the ,rent due thereon. are subject to adjustment based upon more accurate data which shall be
mutually acceptable to the parties: Any adjustment in the acreage shall be reduced to writing,
signed by the parties and attached as an addendum to this sublease. Any adjustment of the
tillable acreage shall be taken into account and reflected 'in the second installment of rent,
payable on or before the 15`h day of December of each lease year.
2. The term of this sublease shall be for two (2) crop years beginning with the.2019
crop year and running to and through December 31, 2020.
3. The Tenant shall pay Landlord rent for the tillable acreage at the rate of $190.00
per tillable acre per year. One-half of the rent shall be paid to Landlord on or before March 15th
of each calendar year and the balance of the rent shall be paid to. Landlord on or before
December 15th of each calendar year. The amount of rent shall be adjusted to take into. account
any acreage withdrawn from the sublease by Landlord in the manner set out below.
Landlord reserves the right to withdraw tillable acreage from the terms of this
sublease for purposes of preparing and developing a portion of the industrial park upon sixty (60)
days written notice to Tenant. Tenant shall be compensated for any damage as set out below. In
the event that Landlord shall withdraw more than 100 tillable acres from the terms of the
sublease, Tenant shall have the right to terminate this sublease agreement for subsequent
calendar years within fifteen (15) days after receipt of notice of Landlord's withdrawal of
acreage from the sublease resulting in a cumulative withdrawal of more than 100 acres.
Landlord reserves the right to enter upon the leased premises for the purpose of
making inspections, surveys, and performing other engineering tasks. In the event that Tenant
suffers crop damage -as a result of such inspections, surveys, or engineering tasks, Tenant shall
receive a credit against his December 15th rent payment in an amount equivalent to prorated
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rent, materials and equipment operation for the damage to crops occurring before July 15th of
any calendar year; for all crop damage or withdrawal of acreage occurring after July .15th, Tenant
shall receive a credit against his December 15th rent payment in an amount based upon the
following formula: "Damaged or lost acreage x average yield of same crop on balance of Real
Estate x Tenant's contract market price."
4. Tenant covenants and agrees as follows:
A. To use the Real Estate for the sowing, cultivation and harvesting of crops
and other related agricultural activities.
B. To farm the Real Estate in a husbandman -like manner.
C. To harvest and remove all crops in due season.
D. To furnish all equipment and labor and pay all costs of seed, fertilizer,
harvesting, drying and selling crops on the Real Estate.
E. To destroy all noxious weeds and nuisances in compliance with state law.
F. To commit no waste or damage on the Real Estate and to permit none to
be done. Tenant shall observe all environmental laws and regulations in the storing and
disposing of fertilizers, products, chemicals and petroleum. Tenant agrees to indemnify and hold
harmless Landlord from any liability resulting from the discharge, disposal, seepage or leak of
any toxic chemical, including fertilizers, on the premises, and from any violation of any
environmental law or regulation that occurs during the term of this sublease, from any liability
arising out of personal injury or damage to property, resulting from the acts or omissions of
Tenant, his employees, agents or assigns. Tenant shall provide written evidence of liability
insurance covering damage to property and personal injury arising out of his farming operations.
G. To keep in good repair all terraces, open ditches, inlets and outlets of the
drains, preserve all established water courses, and refrain from any operation or practice that will
injure them.
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H. To pay all costs and expenses, including reasonable attorney's fees,
incurred by Landlord in connection with any action or litigation necessary or expedient in the
enforcing of any of the provisions or conditions of this sublease.
I. To yield up the premises to Landlord upon termination of the sublease,
without notice.
S. Landlord covenants and agrees as follows:
A. Subject to the approval of the City of Richmond, Indiana by and through
its Board of Public Works and Safety, and subject to Landlord's right to go upon the premises for
the purposes of developing an industrial park and. to withdraw acreage from same, that Tenant
shall peaceably hold and enjoy the leased Real Estate. during the term of the sublease.
B. To pay or cause to be paid all property taxes and assessments levied
against the Real Estate.
C. To procure the assignment of Government Product Flexibility & Low
Deficiency Payments fforn the Farm Service Agency to Tenant.
6. This sublease
blease shall be 'binding upon the heirs, successors and assigns of the
respective parties.
7. This agreement supersedes All prior agreements, oral and written, among the
parties hereto with respect to the subject matter hereunder,
8. This agreement may be executed in one or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument.
9. This agreement shall be construed and enforced pursuant to the laws of the State
of Indiana.
IN WITNESS WHEREOF, the respective parties have caused this agreement to be
executed on the dates shown below.
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TENANT:
Date: I (v III 13� TomHutchings
LANDLORD;
ECONOMIC DEVELOPMENT CORPORATION
OF�WAYNECOUN DIANA
Date: ,3/4/1 q
Valerie Shaffer, -P-ri`esident
Uv
APPROVED BY OWNER:
CITY OF RICHMOND, INDIANA by and through
its Board of Public Works and Safety
Date: _ C%'7 7 �d By . `%t/�G�"moo ��/��/%/�''✓
Vicki
APPROVED BY MAYOR:
Date: B r
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