HomeMy Public PortalAbout159-2019 - Airport - Lease - B.A. Mikesell Hinc - Farm LeaseLEASE
THIS LEASE .made this day of /\/2019, by and
between the CITY OF RICHMOND, INDIANA, a Municipal Corporation, by and
through its BOARD OF AVIATION COMMISSIONERS, hereinafter referred to as
"City", and B.A. Mikesell, Inc., 2129 Stephens Road, New Madison, Ohio, 45346
hereinafter referred to as "Lessee,"
WITNESSETH:
WHEREAS, said City is the owner of approximately 651.88 acres of land in �.
Boston Township, Wayne County, Indiana, Described as follows, to -wit:
A tract of land situated in a part of Section 26 and 35, Township 13 North, Range
1 west, Boston- Township, City of Richmond, Wayne County, Indiana, more
particularly described as follows:
The North Half of Section 35, the South Half of Section 26, and a part of the
Northwest Quarter of Section 26, said fractional quarter begin described as
follows: Beginning at_the Southwest corner of said quarter section thence North
along the west line of said quarter section a distance of 191.90 feet to a point in
the center of Bulla Road; thence East along a line being parallel to the South line
of said quarter section a distance of 2336.'89 feet to a point; thence South parallel
to the west line of said quarter section a distance of 191.90 feet to a point on the
South line of said Northwest quarter said point being 313.50 feet west of the
.Southeast corner of said quarter section; thence West along the South line of said
quarter section to the point of beginning, containing in all 651.89 acres, more or
less, subject however to all legal highways and/or rights -of -ways thereunto
belonging,
and known as the Richmond Municipal Airport, hereinafter designated "Airport
Property," and upon which are located certain improvements including but not limited to
hangars, buildings, runways, taxi strips, towers ,and , other improvements used in
connection with the operation of the airport; and
WHEREAS, said Airport Property includes approximately 447 acres more or
less of unimproved real estate which has for a number of years been employed for
agricultural purposes, hereinafter referred to as the "Farm Premises and
Contract No. 159-2019
Page 1 of 7
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WHEREAS, the Farm Premises have been surveyed, measured and determined
by representatives of the Agricultural Stabilization and Conservation Service (ASCS)
Wayne County Committee, who have indicated correct acreage content of the farm fields
on aerial photographic map, which map is attached hereto, made a part hereof and
marked Exhibit "A". and
WHEREAS, said City is willing to lease and Lessee having examined said
premises and based upon its examination and knowledge is desirous of leasing the Farm
Premises for agricultural purposes only.
NOW, THEREFORE, for and in consideration of the covenants and agreements
contained herein, including the above --stated recitals, the City hereby leases unto Lessee
and Lessee hereby leases from City, the Farm Premises described herein and depicted in
Exhibit "A", which Farm Premises specifically do not include any area -now or hereafter
used for Airport purposes.
DESCRIPTION AND• PURPOSE: .
1. The Farm Premises are depicted in Exhibit "A", ,which Exhibit "A", the
parties hereto mutually acknowledge and agree to depict the true and correct acreage of
the Farm Premises, totaling approximately 447 acres, and exclude any and. all
improvements located on said Airport Property. The parties hereto have affixed their
respective initials to Exhibit "A" as evidence of such acknowledgment.
2. The Lessee hereof agrees to use the Farm Premises solely for farming in
the sowing, cultivation, and harvesting of crops which shall be limited to corn, wheat,
oats, soy beans, and alfalfa, and no other use shall be permitted thereon.
3. Lessee agrees that all cultivation of crop Fields (designated as Fields 1-1 S)
shall be limited as regulated by the FAA and at the minimum setbacks as regulated by the
FAA, and shall also be limited to areas as described on Exhibit "A" and as follows:
a. No crops shall be cultivated or grown within the areas
immediately adjacent to the paved surface areas of all runways and
taxiways which are marked as the purple -shaded areas on Exhibit "A" to
this Agreement;
Page 2 of 7
b. only low -profile crops (soy beans, wheat, or alfalfa) are
permitted to be cultivated or grown within Fields designated on Exhibit
"A" to this Agreement as Fields 2, 4, 5, 6, 7, 8, 12, 13, 14, -16, and 17,
marked as those orange -shaded areas on Exhibit "A" to this Agreement.
High -profile crops are prohibited from being cultivated or grown in said
Fields;
C. High profile crops are permitted to be cultivated or grown
,within Fields designated on Exhibit "A" to this Agreement as Fields 1, 3,
9, 10, 11, 15, and 18, -marked as those green -shaded areas on Exhibit "A"
to this Agreement.
4. Lessee agrees to conduct its farming operation only in such manner so as
to not interfere in any way with the operation of the Airport.
5. Lessee may, at its option, .participate in any Federal or State program
related to agriculture, and any benefit or payment received therefrom shall be the sole
property of Lessee. The location of any particular area of the Farm Premises affected
thereby shall be determined by consultation with the Airport Manager designated by the
City.
6. Lessee will agree to release to the City any portion of the land subject to
this Lease which may become essential -to Airport operation. Such release will be made
at the end of the crop season when possible. If such reduction in lease land should result,
the City will reduce the annual rental by an amount proportionate to the total rent/acreage
ratio.
7. The term of this Lease shall be for two (2) years with the option to renew
for an additional two (2) years in one (1) year extensions, for a total of four (4) years. In
the event Lessee determines Lessee will not exercise an option to renew, Lessee shall
notify the Airport Manager in writing at least ninety (90) days prior to the end of the
current --year term.
8. The Lessee agrees to pay to the City as rent for the Farm Premises the.
Total annual sum of One Hundred Forty-one Thousand Two Hundred Fifty --two Dollars
and Zero Cents ($141,252.00) ($316.00 per acre x 447 acres). The annual rent for the
first year will be divided as follows: fifty percent (50%) of the annual rent on or before
May 1, 2019, fifty percent (50%) of the annual rent on or before November 1, 2019.
Page 3 of 7
Thereafter payments will be due, fifty percent (50%) on or before March 1s' of each year
and fifty percent (50%) on November 1" of each year for the duration of the lease. All
payments are payable at the office of the Airport Manager, Richmond Municipal Airport.
9. Since the City desires to maintain the productivity and tilth of the Farm
Premises, it will contribute up to fifty percent (50%) of the cost of application and
purchase of Agricultural limestone with the approval of the Board of Aviation
Commissioners. The Lessee will arrange for soil testing and consult with the Airport
Manager when test results have been returned. Any areas- determined by soil test to be of
a PH of 6.0 or less, shall receive 2 Tons of AG lime. A copy of testing shall be provided
to the Airport Manager annually.
Any- breaks in Airport tile, meaning blow holes, shall be identified and made
known to the Airport Manager by Lessee(s) immediately so that Airport may effect
repair.
SPECIFIC AGREEMENTS OF LESSEE:
10. Lessee further covenants and agrees that it will:
(a) Farm the Farm Premises according to good farming practices
designated to preserve the value and quality of the farm land.
(b) Furnish at its sole expense all the machinery, equipment, and labor
necessary to farm said premises properly; and further, it will furnish at its sole expense all
the seed, fertilizer, 'sprays, and herbicides required. The opinion of the County
Agricultural Agent shall be decisive in the event there is a dispute as to the proper
amount, type, or quality of fertilizer to be employed, and Lessee will solely bear all
expenses connected with operations an maintenance of all machinery and equipment.
I
(c) Remove from the Farm Premises at its sole expense stones that
may interfere with proper cultivation and farming of said premises.
(d) Follow generally recommended practices in plowing, planting, and
cultivation to prevent the loss of soil and water through erosion. Specifically, the Lessee
will not engage in Fall plowing with a moldboard plow, and will not plant soybeans four
years in succession in any field. The lessee will control gullies in their early stages and
agrees to correct any practices that will result in the loss of soil and water erosion.
Page 4 of 7
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(e) Spray and mow all open ditches on said Airport to prevent the
growth of weeds and will keep all the Farm Premises free of noxious weeds and growth
and keep the weeds and the grass cut on the road adjoining the Farm Premises. Lessee
shall keep all set -aside acres mowed and permit growth no higher than sixteen (16) inches
at all times.
(f) Not assign this Lease to any person, persons, firms, or corporations
or sublet any part of the premises without the written consent of the City.
(g) Clean foreign material deposited on runways or taxiways resulting
from transport of farm equipment from one field to another.
(h) Permit the City's employees, agents, or representatives to enter
Farm Premises at any time for inspection and to make improvements and repairs. Should
any damage to crops be incurred by such repairs or improvements, Lessee shall be
reimbursed for his share of any such crop damages.
(i) Indemnify and save said City harmless from and against all loss, .
damage, liability, or claims occasioned by, growing out of, arising, or resulting from the
Lessee's conducting said fanning operation on said premises, whether said loss, damage,
liability or claim shall result from an act or omission of the Lessee .personally or his
employees, agents licensees, or representatives. It is further understood and agreed ' that
said Lessee shall carry Public Liability and Property Damage insurance in the amount of
One Million Dollars ($1,000,000.00) satisfactory to and fully protecting said City, a copy
of which insurance policy shall be filed with the City Controller. The City is- to be named
co-insured on said insurance policy.
(j) Yield possession of the farm at the end of the term of this Lease or
at any prior termination thereof as hereinafter provided.
(k) Pay all costs and expenses, including attorneys fees, incurred by
City in connection with any action or litigation necessary or expedient in the enforcing of
any of the provisions or conditions of this Lease.
(1) Not burn cornstalks, straw, or other crop residues grown upon the
farm except by permission of the City, but to leave or spread all such material upon the
land, and in no case to remove from the farm any such material without the consent of the
City, except straw from the wheat.
Page 5 of 7
(m) Not break up established watercourses or ditches, or undertake any
other operation that will injure said land.
(n) Follow standard disease treatments for all seeds.
(o) Keep the farm stead neat and orderly.
(p) Maintain a sod grass level border along each ditch or watercourse
on the Airport to avoid the removal by water erosion of any soil of the Airport Property
and to prevent any accumulation of soil on land of property owners downstream.
(q) Keep cut and trimmed all areas herein leased to Lessee shall be
when not in use by Lessee.
(r) Shall not operate or use as a thoroughfare or travel zones or park
any equipment on any runway, taxiway or restricted zones. Access thru these areas must
be approved by the Airport Manager. Each operator employed by Lessee must sign off
on this procedure- prior to operation of any equipment at the Airport.
MISCELLANEOUS PROVISIONS
11. All agreements, conditions, and undertakings herein contained shall
extend to and be binding on the representatives, heirs, executors, administrators,
successors, and assigns of the Lessee as if they were in all cases named.
12. This Agreement is personal to the parties hereto and neither party may
assign or delegate any of its rights or obligations hereunder without the prior written
consent of the other party.
13. This Agreement shall be controlled -by Indiana law and -shall be binding
upon the parties, their successors and assigns.
14. This Agreement constitutes the entire Agreement between the parties,
although it may be altered or amended in whole or in part at any time by filing with the
Agreement a written instrument setting forth such changes signed by both- parties.
15. - This Agreement may be simultaneously executed in several counterparts,
each of which: shall be an original and. all of which shall constitute but one and the same
instrument.
16. The parties -hereto submit to jurisdiction of the courts of Wayne County,
Indiana, and suit arising under this Contract, if any, must be filed in said courts.
Page 6 of 7
-17. Any person executing this Contract in a representative capacity hereby
warrants that he has been duly authorized by his or her principal to execute this Contract.
18.. In the event 'that an ambiguity or question of intent or a need for
interpretation of this Agreement arises, this Agreement shall be construed as if drafted
jointly by the parties, and no , presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any of the provisions of this
Agreement.
IN TESTIMONY WHEREOF, the Parties hereto have caused this Agreement to
be executed, in duplicate, the day and year first above written, although signatures may
be affixed on subsequent dates.
"LESSEE"
B.A. Mikesell, Inc.
By;�,r�-u
Printed: &Vc< In) iP s z "z
Title: 010.
Date:
Approved: �
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Date:
Page 7 of 7
"CITY"
The City of Richmond, Indiana by
and through its Board of Aviation
Commissioners
Dave Stevens, resident
Date: // ZZ
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