HomeMy Public PortalAbout178-2020 - Economic Development Corporation & Hutchings Farms - use of unused land in Midwest ParkSUBLEASE 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 HUTCHINGS FARMS, LLC, an Indiana
limited liability company, 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 14 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:
1. The Landlord subleases to Tenant the tillable acreage of said Real Estate, consisting
of approximately 118.16 acres and being more particularly identified as Tracts 1, 3, 4, 5, 8, 14, 15,
18 and 22 as shown on Exhibit A-1 and Tract 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 and subject to Landlord's
Contract No. 178-2020
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 15t' day of
December of each lease year.
2. The term of this sublease shall be for four (4) crop years beginning with the 2021
crop year and running to and through December 31, 2024.
3. The Tenant shall pay Landlord rent for the tillable acreage at the rate of $200.00
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 rent,
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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 tile
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.
5. 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 cooperate with Tenant in securing enrollment in any programs with the
Farm Service Agency which are not inconsistent with the other terms of this sublease agreement
and which require Landlord's consent.
6. This sublease 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.
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IN WITNESS WHEREOF, the respective parties have caused this agreement to be
executed on the dates shown below.
TENANT:
HUT�CHINGS FARMS, LLC
Date: By \,'
Tom Hutchings, Memt#r
LANDLORD:
ECONOMIC DEVELOPMENT CORPORATION
OF WAYNE COUNTY, INDIANA
Date: — By
l"A� I I �biI14
Valerie Shaffer, Pre'sidebW
CITY OF RICHMOND, INDIANA by and through
its Board of Public Works and Safety
Date: /�-1 /—IWV By
Vicki Robinson, President
APPROVED BY MAYOR:
Date: g1,-,7 By i
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