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HomeMy Public PortalAbout057-2023 - 2023 Farmland Rental Sublease Agreement between the EDC and Robert Toschlog SUBLEASE 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 ROBERT TOSCHLOG, hereinafter referred to as "Tenant". WITNESSETH: WHEREAS, the City of Richmond, Indiana is the Owner of certain undeveloped portions of the Midwest Industrial Park, described as Tract 1 and Tract 2, in Exhibit A attached hereto(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, 1.998 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 contained in the Real Estate described in Exhibit A, but excepting therefrom, Lot 1, Phase 3 of the Midwest Industrial Park, being 249 tillable acres after the exception of Lot 1; WHEREAS, Tenant desires to rent the aforesaid 249 tillable acres for agricultural purposes, subject to Landlord's right to develop the industrial park, NOW, THEREFORE, the parties mutually agree as follows: 1. The Landlord subleases to Tenant the tillable acreage of Real Estate described in Exhibit A attached hereto, but excepting therefrom Lot 1, Phase 3 in the Midwest Industrial Park, or 2.49 tillable acres, 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 reserved right to develop the Real Estate as more fully set out below. The tillable acreage recited in this paragraph is the best estimate Contract No. 57-2023 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 151h day of December of each lease year. As part of this sublease agreement, Landlord also grants to Tenant possession and the right to use the silver barn located at .1.587 Round Barn Road, Richmond, Indiana (the "Barn") for a period of time to and including February 29, 202.4, for no additional rent, 2. Tenant acknowledges and agrees that neither the Economic Development Corporation of Wayne County, Indiana nor the City of Richmond shall be responsible for the damage or loss to any personal property located upon the demised premises and that it shall be the responsibility and requirement of the Tenant to carry casualty insurance upon any of Tenant's personal property used or located upon the demised premises. Tenant further agrees that he shall carry liability insurance in the amount of at least One Million Dollars ($1,000,000.00). Tenant shall provide certificates of insurance to the Economic Development Corporation of Wayne County, Indiana and the City of Richmond documenting the required insurance coverages. 3. The term of this sublease shall be for the 2023 crop year, terminating on December 31, 2023, provided that Tenant shall have possession of the Barn to and including February 29, 2024. 4. The Tenant shall pay Landlord rent for the tillable acreage at the rate of$250.00 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 2 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. 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, 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 1.5th 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." 5. 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 3 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. 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. 6. 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 ,Sz'. Low Deficiency Payments from the Farm Service Agency to Tenant. 7. This sublease shall be binding upon the heirs, successors and assigns of the respective parties. 8. This agreement supersedes all prior agreements, oral and written, among the parties hereto with respect to the subject matter hereunder. 9. This agreement may be executed in one or more counterparts, each of which shall 4 be deemed an original, but all of which together shall constitute one and the same instrument. 10. 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. TENANT: ROBERT TOSCFILOC1 Date: "2-0 .3 By -40..e-ere-40,fr Robert Toschlog LANDLORD: ECONOMIC DEVELOPMENT CORPORATION OF WAYNE COLI TY, INDIANA D ttL JJ- -14)„,..2_2 - By . Valerie Shaffer, Presid APPROVED BY OWNER: CITY OF RICIIMOND, INDIANA by and through its Board of Public Works and Safety Date: „:3 ?-2 By ,j(77/L' Vicki Robinson, President APPROVED BY MAYOR: Date: 0 tt:' 2,8 sa-63 . Sn or 5