HomeMy Public PortalAbout195-2023 - I&D - La-Lyn Farms - Lease for Farm Ground 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 LA-LYN FARMS, INC., an Ohio
corporation for profit, hereinafter referred to as "Tenant".
WITNESSETFI:
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, 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, id 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, located in Phase 3 of the Midwest Industrial Park, being 287.72 tillable
acres;
WHEREAS, Tenant desires to rent the aforesaid 287.72 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, located in Phase 3 in the Midwest Industrial Park, or 287.72 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 of the parties. The
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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 15th 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 1587 Round Barn Road, Richmond, Indiana (the "Barn")
commencing on March 1, 2024, 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 2024 crop year, terminating on December
31, 2024.
4, The Tenant shall pay Landlord rent for the tillable acreage at the rate of$376.00
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.
Landlord reserves the right to enter upon the leased premises for the purpose of
making inspections, sfui-veys, 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 June 15th of any
calendar year; for all crop damage or withdrawal of acreage occurring after June 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."
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 occ,rs 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
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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 & Low
Deficiency Payments from the Farm Service Agency to Tenant, if applicable.
7. This sublease shall be binding upon the heirs, successors and assigns of the
respective parties.
8. This eement 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
be deemed an original, but all of which together shall constitute one and the same instrument.
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10. This agreement shall be construed and enforced pursuant to the laws of the State of
Indiana.
11. Tenant represents that all necessary action has been taken to authorize the execution
of this sublease agreement by the undersigned signatory.
IN WITNESS WHEREOF, the respective parties have caused this agreement to be
executed on the dates shown below,
TENANT:
LA-LYN FARMS, INC., an Ohio corporation for profit
Date: it 624 By #
t hiyieck y'ut
Title 1/f.
LANDLORD:
ECONOMIC DEVELOPMENT CORPORATION
OF WAYNE COUNTY, INDIANA
Date: I I By 1,776/ 3 (71/7
Valerie Shaffer, President
APPROVED BY OWNER:
CITY OF RICHMOND, INDIANA by and through
its Board of Public Works and Safety
Date: //,---,16-2-?? By / 11
Vicki Robinson, President
APPROVED BY MAYOR.
Date: 3 By (
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. Sno ,‘"FMtir,
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