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HomeMy Public PortalAbout016-2010 - Airport - LEASE Mikesell FarmsLEASE THIS LEASE made this _18th day of February , 2010, 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 Mikesell Farms, New Madison, Ohio, hereinafter referred to as "Lessee," WITNES SETH: 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 493 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. 16-2010 Page 1 of 7 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 his 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 493.5 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 shall be limited to areas a minimum right angle distance of twenty-five (25) feet or more from the side edges of the paved surface of all runways and taxiways, which areas have been excluded from the calculation of the total acreage of the Farm Premises and further, that no cultivation or growing of crops shall be done in the approach zones of the runways and the following designated fields will be planted to low profile crops (soy beans, wheat, or alfalfa). Soybeans and wheat crops are to be rotated every two (2) years. Such fields are designated on the ASCS map as Field Numbers 4, 5, 6, 8, 11, 12 and clear zone areas as marked. These designated low crop fields measure 115.3 acres. Page 2 of 7 4. Lessee agrees to conduct his 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. 8. The Lessee agrees to pay to the City as rent for the Farm Premises the Total annual sum of One Hundred Nine Thousand Five Hundred Fifty-seven Dollars and No Cents ($109,557.00) ($222.00 per acre x 493.5 acres). The annual rent will be divided into two (2) payments as follows: fifty percent (50%) of the annual rent on or before March 1, 20 , and the remaining fifty percent (50%) of the annual rent on or before November 1, 20 . Thereafter payments will be due, fifty percent (50%) on or before March I't of each year and fifty percent (50%) on November I't 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 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. Page 3 of 7 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 he 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 his sole expense all the machinery, equipment, and labor necessary to farm said premises properly; and further, he will furnish at his 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. (c) Remove from the Farm Premises at his 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 three 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. (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 Page 4 of 7 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 farming 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. 0) 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. (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 Page 5 of 7 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. 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. Page 6 of 7 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" Mikesell Farms Un Date: March 1, 2010 Approved: _S/S Sarah L. Hutton Sarah L. Hutton, Mayor Date: March 8, 2010 The City of Richmond, Indiana by and through its Board of Aviation Commissioners S/S Darlen Fleming Darlene Fleming, President Larry Richards, Vice President S/S Eric Holmes Eric Holmes, Secretary _S/S Mel Bruns Mel Bruns Date: February 18, 2010 Page 7 of 7