HomeMy Public PortalAbout015-2010 - Airport - LEASE - Jordan FarmsLEASE
THIS LEASE made this _181h _ 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 Phil
Jordan & Sons, 5145 Wolfe Road, Richmond, Indiana, hereinafter referred to as "Lessee,"
WITNESSETH:
WHEREAS, said City is the owner of certain land known as the "Airport Property",
totaling approximately 651.88 acres, which includes 50.3 acres of land known as the "Farm
Premises" in Boston Township, Wayne County, Indiana, Described as follows, to -wit:
Being a part of the Southwest Quarter of Section 25, Township 13 North,
Range 1 West in Boston Township, Wayne County, Indiana, and being more
particularly described as follows:
Beginning at an iron rod set at the northwest corner of said Southwest
Quarter, and running thence, from said beginning point, south 89 degrees, 46
minutes, and 40 seconds east, along the north line of said Southwest Quarter,
1036.59 feet to an iron rod set; thence south 0 degrees, 01 minute, and 10
seconds east, along an existing fence line 1100.15 feet to an iron pipe set;
thence south 55 degrees, 28 minutes, and 25 seconds west 1258.64 feet to an
iron pipe set on the west line of said Southwest Quarter; thence north, along
said west line, (assuming that said west line runs north and south ) and along
an existing fence line on said west line, 1817.55 feet to the place of beginning
containing an area of 34.723 acres.
AND ALSO:
Being a part of the Southwest Quarter of Section 25, Township 13 North,
Range 1 West in Boston Township, Wayne County, Indiana, and being more
particularly described as follows:
Beginning at an iron rod set on the north line of the Southwest Quarter of said
Section 25, said point being 1036.59 feet south 89 degrees, 46 minutes, and
40 seconds east of an iron rod set at the northwest corner of said Southwest
Quarter, and running thence, from said beginning point, continuing south 89
degrees, 46 minutes, and 40 seconds east, along said north line, 840.08 feet to
a solid iron set; thence south 0 degrees, 02 minutes, and 10 seconds east
518.99 feet to an iron pipe set; thence south 55 degrees, 28 minutes, and 25
seconds west 1019.62 feet to an iron pipe set in an existing fence line; thence
north 0 degrees, 01 minute, and 10 seconds west, along said fence line,
1100.15 feet to the place of beginning, containing an area of 15.614 acres.
Contract No. 15-2010
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SUBJECT TO: The right-of-way of the Bulla Road, and any easements of
record.
As a result of installation of an Omni Direction Alignment Light System, eight and
three tenths acres of the above -described 50.3 acres of land have been permanently removed
from production.
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 50.3 acres, and exclude any and all improvements
located on said Airport Property. The parties do hereby acknowledge and agree to 42 acres
of tillable acreage under this Agreement. 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 to conduct his farming operation only in such manner so as to
not interfere in any way with the operation of the Airport.
4. 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
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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.
5. 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.
6. 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.
7. The Lessee agrees to pay to the City as rent for the Farm Premises the Total
annual sum of Nine Thousand Three Hundred Twenty-four Dollars and Zero Cents
($9,324.00) ($222.00 per acre x 42 acres). The annual rent will be divided into two (2)
payments as follows: fifty percent (50%) of the annual rent on or before March I't, and the
remaining fifty percent (50%) of the annual rent on or before November I't. 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.
8. 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. A copy of testing shall be provided to the Airport Manager.
SPECIFIC AGREEMENTS OF LESSEE:
9. 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 farmland.
(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.
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(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 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.
(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,
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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 farmstead 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) Not operate or park any equipment on any runway, taxiway or
restricted zones. Access through 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.
(s) Ensure that all cultivation shall be limited to an area to a minimum
right angle distance of twenty-five (25) feet or more from all edges of the paved surface of all
runways and taxiways of the Richmond Municipal airport and, further, that no cultivation or
growing of crops shall be done in the approach zones of the runways.
MISCELLANEOUS PROVISIONS:
10. 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.
11. 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.
12. This Agreement shall be controlled by Indiana law and shall be binding upon
the parties, their successors and assigns.
13. 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.
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14. 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.
15. 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.
16. 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.
17. 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"
Phil Jordan & Sons
LO
Date: March 23, 10
Approved:
S/S Sarah L. Hutton
Sarah L. Hutton, Mayor
The City of Richmond, Indiana by
and through its Board of Aviation
Commissioners
_S/S Darlene 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
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