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HomeMy WebLinkAboutRes.3436.10-18-2021 BILL NO. 21-156 RESOLUTION NO. 3Y24_ A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT WITH LARRY EFTINK FARMS, AT THE CAPE GIRARDEAU REGIONAL AIRPORT BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU, MISSOURI, AS FOLLOWS: ARTICLE 1 . The City Manager, for and on behalf of the City of Cape Girardeau, Missouri, is hereby authorized to execute a five-year agricultural Lease Agreement with Larry Eftink Farms, at the Cape Girardeau Regional Airport . The Agreement shall be in substantially the form attached hereto, which document is hereby approved by the City Council, and incorporated herein by reference, with such changes therein as shall be approved by the officers of the City executing the same . PASSED AND ADOPTED THIS ia- -- u DAY OF eahZ..eir , 2021 . /0/ , %PIO Bob Fox, Mayor ATTEST: S/AINi,1,1 *0 Bruce Taylor, Deputy City Clerk %. .....,„, % ZW:e" A/ • lig'IALII t`-'-- p AGRICULTURAL LEASE This Lease Agreement, made and entered into this day of , 2021, by and between the City of Cape Girardeau, Missouri, a Municipal Corporation, hereinafter referred to as "Lessor", and Larry Eftink Farms, hereinafter referred to as "Lessee", WITNESSETH: In consideration of the rent to be paid by Lessee to Lessor and in further consideration of the mutual promises and conditions herein contained, Lessor and Lessee do hereby make and enter into the following agreements: 1. For period beginning January 1, 2022, and ending December 31, 2026, Lessor shall rent to Lessee all the land shown on Exhibit"A"which is approximately three-hundred forty (340) acres, more or less, except as provided in Paragraph 2A and 2B. 2A. Specifically excluded from the Lease is all land which is used for aeronautical and aeronautical-related purposes including but not limited to, Object Free Areas, all clear zones, instrument landing systems, roadways, runways, aprons, taxiways, parking lots, electrical substations, drainage ditches, sewage disposal facilities and building sites. Also, Lessor does make available to Lessee 10.98 acres of property labeled as "Pyro Area" at no cost to Lessee with the understanding that the crops may be destroyed through activities resulting from the annual air festival. This acreage amount is not included in the total acreage noted in Paragraph 1. Lessor does not represent to Lessee the exact acreage of land which is available for agricultural purposes, and Lessee agrees that he has made, and relied upon his own estimate to the tillable acreage. 2B. It is understood and agreed by and between the parties hereto that some of the leased land noted in Exhibit"A", including, but not limited to Tracts 1, 14, and 8, is prone to flooding. It is also agreed to that it is the responsibility of the Lessee to research and understand which of the leased acreage at the Airport may flood and Lessee acknowledges this consideration was given when preparing his/her bid. The Lessor reserves the right to determine crop row direction and any other necessary adjustments to improve airport storm water drainage. Lessor shall not be responsible for loss of crops resulting from any airport flooding conditions. 3. Lessee may farm the real ,,.state herein leased, and produce crops or agricultural products of any and all kind, with the exception of flooded rice crops, so long as the crops remain less than five (5)feet in height and the growing of the same does not interfere with the safe operation of any and all types of aviation conducted at the Regional Airport, and does not otherwise interfere with the aeronautical facilities for aviation purposes, including crops or field preparation that may be considered as a wildlife attractant. Lessee is required at all times to maintain constant communication via VHF radio with the Air Traffic Control Tower to ensure safe operation of movements for the farm operation with regard to aircraft movements. Lessee shall be responsible for obtaining a two-way VHF transceiver to facilitate this requirement. Any incident found in which the Lessee is not utilizing radio communication with the Control Tower shall be grounds for termination of this lease agreement. 4. It is understood and agreed by and between the parties hereto that no crops may be grown within the runway or taxiway safety areas, or obstacle free areas, nor in such a way as to restrict the line of sight between runways, or cause interference with navigational or visual approach aids, nor may crops be grown on land inside the ditches which are adjacent to the runways and taxiways, or nearer than ten (10) feet from any such ditch, runway, taxiway, road, building, fence or other nonagricultural facility. 5. Lessee agrees to pay to Lessor, during the term of this lease, rental payments in the amount of$202.22 per acre for each calendar year of this agreement for the real estate herein leased equaling a total of$342,762.90 over the five year period. The annual rental payments of$68,552.58 will be payable on the fifth (5th) day of January immediately following the close of each crop year as follows: Crop Year Due Date for Rental Payment - 2022 January 5, 2023 2023 January 5, 2024 2024 January 5, 2025 2025 January 5, 2026 2026 January 5, 2027 Lessor may reduce the area to be farmed as shown on Exhibit "A", if it is necessary to do so for the proper operation, marketing, and development of the airport. In the event of a reduction by Lessor of the area to be farmed by Lessee, the rent to be paid by Lessee to Lessor shall be reduced proportionately for the number of acres by which the area is reduced by Lessor. 6. Lessee shall keep and hold harmless Lessor, its employees, agents, servants and assigns from and against any and all claims, demands, suits,judgments, costs and expenses asserted by any person or persons, including agents or employees of Lessee, by reason of death or injury to persons, or loss or damage to property, resulting from Lessee's operations hereunder, or as a result of anything claimed to be done or omitted to be done by Lessee, his agents or employees hereunder. Lessee shall procure and maintain in effect for the term of this lease agreement, liability insurance in an amount not less than $441,130.00 per person and $2,940,868.00 for any one accident involving injury, including death or property damage, to more than one person, plus any increases in those limits as set out in Sec. 537.610 RSMo. Lessee agrees that he will abide by all laws, provisions and requirements of Lessor, the State of Missouri, or the United States Government or any agency thereof, pertaining to the use and operation of said airport. In the event a dispute should arise between the parties hereto as to whether a particular crop or agricultural use made by Lessee is unsafe for aeronautical purposes, the rules and regulations of the Federal Aviation Administration shall be controlling in settling such dispute. Lessee agrees to lease the property subject to FAA regulations which are incorporated herein and made a part hereof. Lessee further agrees not to make any use of the premises which would be harmful to the fertility of the soil. Lessee further agrees not to construct any buildings or improvements upon the leased land. Lessee agrees that he will not maintain any nuisance or unsafe condition which would interfere with the aeronautical use of said premises, and that should any such nuisance or unsafe condition occur, that Lessor has the right to take immediate action without notice to abate the nuisance or unsafe condition. 7. In the event of a breach of any of the covenants or agreements of this Lease, the Lessee shall upon written notice of said breach, remedy the breach, and if said breach shall not be corrected within five (5) days, this Lease may be immediately terminated at the option of Lessor, and Lessor may require Lessee to immediately vacate and relinquish possession of said premises. It shall be sufficient to satisfy the written notice requirement, a. for Lessor to mail a copy of said Notice to Lessee at the following address: PO Box 244 Kelso, MO 63758 by ordinary mail, in which case the said Notice shall be deemed received by Lessee when deposited in the United States mail with postage pre-paid, or b. for Lessor to hand deliver a copy of said Notice to Lessee. 8. Any failure on the part of the Lessor to enforce any term of this lease shall not be construed as a waiver of any future breeches by the Lessee. 9. On the termination of this Lease, for any reason, Lessee shall immediately relinquish peaceable possession of said premises without notice from Lessor, and shall return said premises to Lessor in as good condition as when received. 10. Lessee further covenants and agrees: a. To use the premises for agricultural purposes only. b. To harvest and remove all crops in due season. c. Lessee shall be responsible for mowing and maintaining an area of 10' on all sides of existing drainage ditches, field edges, roads, buildings, fences, and/or other nonagricultural buildings to keep them cleared of weeds and debris, and to restore and maintain adequate field drainage. Lessee shall be responsible for new ditching as required to ensure proper field drainage. This statement does not pertain to Airport storm water drainage. Lessee is only responsible for ditching necessary for in-field agricultural purposes. Lessee shall receive written authorization from Lessor prior to any new ditching of leased property. d. To destroy all noxious weeds and nuisances in compliance with Federal, State and Local law. e. To commit no waste or damage on said premises and to permit none to be done. f. Lessee has been provided the results of March 28, 2017, soil samples tested by the County Extension Service. Lessee shall also take soil samples to be tested by the County Extension Service prior to the 2020 Crop Year. In both cases, Lessee shall apply lime and fertilizer, as recommended by the County Extension Service based on each test, at Lessee's expense. Lessee will supply the Lessor with a copy of the County Extension Service Soil Testing Report, where necessary, and all receipts of tonnage and form of payment on lime purchases. Such report and receipts shall be submitted to the airport manager's office not later than July 1, 2022, for the 2022 Crop Year, and not later than December 30, 2024, for the 2025 Crop Year. g. The Lessee will be responsible for property taxes assessed by the County on the leasehold interest value of the lease. h. Lessee further agrees that no burning of crop stubble will be conducted on the premises without prior written approval of the Lessor. i. Lessee will be responsible for spraying fence-rows at least annually, or at any other time when requested by the airport manager, to maintain said fence rows free from noxious weeds and brush. Lessee will provide the labor, chemicals and equipment necessary to spray the fence-rows. j. During planting and harvesting season, Lessee will be responsible for removing any equipment brought onto the leased property for agricultural use in a timely manner, not to exceed ten (10) days. Any and all equipment shall be removed from airport property at least three days prior to any airport event. When out of the planting & harvesting season, no agricultural equipment shall be stored on airport property. 11. Lessee takes possession of the leased premises and performs the services to be rendered as an independent contractor, subject to the usual hazards of operating a farm, and assumes all risks of injury or damage in pursuance of his farming the land herein leased. 12. Lessor covenants that the Lessee shall peaceably hold and enjoy said premises during said term without interruption by Lessor, or any person rightfully claiming under him, except as herein provided. 13. This lease shall not be assignable nor any part of the premises sublet by Lessee without the prior written consent of Lessor. Lessee, under the terms of this agreement, agrees to cooperate with Lessor in making available to Lessor and future Lessees during the fall of the last year of Lessee, under the terms of this agreement, agrees to cooperate with Lessor in making available to Lessor and future Lessees during the fall of the last year of this lease, those portions of the leased premises where crops have been harvested so that future Lessees can prepare for planting that land not used by this Lessee for crops. 14. The Lessor may also negotiate with the Lessee for any special services, such as land preparation for special events, not otherwise covered by other terms of this Lease. 15. Lessor shall have the landlord's lien provided by law as security for the rental herein specified, and if the Lessee shall fail to cultivate said premises as herein agreed, or shall fail, in the sole determination of Lessor, to keep any of the other covenants in this Lease contained, Lessor, at the Lessor's election, may terminate this lease. This lien shall cover crops on the land herein leased being located in Section 34, 35, 36 Township 30 North, Range 13 East, Fifth Principal Meridian in Scott County, Missouri. In the event of a bankruptcy filing for or against Lessee, Lessee shall consider this lien a priority claim. This Lease shall be binding upon the parties hereto, their executors, administrators, heirs, successors and assigns. IN WITNESS WHEREOF, the parties have hereunto caused this instrument to be executed on the day and year first above written. CITY OF CAPE GIRARDEAU, MISSOURI afro ICE ,E ATTEST: 010 *sof1� � tr,. CPA. l� CO ,feeri- ,, _Pei ity Clerk ''''' # L ink, /ruik Farms ATTEST: