8.4. SR 01-21-2014 City of
Elk - Request for Action
River O.
To Item Number
Mayor and City Council 8.4
Agenda Section Meeting Date Prepared by
General Business January 21, 2014 Cal Portner, City Administrator
Item Description Reviewed by
Approve Draft Letter for Houlton-Olson Farm
Property Assessments Reviewed by
Action Requested
Review and approve by motion a draft letter outlining the terms for the Houlton Property assessments.
Background/Discussion
The city is expected to soon receive notice regarding the grant approval from the State of Minnesota for
the purchase of the Houlton-Olson Farm.
The property has deferred assessments for water and sewer trunk that will be paid off at the close of the
sale. The city and the representative for the Houlton-Olson family have come to terms on a tentative
agreement for payment of the assessments.
The letter addresses the terms of the agreement as the purchase is completed.
Financial Impact
N/A
Attachments
■ Draft letter (provided at meeting)
P0WIAEO 0
NaA f RE]
January 17, 2014
Mr.Jeff Dotseth
Jeff Dotseth &Assoc. Realty, Inc.
26219 Fremont Dr.
Zimmerman, MN 55398
Dear Jeff:
This letter serves to outline the agreement bet\Veeij ¢he City of Elk River and the Houlton-Olson
Family with regard to the deferred trunk water andawer assessments.
The Ell-,River City Council consensus on;the assessments is that'they need to be paid'consistent
with the original assessment policy. That wAftanding, the cry would be willing to reduce the
outstanding assessment amount due frog the"'Ipuiton-Olson Fni1y by the amount earned over
seven (7) years of leasing the tillable acreage at the current lease rate.
The current lease is 165 acies or 517x10 total deferred assessment reduction
would amount to $120120.
The agreement is contingeizt Ripon any and all grant requirements allowing the city to lease the
property for seven (I),years follo.Nving'the existing Haazlton-Olson Family lease agreement,which
expires of December 31,;.2014.
The remain assessment pmcjpal ant iterest,less the $120,120,will be paid by the Houlton-
Olson Fainil before closing the sale of the property.
Sincerely,
Calvin P. Portner
City Administrator
AGRICULTURAL LEASE AGREEMENT
THIS LEASE,AGREEMENT, made and entered into effective November 1, 2013,
by and between Houlton Olson Fam'lly LILLP., hereinafter LANDLORD, and Sherman
Lehn, hereinafter called TENANT.
The undersigned Landlord hereby agrees to lease to the undersigned Tenant the
.1!65 acres of agricultural property which Tenant has previously 'leased from Landlord,
located in Sherburne County, Minnesota, located on three parcels with the f6llowing
parcel identification numbers (said -leased property to include only tillable fields located
upon the following parcels but excluding any use of buildings or non-tillable land located
on said pa rc.els)(hereinafter sometimes referred to as the "property" or"premises"):
75004-1000;
75--133-4200: and
75-402-0032..
The term of this Rental Agreement shall be fourteen (14) months, commencing
on November 1, 2013 and-terminating.on December 31, 2014.
Rent shall be calculated at the fixed amount of$104.00 per acre for 165 acres for
a total term rent of $17,160.00. One half of the term rent shall be due and payable on
or before May 11, 2014 and the balance due on or before October 15, 2014,
Furthermore, the Parties hereby covenant and agree:
1. SUBLET/UNDERLET.- No part of the premises ;shall be sublet or underlet
without the-wrifte.n permission of the Landlord,
2. HUNTINGIRECREATIONAL RIGHTS: Said lease is for agricultural
purposes only. No part of this agreement shall be construed to grant the Tenant rights
to hunt on the property or allow others to hunt on the property without the written
permission of the Landlord.
ermi
3. COVENANTS TO HOLD HARMLESS, Except in the case of the gross
negligence of the Landlord, its -agents, or its employees, the Tenant agrees to save,
hold harmless, and defend the Landlord against any liability. for damages, including
reasonable attorneys fees and costs, to any person or property in or about *the
premises, The Landlord shall not be. liable to the Tenant, its agents, e.mployees,
representatives, customers, or invitees for any persona! injury, death, or .damage to
property caused by theft, accident, water, gas, electricity, fire, Machinery or for any
other cause occurring on or about the premises. All property kept, stored, or maintained
on the premises shall be. so kept, stored, or maintained at the sole risk of the.Tenant.
...........
4. WAIVER: The waiver of any term of this contract at any time shall not be
deemed a waiver on any other occasion of any other term.
5, ATTORNEY'S FEES; If any action at law or in equity shall be brought in
court to recover any rent under this rental agreement or for or on account of any breach
of or to enforce or interpret any of the covenants, terms, or condition of this lease or for
the recovery of the possession of'the premises, the Landlord shall be entitle to recover
from the Tenant as part of the Landlord's costs, his reasonable attorney's fees, the
amount of which shall be fixed by the court and shall be made a part of any judgment or
decree rendered,
s. CAPTIONS, HEADINGS OR TITLES. All captions, headings,.or titles in
the paragraphs or sections of this Rental Agreement are inserted for convenience of
reference only and shall not constitute a part of this lease as a limitation of the scope of
the particular paragraphs or sections to which they apply.
7. MINNESOTA LAW: This lease shall be construed and enforced in
accordance,with the laws of the state of Minnesota,
Dated as of the date first set forth above.
LANDLORD: TENANT:
Houlton Olson Family LLLP
By Hou.iton Olson Family LLC
By
William Houlton Its President Sherman Lehn
A.General Partner 97220 138"Ave, N.
1801 Main Street NW Dayton, MN 55327
Elk River, MN 55330