4.10 SR 02-06-2017
Request for Action
To Item Number
Mayor and City Council 4.10
Agenda Section Meeting Date Prepared by
Consent Agenda February 6, 2017 Tim Sevcik, Parks Maintenance Superintendent
Item Description Reviewed by
William H. Houlton Conservation Area Farm Lease Michael Hecker, Parks and Recreation Director
Agreement
Reviewed by
Cal Portner, City Administrator
Action Requested
Approve, by motion, a lease agreement with Sherman Lehn to allow for continued agricultural purposes
on city property.
Background/Discussion
In 2016, the city entered into a one-year lease agreement with Sherman Lehn for agricultural purposes at
the William H. Houlton Conservation Area. Mr. Lehn cultivated 165 acres of existing agricultural fields
on the property for the fixed amount of $75.00 per acre for a total term rent of $12,375.
In November of 2016, the Friends of the Mississippi River (FMR) and U.S. Fish and Wildlife Service
conducted a wetland restoration within the Conservation Area consisting of approximately 5 acres. As a
result, the net acreage of tillable land for 2017 will be 160 acres for a lease fee of $12,000.
The tillable land will be transitioned to native mixed height mesic prairie following the 2017 growing
season as a result of grant funds obtained by FMR. It is to the benefit of the native prairie restoration to
continue agricultural cultivation until restoration can proceed.
Financial Impact
The city will receive the fixed amount of $75.00 per acre for 160 acres for a total lease fee of $12,000.00.
The revenue is planned to be used for continued improvements needed for the property.
Attachments
Agricultural Lease Agreement
AGREEMENT 2017-01
AGRICULTURAL LEASE AGREEMENT
THIS LEASE AGREEMENT (“Lease”), made and entered into effective January 15,
2017, by and between the City of Elk River, Minnesota, hereinafter LANDLORD, and Sherman
Lehn, hereinafter called TENANT.
The undersigned Landlord hereby agrees to lease to the undersigned Tenant 165 acres of
agricultural property which is identified as Parcel ID No. 75-800-0075 (hereinafter sometimes
referred to as the “Property” or “Premises”):
The term of this Lease shall be eight (8) months, commencing on March 1, 2017, and
terminating on November 1, 2017.
Rent shall be calculated at the fixed amount of $75.00 per acre for 160 acres for a total
term rent of $12,000.00. One half of the term rent shall be due and payable on July 15, 2017,
and the balance due on or before October 15, 2017.
Furthermore, the Parties hereby covenant and agree:
1. Care, Maintenance, Use Covenants. Tenant covenants that Tenant will:
(i) farm and care for the Premises in a good husband-like manner, and in accordance with good
farming and soil conservation practices; (ii) establish and maintain a fifty (50) foot buffer strip
from the top of slope along the Elk and Mississippi Rivers, (iii) not commit or permit waste
thereon; (iv) carefully protect all improvements of every kind that are now on the Premises;
(v) promptly at the expiration of the term of the Lease yield up possession of the Premises,
without notice, unto the Landlord in as good condition and repair as the Premises now is or may
be at any time during the continuance of this Lease, ordinary wear and tear excepted; and
(vi) keep the Premises free from all weeds and destroy all weeds along the fences and around all
improvements thereon.
2. Sublet/Underlet. No part of the Premises shall be sublet or underlet without the
written permission of the Landlord.
3. Hunting/Recreational Rights. This Lease is for agricultural purposes only. No
part of this Lease 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.
4. Possession/Termination. Landlord reserves the right to demand possession of all
or any portion of the Premises at any time for any purpose and to terminate this Lease.
Whenever Landlord takes possession of all or any portion of the Premises or the Lease is
terminated by Landlord, the Tenant shall plow under all crop residue and harrow the surface area
smooth, within safety areas. In such events, Landlord shall pay reasonable damage for growing
crops taken, an agreed value for work done on planted land, except in the event the Lease is
terminated as a result of an event of default by Tenant. In no event will livestock be permitted
on the Premises for any reason.
5. Use. Landlord and Tenant shall, as applicable, abide by and conform to all
statutes, ordinances, rules and regulations of duly constituted public authorities relating to the
use or occupancy of the Premises.
6. Insurance. Tenant shall procure and maintain general liability insurance against
all claims for injuries and damages occurring on the Premises, such insurance to be in amounts
approved by Landlord. Such insurance shall name Landlord as an additional insured and shall
contain a provision that the Landlord will be notified in writing thirty (30) days prior to any
proposed policy cancellation.
7. Environmental Matters and Indemnification. The term "Environmental Laws"
shall mean all federal, state and local laws, including statutes, regulations, ordinances, codes,
rules and other governmental restrictions and requirements relating to the discharge of air
pollutants, water pollutants or process waste water or otherwise relating to the environment or
hazardous substances, including but not limited to the Federal Solid Waste Disposal Act, the
Federal Clean Air Act, the Federal Clean Water Act, the Federal Resource Conservation and
Recovery Act of 1976, the Federal Comprehensive Environmental Responsibility, Cleanup and
Liability Act of 1980, regulations of the Environmental Protection Agency, regulations of the
Nuclear Regulatory Agency and regulations of any state department of natural resources or state
environmental protection agency now or at any time hereafter in effect.
In order to induce the Landlord to enter into this Lease, the Tenant covenants, represents
and warrants to the Landlord that while this Lease is in effect Tenant will comply with all
applicable Environmental Laws.
Tenant shall indemnify Landlord against all claims, demands, charges, damages, orders,
judgments, citations, or costs, including reasonable attorneys’ fees which Landlord may incur by
reason of any violation of Environmental Laws occurring on the Premises for which Landlord
may become responsible by reason of Tenant’s use of the Premises.
8. Waiver of Claims. All property belonging to Tenant shall be there at the risk of
Tenant only, and Landlord shall not be liable for any damage thereto and Tenant waives all
claims against Landlord for damages to persons or property sustained by Tenant, except those
claims arising from the gross negligence of Landlord, its agents or employees.
9. 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, employees, representatives, customers, or invitees for any personal 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.
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10. Events of Default/Remedies. It shall be an “Event of Default” under this Lease
if Tenant:
(a) Fails to pay rent when due.
(b) Fails to comply with all of Tenant’s covenants herein.
Landlord shall have the right to terminate this Lease if Tenant fails to cure an Event of Default
within ten (10) days written notice. If Tenant fails to cure an Event of Default within the cure
period Landlord shall have the right to terminate this Lease and exercise any remedies available
under applicable law to regain possession of the Premises. In the event that Tenant is in default
under this Lease and the Lease is terminated and Tenant fails to vacate the Premises, the
Landlord shall be entitled to recover all costs and expenses including reasonable attorney’s fees
incurred by Landlord in enforcing the terms of this Lease and regaining possession of the
Premises.
11. 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.
12. Attorneys’ 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.
13. Captions, Headings or Titles. All captions, headings, or titles in the paragraphs
or sections of this Lease 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.
14. 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.
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LANDLORD: TENANT:
CITY OF ELK RIVER
Sherman Lehn
By 13601 Xanthus Lane
John J. Dietz Rogers, MN 55374
Mayor Cell: 763-350-4069
By
Tina Allard
City Clerk
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