4.7 SR 05-02-2022Request for Action
To Item Number
Ma Tor and CinT Council 4.7
Agenda Section Meeting Date Prepared by
Consent May 2, 2022 Cal Pormer, Cit�T Administrator
Item Description Reviewed by
Sludge Land Lease Agreement: Keith Weber Peter Beck, Cit�r Attorne`T
Reviewed by
Justin Femrite, Public Works Director
Zack Carlton, Community Development Director
Action Requested
Approve, byT motion, a lease agreement with Keith Weber to farm the former sludge land propertyT o`vned by the
Wastewater Department.
Background/Discussion
The Wastewater Department owns roughly 120 acres of tillable land which `vas used to dispose of biosolids from
following sewage treatment The city formerly had an agreement with Dave Pearson to farm the land not being
used for biosolids. Unfortunately, Mr. Pearson passed awayT earlyT last yTear. He did have a contingencyT plan in
place to harvest his crop.
Keith Weber took over the crop last yTear and has expressed an interest in continuing to farm the land. The new
lease accounts for the land swap `vith Copart of Connecticut and with regard to use changes no longer required as
biosolid application is no longer needed.
Financial Impact
N/A
Mission/Policy/Goal
The Elk River Mission — Meet changing needs
Attachments
■ Agreement
The Elk River Vision
A 2a�elcolning co�nlnunity 2a�ith T evolutiona� y and spizzted T esou� cefulness, exceptional
se�vice, and coln�nunity engagelnent that encou�ages and ins�iz•es pTo�pe�zty.
rowEREo ar
�I'1 ����
Up�iited.• August 2020
LEASE
TffiS LEASE ("Lease"), entered into this 2nd day of May 2022, by and between the
CITY OF ELK RIVER, whose address is 13065 Orono Parkway, Elk River, Minnesota
55330 (hereinafter referred to as the "City") and Keith Weber, whose address is 24300 129�'
Avenue North Rogers, MN 55374 (hereinafter referred to as the "Lessee").
WITNESSETH:
1. Lease Term. City hereby leases to the Lessee 120 tillable acres located within
the property legally described in the attached Exhibit "A" and depicted on the map attached
hereto as "Exhibit B" and made a part hereof ("Leased Premises"), from the 2nd day of May
2022 to the 30�' day of December 2023 ("Term"). To avoid hardship, the City will allow Lessee
additional time up to 5 months, to harvest any existing crop outside of said Term.
2. Rent• Lessee, in consideration of the leasing of the Leased Premises, hereby
covenants and agrees to pay to the City annual rental of $15.00/acre ("Rent") for each year
during the term of this Lease. The Rent shall be payable by Lessee upon execution of this
Lease in one (1) annual payment of $1,800.00 due and payable on or before December 1 of
each year during the term of this Lease.
3. Care• Maintenance. Use Covenants. Lessee covenants that Lessee will:
(i) farm and care for the Leased Premises in a good husband-like manner, and in accordance
with good farming and soil conservation practices; (ii) not commit or permit waste on the
Leased Premises; (iii) carefully protect all improvements of every kind that are now on the
Leased Premises; (iv) promptly at the expiration of the term of the Lease yield up possession
of the Leased Premises, without notice, unto the City in as good condition and repair as the
Leased Premises now is or may be at any time during the continuance of this Lease, ordinary
wear and tear excepted; and (v) keep the Leased Premises free from all weeds and destroy all
weeds along the fences and around all improvements thereon.
4. Hunting/Recreational Rights• This Lease is for agricultural purposes only. No
part of this Lease shall be construed to grant Lessee rights to hunt on the Leased Premises or
allow others to hunt on the Leased Premises without the written permission of the City.
5. Use of Leased Premises. The City and Lessee 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 Leased Premises. Lessee acknowledges that
the City has the right to limit crops in specific areas to avoid affecting abutting parcels or
right of way.
6. Possession/Termination.
(a) By City. City reserves the right to demand possession of all or any
portion of the Leased Premises at any time for any purpose and to terminate this
Lease. Whenever the City takes possession of all or any portion of the Leased
Premises or the Lease is terminated by the City for any reason (except in the event
the Lease is terminated as a result of an event of default by Lessee), Lessee shall plow
under all crop residue and harrow the surface area smooth. In such events, the City
shall pay reasonable damage for growing crops taken, an agreed value for work
done on planted land.
(b) By Lessee. Lessee shall have the right to terminate this Lease at any
time by giving written notice to City. Upon doing so, Lessee shall plow under all
crop residue and harrow the surface smooth. Provided Lessee is not in default under
this Lease, Lessee shall have no further liability to City.
7. TaYes• Lessee shall not be responsible for personal property and real estate taxes
incurred as a result of this Lease.
8. Insurance. Lessee covenants that at Lessee's own cost and expense Lessee
will purchase and continue in force, in the names of the City and Lessee, general liability
insurance against any and all claims for injuries to persons or damage to property
occurring in, upon or about the Leased Premises during the tern of this Lease, such
insurance to be in an amount not less than One Million ($1,000,000.00) Dollars (combined
single limit personal injury and property damage). Such insurance shall be written in a
company or companies authorized to engage in the business of general liability insurance
in the State of Minnesota, and there shall be delivered to the City customary certificates
evidencing such paid-up insurance, which certificates are to be issued by the insurance
companies and which certificates shall further provide that such general liability insurance
may not be cancelled unless the City is notified in writing thirty (30) days prior to any
such proposed cancellation.
9. 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 City to enter into this Lease, the Lessee covenants, represents
and warrants to the City that while this Lease is in effect Lessee will comply with all applicable
Environmental Laws.
Lessee shall indemnify the City against all claims, demands, charges, damages, orders,
judgments, citations, or costs, including reasonable attorneys' fees which the City may incur by
reason of any violation of Environmental Laws occurring on the Leased Premises for which
the City may become responsible by reason of the City's use of the Leased Premises.
10. Subletting/Assignment. Lessee shall not sublet the Leased Premises or assign
the Lease without the express written consent of the City.
11. Damage to Lessee Pro en rtv All property belonging to Lessee, or any
occupant of the Leased Premises shall be there at the risk of Lessee or such other person only,
and the City shall not be liable for any damage thereto and Lessee waives all claims against
the City for damages to persons or property sustained by Lessee or any occupant of the Leased
Premises, except those claims arising from the gross negligence of the City, its agents or
employees.
12. Covenants to Hold Harmless. Except in the case of the gross negligence of
the City, its agents, or its employees, the Lessee agrees to save, hold harmless, and defend the
City against any liability for damages, including reasonable attorneys' fees and costs, to any
person or property in or about the Lease Premises. The City shall not be liable to the Lessee,
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 Leased Premises. All property kept, stored, or
maintained on the Leased Premises shall be so kept, stored, or maintained at the sole risk of
the Lessee.
13. Relationshi� of Parties. Nothing contained in this Lease shall be deemed or
construed by the parties hereto or by any third party to create the relationship of principal and
agent or of partnership or of joint venture or of any association whatsoever between the City
and Lessee, it being expressly understood and agreed that neither the payment of rent nor any
act of the parties hereto shall be deemed to create any relationship between the City and Lessee
other than the relationship of landlord and tenant.
14. Events of Default/Remedies. The following shall be an "Event of Default"
under this Lease:
(a) Lessee fails, neglects or refuses to make annual payment of rent at the
time and in the amount as herein provided;
(b) That any voluntary or involuntary petition or similar pleading under any
section or sections of any bankruptcy act shall be filed by or against Lessee, or any
voluntary or involuntary proceeding in any court or tribunal shall be instituted to
declare Lessee insolvent or unable to pay Lessee's debts, and the same shall not be
dismissed or discharged within thirty (30) days after notice thereof in writing given to
Lessee by the City;
(c) Lessee fails, neglects or refuses to keep and perform any of the other
covenants, conditions, stipulations or agreements herein contained and covenanted and
agreed to be kept and performed by it, and in the event such default shall continue for
a period of more than thirty (30) days after notice thereof in writing given to Lessee by
the City;
(d) Lessee makes any assignment of its property for the benefit of creditors
or should the Leased Premises be taken under a levy or execution or attachment in an
action against Lessee and such levy, attachment or assignment is not dismissed and
discharged within thirty (30) days after written notice thereof to Lessee by the City.
The City shall have the right to terminate this Lease if Lessee fails to cure an Event of Default
within ten (10) days written notice. If Lessee fails to cure an Event of Default within the cure
period, the City shall have the right to terminate this Lease and exercise any remedies available
under applicable law to regain possession of the Leased Premises. In the event that Lessee is
in default under this Lease and the Lease is terminated and Lessee fails to vacate the Leased
Premises, the City shall be entitled to recover all costs and expenses including reasonable
attarney's fees incurred by the City in enforcing the terms of this Lease and regaining
possession of the Leased Premises. The reimbursement required under Paragraph 7 shall not
apply.
15. Ouiet Possession. If Lessee shall pay promptly when due the rentals herein
agreed to be paid, and shall faithfully keep, abide by, and be bound by the conditions and
agreements of this Lease and perform the covenants hereof, the City warrants to Lessee the quiet,
peaceful, and undisturbed possession of the Leased Premises during the full term of this Lease,
except as otherwise provided herein, including Paragraph 6 hereof.
16. Attornevs' Fees• If any action at law or in equity shall be brought in court to
recover any rent under this rental agreement or for ar 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 Leased Premises, the City shall be entitled to recover from the Lessee as part
of the City's costs, its reasonable attorneys' fees, the amount of which shall be fixed by the
court and shall be made a part of any judgment or decree rendered.
17. Binding Effect. This Lease shall supersede any and all prior leases between
the parties with respect to the Leased Premises and shall extend to and be binding upon the
heirs, executors, administrators, trustees, successors, receivers and assigns of the parties
hereto.
Notice• All notices to the parties shall be sent to the addresses set forth herein and shall be
effective upon personal delivery or five (5) business days after placed in the U.S. Mail postage
prepaid.
IN WITNESS WHEREOF, the parties hereto have executed this lease as of the day and
year first above written.
CITY OF ELK RIVER
:
John J. Dietz, Mayor
And:
Tina Allard, City Clerk
LESSEE:
:
And:
EXHIBIT A
Le�al Description of Leased Premises
Tillable
107 Acre Parcel
Parcel ID 75-012-4100
Plat n/a
Sec-Twp-Rng Sec.12 T32N R26W
Legal Description EXEMPT SE 1-4 EX SW 1-4 OF SE 1-4.
Class Municipal - All Other
Occupancy NON-HOMESTEAD
Deeded Acres 120.00
Tax District ELK RIVER CITY
School District 728 - ELK RIVER
Tillable
13 Acre Parcel
Parcel ID 75-913-0010
Plat 913-CASCADE 1NDUSTRIAL PARK THIRD ADDITION
Sec-Twp-Rng Sec. 13, T32N, R26W
Legal Description OUTLOT A
Class Municipal-All Other
Occupancy NON-HOMESTEAD
Deeded Acres �����
Tax District ELK RIVER CITY
School District. 728 — ELK RIVER
EXHIBIT B
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