ITEM 5.2 Martinson Lease�.n
CITY OF
0 t
MINNESOTA
DEPARTMENT TMENT I FORMATI
Request for
City Council Action
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RI I IATI I EPAF TMENT:
RE VEST R
MEETING DATE;
Public Works
City Planner Licit
28 October 2013
PRESENTER s :
REVIEWED BY:
ITEM #:
City Planner Licht
CityAdministrator Johnson
5.2 ~ Martinson Lease
AGENDA ITEM DETAILS
RECOMMENDATION:
MMENDATION:
City staff recommends approval of the lease with Chad Martinson for 2014 to allow planting crops on a
portion of Lot 1, Block 2,. Otsego City Campus.
ARE YOU SEEKING PPf VAL OF A CONTRACT? C 1S A PUBLIC HEARING REQUIRED?
UIRED?
Yes. I No.
BA R u DM TIFI ATION:
The City had entered into a lease with farmer Chad Martinson n t plant crops on areas of the City
Campus property that were also utilized for thdisposal of blosolids from theCity's Waste Water
Treatment Facilities. This lease was cancelled by the City at the end of 2012 in anticipation of the
it TR A soccer field project that would occur on most of the lands subject to the lease. Mr. Martinson
last month entered onto City property behind the City Hall/Public Works s building to plant crops to the
east of the st rrnwat r drainage pond and north of the outdoor storage area the City has enclosed with
a fence.
Planting crops on the area of the City property where Mr, Martinson has done so does relieve the City of
maintenance to prevent weed growth, Street Supervisor Brad Belair also indicates that the planting of
crops in these areas will not interfere with public Hors operations. To this end, CityAttorney Andy
MacArthur has drafted an updated lease agreement. The terns of the lease are the same as the
previous agreements although language related to bis lid disposal has been removed. The lease
continuos to provide that any damage to City property (which would include the fence that has been
installed) rust be repaired or replaced by Mr. Martinson. The topic was presented for discussion at
the Administrative Subcommittee meeting on 9 October 2013. The Administrative Subcommittee
recommends entering into a lease with Mr. Martinson subjectt rent amount reflecting more market
rates.
Whereas the original lease provided that Mr. Martinson pair the City rent of $1.00 per year, that amount
was based on theCity's need to have crops planted on the property related to the disposal of the
bls lids. No such need exists now and the City may consider a more market based schedule with rents
being known to be up t $200.00 per acre in Otsego for prime tillable property, The City parcel is
sander soil that fir. Martinson states he would only plant with winter rare (which is the current crop) or
potentially alfalfa In the future because of the lack of irrigation and risk of drought for corn or soy beans.
Mr. Martinson says that he leases other similar parcels in the area for $25.00 per acre and would offer
-to pay rent of $100.00 for this parcel.
SUPPORTING DOCUMENTS: ATTACHED NONE
Ar Draft Lease
POSSIBLE MOTION
WM---
Please word motion as ou would lik'e It to �ppear�n tin rrti�nu��e .
Motion to eater into a lease with Chad Martinson for 2014 allowing the planting of crops on a portion
of Lot 1, Block 2,. Otsego City Campus.
BUDGET INFORMATION
FUNDING: I BUDGETED: ❑ YES
NA
ACTION TAKES
a
[i APPROVED AS REQUESTED ❑ DENIED u TABLED a OTHER (Listchanges)
COMMENTS:
Draft- October 23, 2013
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE of MINNESOTA
LEASE AGREEMENT- 2014
THIS LEASE AGREEMENT is made and entered into by the City of Otsego,
Minnesota nesota M ieipa rporation (hereafter referred to as the "Lessor") Chad
Martinson (hereafter referred to as the "Less ee3).
1. RENT. Lessee shall pay to Lessor, at Lessor's address, a yearly rent for the
premises of $100.00 (the "Rent"). The Rent shall be payable in advance on
the first day of the year throughout the terin of this Lease. The term of the
Lease shall be from May 1, 2014 until crops are removed rlog• to October
31 � 2014 or October 31, 2014.
2. THE PREMISES. In consideration of the Beat and covenants provided for
herein, Lessor agrees to lease to Lessee, and the Lessee hereby agrees to
lease three (3.0) acres of City property as designated in attached Exhibit A.
3. DUTIES
3.1. Lessee shall be responsible for any liability created as a result of
Lessees use of the propeity, including any accidents occurring the
Premises. Lessee shall maintain insurance to cover any and all such liability
listing Lessors an additional insured;
3.2. Lessee shall be allowed to use the premises for farming; however,
Lessee shall only farm crops that are approved by the Lessor. The choice of
crop is subject to the approval of Lessor's representative. Lessee shall
notify the Lessor's representative rior to the planting of crops;
3.3. Lessee shall be responsible fog* repair and replacement of any damage
to the fence being installed for the City public works storage area resulting
from Lessee's activities.
. HOLD HARMLESS AND INDEMNIFY. Lessee shall fully indemnify,
r,
defend, and hold harmless Lessor from any and all claims, lawsuits, and
causes of action of any nature and of any bind related to Lessee's operation
within or use of the Premises,
5. SURRENI ER UPON TERMINATION. Lessee shall, on or before
expiration of the Lease term, surrender the Premises in its present condition
(reasonable wear and tear and damage by elements excepted) free of. any
personal property.
. RIGHT of ENTRY. Lessor and its representatives may enter the
Premises at any reasonable time to inspect the Premises or perform any
work which Lessor elects or is required to undeltal e. Lessor's
representative may enter; the Premises at any time which is necessary t
perform tads related to their contract with Lessor. Lessor; shall undertake
to provide advance notice to Lessee of its entry, when possible. In
Emergency situations, as determined at the sole discretion of the Lessor,
Lessor and its representatives are to be provided full and immediate access
to the Premises, In the event that Lessee defaults on any term or condition
of this Lease, Lessee shall provide immediate Right of Entry to Lessor t
inspect, take control of the Premises, or perform any work necessitated by
the breach of this Lease.
7. SUBLETTING AND ASSIGNMENT. Lessee shall not, without prior
written consent of Lessor;, assign, mortgage o • encumber this Lease, nor
sublet or permit the Premises or any part thereof to be uses by others than
Lessee.
. INSURANCE. Lessee shall have in force and effect at all times relative to
this Lease statutory general liability insurance in an amountacceptable to
Lessor.
. LEASE TERM. The Lease term shall be for a tenancy, commencing on
May 1, 2014 and terminating upon removal of crops prior to October 3 1,
2014 or October 31, 2014. This Lease may be terminated by either part
upon thirty o days written notice.
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IN WITNESS HERE, OF, the Parties have hereunto set their hands the day and
year first written above.
CITY of OSLO
Jessica L. Stockam, Mayor
Tauri Lo f, City Clerk
CHAD MARTINSON
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