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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/01/2000 - ITEMS RELATING TO THE LEASE OF THE MCKEE AND LONGV AGENDA ITEM SUMMARY ITEM NUMBER: 14 A-B FORT COLLINS CITY COUNCIL DATE: February 1. 2000 • STAFF: Mark Sears SUBJECT: Items Relating to the Lease of the McKee and Longview Farm Open Space Properties. RECOMMENDATION: Staff recommends adoption of the Resolution and of the Ordinance on First Reading. FINANCIAL IMPACT: The City will not receive any income from these leases. The tenant, Harold Sauer,will receive 100%of the crop income and the Production Flexibility payments from the Farm Service Agency. The City owns and manages the McKee property Open Space,which has not been officially named.The City agrees to pay a one-time expense of approximately$15,000 to spray the McKee property to eradicate existing weeds. Annually the City will then be required to pay approximately $3,500 for one-third of the cost of annual weed control. The City will also be responsible for one-third ofthe cost of pest control if needed,usually not an annual expense.Larimer County and the City jointly own the Longview Farm Open Space which is managed by County. The County will be responsible for all costs associated with weed and pest control on Longview Farm. i EXECUTIVE SUMMARY: A. Resolution 2000-26 Authorizing a Nine-Month Lease of the McKee Property and Longview Farm to Harold Sauer for Dryland Farming and Grazing. s 9 B. First Reading of Ordinance No. 15,2000,Authorizing the City Manager to Enter Into Long- Term Leases of the McKee Property and Longview Farm with Harold Sauer for Dryland s Farming and Grazing. 1 The Natural Resources Department purchased the McKee property in 1997 for open space and the Natural Areas Program is responsible for managing this property. This open space has yet to be officially named. The property is approximately 970 acres,with 840 acres of dryland farm and 130 acres of pasture.The original farm tenant terminated the farming lease about six months ago,stating that it was no longer economical to farm the property. The terms of this lease will hopefully make I it economical for Mr. Sauer to farm and maintain this property. The City will not receive any i revenue from the lease and will help pay for weed and pest control on the dryland farm. The City i agrees to pay approximately$15,000 to eradicate existing weeds and to pay approximately $3,500 annually for one-third of the cost of weed control on the dryland farm. The City will also pay one- third of the cost of pest control needed on the dryland farm, which is not usually needed annually. The tenant shall pay for all costs associated with the 130 acres of pasture land in exchange for the s s DATE: February 1, 2000 2 ; ITEM NUMBER: 14 A-B use of the pasture land to graze cattle. The tenant shall be responsible for all costs including fertilizer, weed control, insect control, and fencing. Together with Latimer County,the City is also proposing a lease of Longview Farm with the same terms as with Mr. Sauer for farming the McKee Farm, except the Longview Farm lease does not include the grazing provisions. The County and the City purchased Longview Farm(approximately 478 acres)in 1997.The County manages this property and will be responsible for all costs associated with weed and pest control on Longview Farm. The Natural Area Program may restore the McKee property to native prairie grasses at some time in the future and then manage it as a natural area. Until then this farming lease is a very economical means of maintaining this open space property. Upon approval of the Resolution, the initial term of the leases will extend until October 15, 2000. Upon final adoption of the Ordinance,the leases will be automatically renewed annually on October 16th of each year. The conditions of the leases allow any party to terminate with 90 days notice. RESOLUTION 2000-26 • OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING A NINE-MONTH LEASE OF MCKEE PROPERTY TO HAROLD SAUER FOR DRYLAND FARMING AND GRAZING WHEREAS,the City of Fort Collins is the owner of that certain property located between County Road 17 and 19 and south of County Road 32 (extended), generally known as the McKee property, and more particularly described on Exhibit"A", attached hereto and incorporated herein by this reference (the "McKee Property"); and WHEREAS, the City of Fort Collins, together with Larimer County, is the owner of that certain property located between County Road 17 and State Highway 287 and south of County Road 32(extended),generally known as Longview Farm,and more particularly described on Exhibit"B", attached hereto and incorporated herein by this reference (the "Longview Farm"); and WHEREAS,the City acquired the McKee Property and the Longview Farm for open space and general natural areas purposes,which purposes will be advanced by the continuation of dryland farming on those properties, and grazing on the McKee Property; and WHEREAS,Harold Sauer, a local dryland farmer, has agreed to lease the McKee Property and the Longview Farm. and to cultivate wheat and other crops on those properties, graze cattle on • a portion of the McKee Property, and maintain the properties in a neat and clean condition free of noxious weeds and otherwise in accordance with local farming customs; and WHEREAS,the City has negotiated with Harold Sauer a dryland farm lease setting out their respective rights and responsibilities regarding the McKee Property, which is attached hereto as Exhibit"C"and incorporated herein by this reference(the"McKee Lease"); and WHEREAS,the County and the City have also negotiated with Harold Sauer a dryland farm lease setting out their respective rights and responsibilities regarding the Longview Farm,which is substantially the same as the McKee Lease,excluding the grazing provisions therein(the"Longview Lease"); and WHEREAS,although the McKee Lease and the Longview Lease each terminate on October 15,2000,they provide for automatic renewals in future years absent notice of termination by either party, and staff is presenting to the Council for adoption on first reading Ordinance No. 15, 2000, authorizing the extension of the Leases for future years; and WHEREAS, under Section 23-114 of the Code of the City of Fort Collins, the Council is authorized to lease any and all interests in real property owned in the name of the City,by resolution for a period of up to two years,and by ordinance for a longer period,provided that Council first finds that the lease is in the best interests of the City. • NOW, THEREFORE,BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. Leasing the McKee Property and the Longview Farm to Harold Sauer for dryland farming and grazing is in the best interests of the City of Fort Collins. Section 2. That the City Manager is hereby authorized to enter into the McKee Lease and the Longview Lease, subject to such modifications in form or substance as the City Manager, in consultation with the City Attorney,may deem necessary to effectuate the purposes of said leases, as set forth herein. Passed and adopted at a regular meeting of the City Council held this 1 st day of February, A.D. 2000. Mayor ATTEST: City Clerk EXHIBIT"A" • LEGAL DESCRIPTION OF MCKEE PROPERTY PARCELI: Section 22,Township 6 North,Range 69 West of the 6`h P.M., Larimer County, Colorado, except portion conveyed by Warranty Deed recorded February 25, 1971, in Book 1493 at Page 667; and further except that portion conveyed in Quit Claim Deed recorded March 8, 1962, in Book 1166 at Page 356, and Deed of Dedication for public highway recorded August 22, 1990, under Reception Number 90037644. PARCEL II: The North half(N1/2) of Section 27,Township 6 North, Range 69 West of the 6's P.M., County of Larimer, State of Colorado;EXCEPT those portions contained in Deeds recorded as Reception No. 90031185 and in Book 1493 at Page 667. • EXHIBIT`B" LEGAL DESCRIPTION OF LONGVIEW FARM A tract of land located in Section 23,Township 6 North, Range 69 West of the 6" P.M., Larimer County, Colorado being more particularly described as follows: Considering the East line of the Southeast quarter of said Section 23 as bearing South 00016'24" West from a 3"brass cap at the East Quarter comer of said Section 23 to a 3"brass cap at the Southeast comer of said Section 23 and with all bearings contained herein relative thereto: COMMENCING at the Southeast comer of said Section 23; thence along the South line of said Southeast quarter, South 89018109" West 50.01 feet to the West right-of-way line of U.S. Highway 287; thence along said West right-of-way line,North 00016124" East,30.00 feet to the Northerly right-of-way line of 69`h Street, said point being the POINT OF BEGINNING; thence along said Northerly right-of-way line, South 89°18'09" West, 100.50 feet to a curve concave to the South having a central angle of 25037'34", a radius of 305.00 feet and the chord of which bears South 76°29'23" West, 135.29 feet; thence continuing along said Northerly right-of-way line and the arc of said curve 136.41 feet to a point on the South line of said Southeast Quarter of Section 23; thence along the South line, South 89°18'09" West,2362.39 feet to the South Quarter comer of said Section 23; thence along the South line of the Southwest Quarter of Section 23,North 89°19'35'; West, 1306.95 feet to the West 1/16 comer between Section 23 and Section 26; thence,North 00'11'51"East, 2650.27 feet to the Center West 1/16 corner of Section 23; thence,North 00011'54" east, 2636.51 feet to the West 1/16 comer between said Section 23 and Section 14; thence along the North line of the Northwest Quarter of said Section 23. North 89°21'56" east, 1319.70 feet to the North Quarter comer of said Section 23; thence along the North line of the Northeast Quarter of said Section 23,North 89°29'53" East,2588.28 feet to a point on the West right-of-way line of said U.S. Highway 287; thence along said West line, South 00°16'06" West, 2654.25 feet; thence continuing along said West line, South 00°16'24" West 2623.63 feet to the Point of Beginning. EXCEPT: A tract of land located in the Northeast Quarter of Section 23, Township 6 North, Range 69 West of the 66'Principal meridian, County of Larimer, State of Colorado,being more particularly described as follows: Considering the East line of the Northeast Quarter of said Section 23 as bearing South 00'16'06" West from a 3"brass cap at the Northeast comer of said Section 23 to a 3"brass cap at the East Quarter comer of said Section 23 and with all bearings contained herein relative thereto: Commencing at the East Quarter comer of said Section 23; thence, South 89'42'32" West, 50.00 feet to the West right-of-way line of U.S. Highway 287,said point being the POINT OF BEGINNING; thence along said West right-of-way line south 00°16'24" West, 25.25 feet;thence, South 89042132" West, 41.82 feet to a point on a curve concave to the Southeast having a central angle of 54°45'22", a radius of 610.00 feet and the chord of which bears South 62°19'50" West 561.03 feet; thence along the are of said curve 582.96 feet; thence along a non-tangent line,North 55002'52" West 279.71 feet; thence,North 27°44'06",West 137.30 feet;thence South 89'42'32" West, 812.49 feet; thence,North 00117'28",West 1006.92 feet; thence,North 62019'19" East, 680.61 feet; thence,North 89°42'32"East, 1053.02 feet to a point on the West right-of-way line of U.S. Highway 287;thence along said West right-of-way line. South 00°16'06" West, 1320.07 feet to the Point of Beginning Count of Latimer, State of Colorado,AND A tract of land located in the East Half of Section 23,Township 6 North, Range 69 West of the 6a' Principal Meridian, County of Latimer, State of Colorado, being more particularly described as . follows: Considering the East line of the Northeast quarter of said Section 23 as bearing North 00°16'06" East from a 3"brass cap at the East quarter corner of said Section 23 to a 3" brass cap at the Northeast comer of said Section 23 and with all bearings contained herein relative thereto: Commencing at the East Quarter comer of said Section 23; thence, South 89°42'32" West, 50.00 feet to the West right-of-way line of U.S. Highway 287, said point being the POINT OF BEGINNING; thence along said West right-of-way line South 00'16'24"West, 25.25 feet; thence, South 89°42'32" West, 41.92 feet to a point on a curve concave to the Southeast having a central angle of 54°45'22", a radius of 610.00 feet and the chord of which bears South 62°19'50" West, 561.03 feet;thence along the arc of said curve 582.96 feet; thence along a non-tangent line,North 55°02'52" West 279.71 feet; thence,North 27044'06" West 137.30 feet;thence South 89042'32" West, 812.49 feet; thence,North 00017128" West 1006.92 feet;thence,North 62019119" East, 680.61 feet; thence,North 89042132"East, 1053.02 feet to a point on the West right-of-way line of U.S. Highway 287; thence along said West right-of-way line, South 00°16'06" West, 1320.07 feet to the Point of Beginning. County of Latimer, State of Colorado • EXHIBIT DRYLAND FARM LEASE THIS LEASE is entered into this day of , 2000, between the City of Fort Collins, Colorado ("Owner"), and Harold Sauer("Tenant"). The parties agree as follows: 1. Description of Term. Tenant agrees to farm and cultivate approximately 840 acres of a dryland farm and graze cattle on approximately 130 acres of dryland pasture located in Section 22,Township 6 North,Range 69 West,more particularly described on Exhibit"A"attached hereto and made a part hereof, for a term commencing this date and terminating as hereinafter provided. Tenant agrees to use his best efforts to keep the land in a neat and clean condition, free of noxious weeds, and not to over graze the pasture land and otherwise in accordance with local farming customs. Tenant agrees to provide and maintain fencing required for grazing cattle in a manner consistent with Latimer County Fencing Regulations 2. Income and Expenses. Tenant is to receive 100% of the crop and the Production Flexibility payments from the Farm Service Agency. Tenant shall pay for the following: fertilizer, harvesting,and seed. Tenant shall pay 67%of the annual expense for wheat spraying for weeds and any needed insect control. For control of perennial weeds such as bindweed, Canadian thistle of musk thistle, Owner shall pay for the cost of the chemical and Tenant shall pay for the cost of the application. Owner shall pay for the cost of spraying summer fallow and stubble in the year 2000. . Owner shall pay 33% of the annual expense for wheat spraying for weeds and any needed insect control. Tenant shall plant a suitable crop on the portion of the land which is not in summer fallow. The selection of seed and variety shall be at the discretion of the Tenant. Upon termination of the Production Flexibility Payments,Owner and Tenant shall reach agreement upon distribution of costs and revenue. The Tenant shall pay for all costs associated with the pasture land,including without limitation fertilizer,weed control,insect control,and fencing,in exchange for the use of the pasture land to graze cattle. The Tenant shall not have the right to hunt, allow others to hunt or receive income from hunting on said property. 3. Cancellation and Possession. Owner shall have the right at any time, upon giving Tenant ninety(90)days prior notice,to terminate all or any portion of this Lease,and to thus obtain possession of all or any portion of the premises,by making a reasonable and equitable payment to the Tenant based upon the following: a. If notice of termination is given to Tenant before January 1 of any year,then Tenant shall be paid for all summer fallow to be taken from Tenant at the rate of $10.00 per acre per operation that the Tenant has performed on the summer fallow since last harvest;and the crop for the land,the summer fallow payment plus the cost s of the seed and $10.00 per acre for the planting and $10.00 per acre for other operations plus the cost herein provided for chemicals. b. If notice is given after January 1,then payment for the summer fallow shall be the same as above and payment for the growing crop shall, at Tenant's option, either be based upon the amount specified in Paragraph 3a above, or based upon Tenant's share of the prospective crop based upon the average county yield for the crop being grown,or the yield on the surrounding property at the going market price at the time of harvest. Tenant shall have the right to cancel the Lease upon giving ninety (90) days prior written notice to Owner and,in this event,Tenant shall have the right to harvest any growing crop, but will not be entitled to damages or expenses for the summer fallow. Owner may thereupon find another party to do summer fallow work. 4. Lease Renewability. This Lease shall extend until October 15, 2000. The Lease may be extended at any time prior to that termination date by written notice from the Owner of such intent to extend,and shall be automatically renewed annually on October 16 of each year thereafter, unless either parry provides written notice of intent to terminate no less than ninety (90) days prior to any upcoming automatic renewal date. Termination at any time other than the end of lease period shall be in accordance with Paragraph 3 above and subject to the requirements set forth therein. 5. Default. If either parry shall willfully at any time fail,neglect,or refuse to carry out any substantial provision of this Lease,the other party shall have the benefits of any proceedings provided by law. 6. Assignment and Subletting. Tenant shall not assign any portion of this Lease nor sublet any portion of the premises without the prior written approval of the Owner which shall not be unreasonably withheld. This Lease shall bind any successor in interest of Owner or transferee of the property. 7. Insurance. Tenant agrees to pay and maintain liability and workers compensation insurance in accordance with Exhibit`B". 8. Indemnity. Tenant shall indemnify and hold harmless the Owner for any claim, including a reasonable expense for attorneys fees, arising out of Tenant's activities on the subject property pursuant to this Lease. 9. Personal Iniurv/Pronerty Damage. Tenant hereby releases Owner from any claim for personal injury or property damage suffered by Tenant from any activity pursuant to this Lease. 10. Financial Obligation. All financial obligation of the Owner under this Lease are contingent upon funds being budgeted and appropriated therefor. . 11. Notices. All notices under this Lease shall be in writing and sent by registered mail or certified mail, postage prepaid, as follows: To Tenant: To City: The City of Fort Collins c/o Mark Sears,Natural Areas Program Manager P.O. Box 580 Fort Collins, CO 80522 With a Copy to: The City of Fort Collins c/o Ron Mills, Right of Way Agent P.O. Box 580 Fort Collins, CO 80522 Either party may change the address for notice to such party by giving notice as provided above. Notice shall be considered received on the delivery or attempted delivery date as indicated on the return receipt. • Approved and executed this day of TENANT OWNER: By: By: Harold Sauer John F. Fischbach, City Manager ATTEST: City Clerk APPROVED AS TO FORM: Assistant City Attorney • s Exhibit B INSURANCE REQUIREMENTS DRYLAND FARM LEASE Prior to commencement of any work, tenant shall forward Certificates of Insurance to City of Fort Collins Risk Management, P.O. Box 580,Fort Collins, Colorado 80522. The insurance required shall be procured and maintained for the duration of the Contract and shall be written for not less than the amounts,or greater if required by law. 1. Workers' Compensation a) State of Colorado: Statutory b) Applicable Federal: Statutory c) Employer's Liability: $100,000 Each Accident $500,000 Disease-Policy Limit $100,000 Disease-Each Employee 2. Farm Liability on an Occurrence Form,with a combined single limit of$1.000,000 per occurrence/$1,000,000 Aggregate. Tenant agrees that such insurance is primary. • 3. All Insurance policies (except Workers Compensation and Professional Liability) shall include City of Fort Collins and its elected officials and employees as additional insureds as their interests may appear. 4. The City reserves the right to reject any insurer it deems not financially acceptable. Property and Liability Insurance Companies shall be licensed to do business in Colorado and shall have an AM Best rating of not less thean B+ and/or VII. 5. Certificates of insurance on all policies shall give the City written notice of not less than thirty (30) days prior to cancellation or change in coverage. ANY DEVIATIONS FROM THE STANDARDS GIVEN ABOVE MUST BE APPROVED BY THE CITY OF FORT COLLINS RISK MANAGEMENT DEPARTMENT. • ORDINANCE NO. 15, 2000 • OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LONG-TERM LEASE OF THE MCKEE PROPERTY AND LONGVIEW FARM TO HAROLD SAUER FOR DRYLAND FARMING AND GRAZING WHEREAS, the City of Fort Collins is the owner of that certain property located between County Road 17 and 19 and south of County Road 32 (extended), generally known as the McKee property, and more particularly described on Exhibit "A", attached hereto and incorporated herein by this reference (the "McKee Property"); and WHEREAS, the City of Fort Collins, together with Larimer County, is the owner of that certain property located between County Road 17 and State Highway 287 and south of County Road 32(extended),generally known as Longview Farm,and more particularly described on Exhibit"B", attached hereto and incorporated herein by this reference (the "Longview Farm"); and WHEREAS,the City acquired the McKee Property and the Longview Farm for open space and general natural areas purposes,which purposes will be advanced by the continuation of dryland farming on those properties, and grazing on the McKee Property; and WHEREAS,Harold Sauer, a local dryland farmer,has agreed to lease the McKee Property • and the Longview Farm, and to cultivate wheat and other crops on those properties,graze cattle on a portion of the McKee Property, and maintain the properties in a neat and clean condition free of noxious weeds and otherwise in accordance with local farming customs; and WHEREAS,the City has negotiated with Harold Sauer a dryland farm lease setting out their respective rights and responsibilities regarding the McKee Property, which is attached hereto as Exhibit "C" and incorporated herein by this reference (the"McKee Lease"); and WHEREAS,the County and the City have also negotiated with Harold Sauer a dryland farm lease setting out their respective rights and responsibilities regarding the Longview Farm,which is substantially the same as the McKee Lease,excluding the grazing provisions therein(the"Longview Lease"); and WHEREAS,the McKee Lease and the Longview Lease each terminate on October 15,2000, but provide for automatic renewals in future years absent notice of termination by either party; and WHEREAS,accordingly,although the Council has adopted Resolution 2000-26,authorizing the initial term of the Leases, this Ordinance will authorize the continued renewal of the Leases beyond the initial nine-month term; and • WHEREAS, under Section 23-114 of the Code of the City of Fort Collins, the Council is authorized to lease any and all interests in real property owned in the name of the City,by resolution, fora period of up to two years,and by ordinance for a longer period,provided that Council first finds that the lease is in the best interests of the City. NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That leasing the McKee ftperty and the Longview Farm to Harold Sauer for dryland farming and grazing on a long-term basis beyond the initial nine-month term of the leases is in the best interests of the City of Fort Collins. Section 2. That the City Manager is hereby authorized to extend the McKee Lease and the Longview Lease indefinitely beyond the initial nine-month term, with automatic extensions and termination by any party with ninety(90)days notice,and subject to such modifications in form or substance as the City Manager, in consultation with the City Attorney, may deem necessary to effectuate the purposes of said leases, as set forth herein. Introduced, considered favorably on first reading, and ordered published this 1 st day of February,A.D. 2000,and to be presented for final passage on the 15th day of February, A.D.2000. Mayor ATTEST: City Clerk Passed and adopted on final reading this 15th day of February, A.D. 2000. Mayor ATTEST: City Clerk EXHIBIT"A" . LEGAL DESCRIPTION OF MCKEE PROPERTY PARCEL I: Section 22, Township 6 North,Range 69 West of the 61 P.M., Larimer County, Colorado, except portion conveyed by Warranty Deed recorded February 25, 1971, in Book 1493 at Page 667; and further except that portion conveyed in Quit Claim Deed recorded March 8, 1962,in Book 1166 at Page 356,and Deed of Dedication for public highway recorded August 22, 1990, under Reception Number 90037644. , PARCEL 11: The North half(NI/2) of Section 27, Township 6 North,Range 69 West of the 6d P.M., County of Larimer, State of Colorado; EXCEPT those portions contained in Deeds recorded as Reception No. 90031185 and in Book 1493 at Page 667. EXHIBIT`B" LEGAL DESCRIPTION OF LONGVIEW FARM A tract of land located in Section 23, Township 6 North, Range 69 West of the 6b P.M., Larimer County, Colorado being more particularly described as follows: Considering the East line of the Southeast quarter of said Section 23 as bearing South 00°16'24" West from a 3"brass cap at the East Quarter comer of said Section 23 to a 3"brass cap at the Southeast comer of said Section 23 and with all bearings contained herein relative thereto: COMMENCING at the Southeast comer of said Section 23; thence along the South line of said Southeast quarter, South 89018109" West 50.01 feet to the West right-of-way line of U.S. Highway 287; thence along said West right-of-way line,North 00016124" East,30.00 feet to the Northerly right-of-way line of 69'h Street, said point being the POINT OF BEGINNING; thence along said Northerly right-of-way line, South 89°18'09" West, 100.50 feet to a curve concave to the South having a central angle of 25°37'34", a radius of 305.00 feet and the chord of which bears South 76°29'23"West, 135.28 feet; thence continuing along said Northerly right-of-way line and the arc of said curve 136.41 feet to a point on the South line of said Southeast Quarter of Section 23; thence along the South line, South 89°18'09" West, 2362.39 feet to the South Quarter comer of said Section 23; thence along the South line of the Southwest Quarter of Section 23,North 89°19'35"; West, 1306.95 feet to the West 1/16 comer between Section 23 and Section 26; thence,North 00011151" East, 2650.27 feet to the Center West 1/16 comer of Section 23; thence,North 00°11'S4"east, 2636.51 feet to the West 1/16 comer between said Section 23 and Section 14; thence along the North line of the Northwest Quarter of said Section 23.North 89°21'56" east, 1319.70 feet to the North Quarter comer of said Section 23; thence along the North line of the Northeast Quarter of said Section 23,North 89°29'53" East,2598.28 feet to a point on the West Tight-of-way line of said U.S. Highway 287; thence along said West line, South 00°16'06" West, 2654.25 feet; thence continuing along said West line, South 00016'24" West 2623.63 feet to the Point of Beginning. EXCEPT: A tract of land located in the Northeast Quarter of Section 23,Township 6 North, Range 69 West of the 6tb Principal meridian, County of Larimer, State of Colorado,being more particularly described as follows: Considering the East line of the Northeast Quarter of said Section 23 as bearing South 00°16'06" West from a 3"brass cap at the Northeast comer of said Section 23 to a 3"brass cap at the East Quarter comer of said Section 23 and with all bearings contained herein relative thereto: Commencing at the East Quarter comer of said Section 23; thence, South 89142'32" West, 50.00 feet to the West right-of-way line of U.S. Highway 287, said point being the POINT OF BEGINNING, thence along said West right-of-way line south 00°16'24" West, 25.25 feet; thence, South 89°42'32" West, 41.82 feet to a point on a curve concave to the Southeast having a central angle of 54°45'22", a radius of 610.00 feet and the chord of which bears South 62'19'50" West 561.03 feet; thence along the arc of said curve 582.96 feet; thence along a non-tangent line,North 55°02'52"West 279.71 feet; thence,North 27044106", West 137.30 feet; thence South 89°42'32" West, 812.49 feet; thence,North 00°17'28",West 1006.92 feet; thence,North 62019'19" East, 680.61 feet; thence,North 89°42'32" East, 1053.02 feet to a point on the West right-of-way line of U.S. Highway 287; thence along said West right-of-way line. South 00°16'06"West, 1320.07 feet to the Point of Beginning Count of Larimer, State of Colorado,AND A tract of land located in the East Half of Section 23, Township 6 North, Range 69 West of the 6t° Principal Meridian, County of Larimer, State of Colorado,being more particularly described as follows: Considering the East line of the Northeast quarter of said Section 23 as bearing North 00016'06" East from a 3"brass cap at the East quarter corner of said Section 23 to a 3"brass cap at the Northeast comer of said Section 23 and with all bearings contained herein relative thereto: Commencing at the East Quarter comer of said Section 23; thence, South 89°42'32"West, 50.00 feet to the West right-of-way line of U.S. Highway 287, said point being the POINT OF BEGINNING; thence along said West right-of-way line South 00°16'24"West, 25.25 feet; thence, South 89°42'32" West, 41.82 feet to a point on a curve concave to the Southeast having a central angle of 54°45'22", a radius of 610.00 feet and the chord of which bears South 62'19'50" West, 561.03 feet;thence along the arc of said curve 582.96 feet; thence along a non-tangent line,North 55002'52" West 279.71 feet; thence,North 27°44'06" West 137.30 feet; thence South 89°42'32" West, 812.49 feet; thence,North 00°17'28" West 1006.92 feet; thence,North 62°19'19" East, 680.61 feet;thence,North 89142'32"East, 1053.02 feet to a point on the West right-of-way line of U.S. Highway 287; thence along said West right-of-way line, South 00°16'06" West, 1320.07 feet to the Point of Beginning. County of Larimer, State of Colorado • 1 EXHIBIT "C" DRYLAND FARM LEASE THIS LEASE is entered into this day of ,2000, between the City of Fort Collins,Colorado ("Owner"), and Harold Sauer("Tenant"). The parties agree as follows: 1. Description of Term. Tenant agrees to farm and cultivate approximately 840 acres of a dryland farm and graze cattle on approximately 130 acres of dryland pasture located in Section 22,Township 6 North,Range 69 West,more particularly described on Exhibit"A"attached hereto and made a part hereof, for a term commencing this date and terminating as hereinafter provided. Tenant agrees to use his best efforts to keep the land in a neat and clean condition,free of noxious weeds, and not to over graze the pasture land and otherwise in accordance with local farming customs. Tenant agrees to provide and maintain fencing required for grazing cattle in a manner consistent with Larimer County Fencing Regulations 2. Income and Expenses. Tenant is to receive 100% of the crop and the Production Flexibility payments from the Farm Service Agency. Tenant shall pay for the following: fertilizer, harvesting,and seed. Tenant shall pay 67%of the annual expense for wheat spraying for weeds and any needed insect control. For control of perennial weeds such as bindweed, Canadian thistle of musk thistle, Owner shall pay for the cost of the chemical and Tenant shall pay for the cost of the application. Owner shall pay for the cost of spraying summer fallow and stubble in the year 2000. . Owner shall pay 33% of the annual expense for wheat spraying for weeds and any needed insect control. Tenant shall plant a suitable crop on the portion of the land which is not in summer fallow. The selection of seed and variety shall be at the discretion of the Tenant. Upon termination of the Production Flexibility Payments,Owner and Tenant shall reach agreement upon distribution of costs and revenue. The Tenant shall pay for all costs associated with the pasture land,including without limitation fertilizer,weed control,insect control,and fencing,in exchange for the use of the pasture land to graze cattle. The Tenant shall not have the right to hunt, allow others to hunt or receive income from hunting on said property. 3. Cancellation and Possession. Owner shall have the right at any time, upon giving Tenant ninety(90)days prior notice,to terminate all or any portion of this Lease,and to thus obtain possession of all or any portion of the premises,by making a reasonable and equitable payment to the Tenant based upon the following: a. If notice of termination is given to Tenant before January 1 of any year,then Tenant shall be paid for all summer fallow to be taken from Tenant at the rate of $10.00 per acre per operation that the Tenant has performed on the summer fallow since last harvest;and the crop for the land,the summer fallow payment plus the cost of the seed and $10.00 per acre for the planting and $10.00 per acre for other operations plus the cost herein provided for chemicals. b. If notice is given after January 1, then payment for the summer fallow shall be the same as above and payment for the growing crop shall, at Tenant's option, either be based upon the amount specified in Paragraph.3a above, or based upon Tenant's share of the prospective crop based upon the average county yield for the crop being grown,or the yield on the surrounding property at the going market price at the time of harvest. Tenant shall have the right to cancel the Lease upon giving ninety (90) days prior written notice to Owner and,in this event,Tenant shall have the right to harvest any growing crop, but will not be entitled to damages or expenses for the summer fallow. Owner may thereupon find another party to do summer fallow work. 4. Lease Renewability. This Lease shall extend until October 15, 2000. The Lease may be extended at any time prior to that termination date by written notice from the Owner of such intent to extend,and shall be automatically renewed annually on October 16 of each year thereafter, unless either party provides written notice of intent to terminate no less than ninety (90) days prior to any upcoming automatic renewal date. Termination at any time other than the end of lease period shall be in accordance with Paragraph 3 above and subject to the requirements set forth therein. 5. Default. If either party shall willfully at any time fail,neglect,or refuse to carry out any substantial provision of this Lease,the other parry shall have the benefits of any proceedings provided by law. 6. Assignment and Subletting. Tenant shall not assign any portion of this Lease nor sublet any portion of the premises without the prior written approval of the Owner which shall not be unreasonably withheld. This Lease shall bind any successor in interest of Owner or transferee of the property. 7. Insurance. Tenant agrees to pay and maintain liability and workers compensation insurance in accordance with Exhibit`B". 8. Indemnity. Tenant shall indemnify and hold harmless the Owner for any claim, including a reasonable expense for attorneys fees, arising out of Tenant's activities on the subject property pursuant to this Lease. 9. Personal Iniury/Property Damage. Tenant hereby releases Owner from any claim for personal injury or property damage suffered by Tenant from any activity pursuant to this Lease. 10. Financial Oblieation. All financial obligation of the Owner under this Lease are contingent upon funds being budgeted and appropriated therefor. • 11. Notices. All notices under this Lease shall be in writing and sent by registered mail or certified mail, postage prepaid, as follows: To Tenant: To City: The City of Fort Collins c/o Mark Sears,Natural Areas Program Manager P.O. Box 580 Fort Collins, CO 80522 With a Copy to: The City of Fort Collins c/o Ron Mills, Right of Way Agent P.O. Box 580 Fort Collins, CO 80522 Either party may change the address for notice to such parry by giving notice as provided above. Notice shall be considered received on the delivery or attempted delivery date as indicated on the return receipt. • Approved and executed this day of TENANT OWNER: By: By: Harold Sauer John F. Fischbach, City Manager ATTEST: City Clerk APPROVED AS TO FORM: Assistant City Attorney • Exhibit B INSURANCE REQUIREMENTS DRYLAND FARM LEASE Prior to commencement of any work, tenant shall forward Certificates of Insurance to City of Fort Collins Risk Management, P.O. Box 580, Fort Collins, Colorado 80522. The insurance required shall be procured and maintained for the duration of the Contract and shall be written for not less than the amounts, or greater if required by law. 1. Workers' Compensation a) State of Colorado: Statutory b) Applicable Federal: Statutory c) Employer's Liability: $100.000 Each Accident $500,000 Disease-Policy Limit $100.000 Disease-Each Employee 2. Farm Liability on an Occurrence Form, with a combined single limit of$1,000,000 per occurrence/$1,000,000 Aggregate. Tenant agrees that such insurance is primary. • 3. All Insurance policies (except Workers Compensation and Professional Liability) shall include City of Fort Collins and its elected officials and employees as additional insureds as their interests may appear. 4. The City reserves the right to reject any insurer it deems not financially acceptable. Property and Liability Insurance Companies shall be licensed to do business in Colorado and shall have an AM Best rating of not less thean B+and/or VII. 5. Certificates of insurance on all policies shall give the City written notice of not less than thirty (30) days prior to cancellation or change in coverage. ANY DEVIATIONS FROM THE STANDARDS GIVEN ABOVE MUST BE APPROVED BY THE CITY OF FORT COLLINS RISK MANAGEMENT DEPARTMENT. J DOUGLAS RD. COUNTY RD_ 54 IrI J �OUNTY RD. 54G� `� 1 COUNTY RD. 52 Ew - WILL^X LN. COUNTY RD. 50 - ('= Z I 'a7 J i 1 I VINE DR. LAPORTE AVE. t _,MU BERRY ST ,J� I p r+' HIGHWAY 1! 1 i�•.�. ELIZABETH ST. \ PROSPECT RDI DRAKE RD. i j-J �♦4 R _ R T i HORSETOOTH RD. �i \ HARMONY RD. HARMONY RD. h i 4 S m J V COUNTY RD. 34 TRILBY RD. J ...a�— COUNTY RD CO 32 D. — OUNTY RD. 3 FORT COL INS U AN GROWTH AREA MASTER STREET PLAN u9nm ..w alma•Icm ADOPTED BY CITY ® weule_.A�.tt,�.®t l mn♦�L.:ovy I..Xv — —eR—.r m+e`ae—u s — COUNCIL PARCH IZ, 19 83 APPROVED REVISIONS: SE 1982 Kjw XULY 189 DECEYBER 1992 art ums