HomeMy WebLinkAbout2011-099-11/01/2011-AUTHORIZING AN AGRICULTURAL LEASE ON PRAIRIE RIDGE NATURAL AREA TO HARRY SAUER RESOLUTION 2011-099
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING AN AGRICULTURAL LEASE ON PRAIRIE RIDGE NATURAL AREA
TO HARRY SAUER
WHEREAS, the City of Loveland and the City of Fort Collins are joint owners of the
property known as Prairie Ridge Natural Area, which is described on Exhibit "A", attached and
incorporated herein by reference (the "Property"); and
WHEREAS, Loveland and Fort Collins purchased the Property from Harry Sauer in 2000,
and since that time have been leasing the Property back to Mr. Sauer for wheat farming; and
WHEREAS, Mr. Sauer's most recent lease for the Property expired on July 31, 2011; and
WHEREAS, City staff is recommending that Mr. Sauer be granted an additional one-year
lease for the Property,to expire on July 31, 2012,to allow time for completion of a formal Request
for Proposals for farming services on several properties; and
WHEREAS,the new lease would be on the same terms and conditions as the previous lease
for the Property; and
WHEREAS, the proposed lease agreement is attached hereto as Exhibit `B"; and
WHEREAS, the new lease would generate approximately $2,500 in rent, which would go
to the City of Loveland in exchange for Loveland's work managing the Property; and
WHEREAS, the Loveland City Council approved the proposed lease at its regular meeting
on October 4, 2011; and
WHEREAS, the Land Conservation and Stewardship Board voted unanimously to
recommend approval of the proposed lease at its regular meeting on October 12, 2011; and
WHEREAS, Section 23-114(a) of the City Code authorizes the City Council to lease, for a
definite term of two years or less,any and all interest in real property owned in the name of the City,
provided that the City Council first finds, by resolution, 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. That the lease of the Property pursuant to the terms of this Resolution is in the
best interests of the City.
Section 2. That the Mayor is hereby authorized to execute a joint lease agreement for the
Property in substantially the form as is attached hereto as Exhibit B, together with such additional
terms and conditions or subsequent amendments or corrections as the City Manager,in consultation
with the City Attorney, determines are necessary or appropriate to protect the interests of the City,
including, but not limited to, any necessary changes to the legal description of the leased area, as
long as such changes do not materially increase the size or change the character of the leased area.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1 st
day of November A.D. 2011.
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May
ATTEST: e
City Clerk
EXHIBIT A
Exhibit "A" Legal Description
Legal Description of a parcel of land being portions of Sections 21 and 28. 'Township 6 North,
Range 69 West of the 6"'Principal Meridian, Larimer County.Colorado being more particularly .
described as follows:
Beginning at the Southw-est Corner of said Section 28 and considering the West line of the
Southwest Quarter of said Section 28 as bearing South 00'03'32" West and with all bearings
contained herein relative thereto;thence along the South line of the Southwest Quarter of said
Section 28 North 89'36'54" East.50.00 feet;thence departing said South line North 00'03'32"
East 1013.5.1 feet;thence North 89'50'35" East 2626.58 feet to a point on the North-South
centerline of said Section 28: thence along said North-South centerline North 00'05'42" West
1.1.53.00 feet-, thence departing said North-South centerline North 89'50'35"East 2674.10 feet to
a.point on the East line of the Southeast Quarter of said Section 28; thence along said East line
North 00'14'02" Vest 529.32 feet to the East One Quarter Corner of said Section 28; thence
along the East line of the Northeast Quarter of said Section 28;North 00'14'13" West 2651.15
feet to the Northeast Corner oi'said Section 28; thence along the East line of the Southeast
Quarter of said Section 21 North 00'12'58" West 2626.00 feet to the East One Quarter Corner of
said Section 21. thence along the East-West centerline of said Section 21 South 89'53'47" West
2660.74 feet to the center One Quarter Corner of said Section 21. thence continuing along said
East-West centerline South 89'53'38"West 2708.47 feet to the West One Quarter Corner of said
Section 21; thence along the West line of the Southwest Quarter of said Section 21 South
0P0049" Gast 2636.00 feet to 0ie Southwest Corner of'said Section 21, thence along the West
line of the Northwest Quarter of the Northwest Quarter of said Section 28 South 00`03'02" Rest
1335.90 feet to the Northwest Corner of the Southwest Quarter of.the Northwest Quarter of said
Section 28;thence along the West line of the Southwest Quarter of the Northwest Quarter of said
Section 28 South 00'00'43" West 1335.51 feet to the West One Quarter Corner of said Section
28; thence along the West line of the Southwest Quarter of said Section 28 South 00°03'32"
West 2670.98 feet to the POIN7'Ole BEGINMNG.
The above described tract of land contains 784.751 acres more or less and is subject to the right-
of-way for Larimer County Road No. 19 and all other casements and rights-of-way of record.
EXHIBIT B
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DRYLAND FARM LEASE
THIS LEASE is entered into this eday of 2011, between
City of Loveland, Colorado, the City of Fort Collins, Colorado (collectively referred to herein as
"Owners") and Harry Sauer("Tenant") whose address is 1503 West Shore Drive, Loveland, CO
80538.
WHEREAS, the City of Loveland and the City of Fort Collins ("Owners") own
approximately 785 acres of land between Loveland and Fort Collins known as the Sauer Farm
(the "Property"); and
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WHEREAS, the Owners entered into an Intergovernmental Agreement ("IGA") dated
March 22, 2000, regarding their joint ownership of the Property and related rights and
responsibilities; and —
WHEREAS, the IGA provided that the Owners would use their best efforts to negotiate
a lease with Tenant for farming the Property; and
WHEREAS, the IGA further provided that the City of Loveland (the "Managing Entity")
was responsible for the management of the Property; and
WHEREAS, the Owners have in previous years entered into a Dryland Farm Lease with
Tenant; and
WHEREAS, the City of Loveland desires to enter into a new lease agreement with
Tenant for dryland farming of the Property.
NOW THEREFORE, the parties agree as follows:
1. Agricultural Cron Production. Tenant agrees to use approximately 550 acres of
a dryland farm, located in Sections 21 and 28 of, Township 6 North, Range 69 West, more
particularly described on Exhibit A attached hereto and made a part hereof(the "Property"), for
agricultural crop production only. Tenant agrees to use his best efforts to keep the land in a neat
and clean condition, free of noxious weeds and otherwise in accordance with local dryland crop
production customs, and free of trespassers and uses not allowed hereunder:
2. Rent. On or before December 31, 2011, Tenant shall pay the Managing Entity
rent in the amount of Ten Dollars ($10.00) per acre for the acreage planted into dryland wheat
the previous fall.
3. Term. The Tenn of this Agreement shall be from the date first written above
until July 31, 2012.
4. Income and Expenses. Tenant shall receive 100% of the crop and the Production
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t
Flexibility payments from the Farm Service Agency. Tenant shall be solely responsible for any
and all costs associated with crop production, insect control and perennial weed control.
5. Hunting. The Tenant shall not have the right to hunt, shall not allow others
to hunt and shall not receive income from hunting on said Property.
6. Termination.
a. By Owners. if the notice of tennination is provided to Tenant on or before July
31 of 2012, Tenant will not be entitled to any compensation. However, Tenant
shall be entitled to plant into crop in the fall immediately following termination
that portion of the Property prepared for planting (the "Final Crop') and shall
have the right to harvest the Final Crop prior to July 31" of the following year,
provided that Tenant continues his obligations hereunder until the Final Crop is
harvested. Consistent with the provisions of Paragraph 2 above, Tenant shall pay
cash rent in the amount of Ten Dollars ($10.00) per acre for the acreage planted
for the Final Crop. That portion of the Property not planted for the Final Cop, the
"fallow ground", shall not be prepared for future planting.
b. By Tenant. Tenant shall have the right to cancel this Lease upon giving ninety
(90) days prior written notice to the Managing Entity and, in this event, Tenant
shall pay cash rent in the amount of Ten Dollars ($10.00) per acre for any
growing crop and Tenant's obligations hereunder shall continue and Tenant shall
have the right to harvest that crop until July 3 1" of the following year. Tenant
shall not be entitled to damages or reimbursement of any expenses associated with
the summer fallow ground work. Owners may thereupon find another party to do
summer fallow work.
7. Default. If any party shall willfully at any time fail, neglect, or refuse to carry out
any substantial provision of this Lease, the other parties shall have the benefits of any
proceedings provided by law.
8. Assignment and Subletting. Tenant shall not assign any portion of this Lease
nor sublet any portion of the Property without the prior written approval of the Owners, which
shall not be unreasonably withheld. This Lease shall bind all successors and any permitted
assigns of the parties.
9. Insurance. Owners and Tenant shall each be responsible to maintain and pay for
their oven crop damage (optional) insurance. Tenant shall pay and maintain liability and workers
compensation insurance in accordance with the requirements set forth on the attached Exhibit B.
10. Indemnity. Tenant shall indemnify and hold the Owners harmless from any and
all liability, loss, expense, litigation,judgments, damages, claims and demands of any kind
whatsoever in connection with, arising out of or by any reason of any injury to any person or
persons or to property of any kind whatsoever and to whomever belonging or from any cause or
causes whatsoever arising out of any activity performed by Tenant pursuant to this 2011 Lease or
on the Property.
11. Release. Tcnant hereby releases the Owners from any claim for personal injury
or property damage suffered by Tenant as a result of any activity occurring on the Property
pursuant to this Lease.
12. Notices. Written notices required under this Agreement and all other
correspondence between the parties shall be directed to the following and shall be deemed
received when hand-delivered or three (3) days after being sent by certified mail, return receipt
requested:
If to Owners:
City of Loveland: Natural Areas Manager
City of Loveland
500 G. Third Street
Loveland, Colorado 80537
City of Fort Collins: Natural Areas Program Manager
City of Port Collins
281 N. College
P.O. Box 580
Fort Collins, Colorado 80522
If to Tenant: Harry Sauer
1503 West Shore Drive
Loveland, Colorado 80538
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IN WITNESS WHEREOF, the parties have executed this Dryland Farm Lease as of the
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date first written above.
TENANT
HarrySau
_ SEAL • _
OWNERS:
°'•,,,C; ..................., CITY OF LOVELAND
ATTEST:'''-
City Clerk Cecil A. Gutierrez, Mayor
Approved as to Form:
Assistant City Attorney
CITY OF FORT COLLINS
ATTEST:
City Clerk Karen Weitkunat, Mayor
Approved as to Form:
Assistant City Attorney
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Exhibit "A" Legal Description
Legal Description of a parcel of land being portions of Sections 21 and 28, Township 6 North,
Range 69 West of the 61h Principal Meridian, Larimer County, Colorado being more particularly
described as follows:
Beginning at the Southwest Corner of said Section 28 and considering the West line of the
Southwest Quarter of said Section 28 as bearing South 00°03'32" West and with all bearings
contained herein relative thereto; thence along the South line of the Southwest Quarter of said
Section 28 North 89°36'54" East 50.00 feet; thence departing said South line North 00°03'32"
East 1013.51 feet; thence North 89°50'35" East 2626.58 feet to a point on the North-South
centerline of said Section 28; thence along said North-South centerline North 00°05'42" West
1153.00 feet; thence departing said North-South centerline North 89°50'35" East 2674.10 feet to
a point on the East line of the Southeast Quarter of said Section 28; thence along said East line j
North 00°14'02" West 529.32 feet to the East One Quarter Corner of said Section 28; thence
along the East line of the Northeast Quarter of said Section 28; North 00°14'13" West 2651.15
feet to the Northeast Corner of said Section 28; thence along the East line of the Southeast
Quarter of said Section 21 North 00°12'58" West 2626.00 feet to the East One Quarter Corner of
said Section 21; thence along the East-West centerline of said Section 21 South 89°53'47" West
2660.74 feet to the center One Quarter Corner of said Section 21; thence continuing along said
East-West centerline South 89°53'38" West 2708.47 feet to the West One Quarter Corner of said
Section 21; thence along the West line of the Southwest Quarter of said Section 21 South
01°00'49" East 2636.00 feet to the Southwest Corner of said Section 21; thence along the West
line of the Northwest Quarter of the Northwest Quarter of said Section 28 South 00°03'02" West
1335.90 feet to the Northwest Corner of the Southwest Quarter of the Northwest Quarter of said
Section 28; thence along the West line of the Southwest Quarter of the Northwest Quarter of said
Section 28 South 00°00'43" West 1335.51 feet to the West One Quarter Corner of said Section
28; thence along the West line of the Southwest Quarter of said Section 28 South 00°03'32"
West 2670.98 feet to the POINT OF BEGINNING.
The above described tract of land contains 784.751 acres more or less and is subject to the right-
of-way for Larimer County Road No. 19 and all other easements and rights-of-way of record.
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Exhibit"B" Insurance Requirements
The Lessee, at its sole cost and expense, shall, during the term of this Lease, procure, pay
for, and keep in full force and effect workers compensation insurance for each occurrence, for all
of its employees to be engaged in work on the Leased Premises under this Lease.
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The Lessee, at its sole cost and expense, shall, during the term of this Lease, procure,pay
for, and keep in full force and effect a commercial general liability insurance policy in an amount
not,less than One Million Dollars ($1,000,000)per occurrence with a Two Million Dollar
($2,000,000) aggregate covering the Leased Premises and insuring the Lessee covering bodily
injury, including death to persons, personal injury, and property damage liability arising out of a
single occurrence. Such coverage shall include, without limitation, the insureds' liability for
property damage, bodily injuries, and death of persons in connection with the operation, j
maintenance, or use of the Leased Premises (including acts or omissions of the Lessee or of its
officers, employees, or agents), liability arising out of lawsuits related to employment contracts
of the Lessee, and protection against liability for non-owned and hired automobiles. Such
coverage shall also include comprehensive automobile liability insurance and coverage for such
other risks as shall customarily be required by private institutional mortgage lenders with regard
to property similar in construction, location, and use as the Leased Premises under this Lease
Agreement.
All policies of insurance carried by the Lessee shall name the'Lessee as an insured and
shall name the Lessor as an additional insured on the policy. The policy or policies shall contain
a provision that the policy or policies cannot be canceled or materially altered either by the
insured or the insurance company until fifteen(15)days prior written notice thereof is given to
the Lessor. Upon issuance or renewal of any such insurance policy, the Lessee shall furnish a
certified copy or duplicate original of such policy or renewal thereof with proof of premium
payment to the City. Any such policy shall contain waivers of subrogation and waivers of any
defense based on invalidity arising from any act or omission of any assignees or sub lessees of
the Lessee.
Any insurance policy purchased by the Lessee must be written by an insurance carrier
which has a current rating by Best's Insurance Reports of"A" (Excellent) or better and a
financial rating of"X" or better or such equivalent classification as may hereinafter be required
.customarily for properties similarly situated and it must be approved by the Lessee and the
insurance carrier must be authorized by law to do business in the State of Colorado. The Lessee
shall not obtain any policy which, under the terms of the carrier's charter, by-laws, or policy, loss
payments are contingent upon action by the carrier's board of directors, policy holders, or
members. All insurance policies carried by the Lessee may be reviewed at least annually by the
Lessor to ascertain that the coverage provided by such policy adequately covers those risks
required by this Article VIII to be insured by the Lessee.
In case of the breach of any provision of this Article VIII, the Lessor, at its option, may
take out and maintain, at the expense of the Lessee, such insurance as the Lessor may deem
proper and may bill the costs for such insurance directly to the Lessee. When so billed, the
Lessee shall reimburse the Lessor for the costs of such insurance within thirty (30) days of being
billed.