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HomeMy WebLinkAboutAgricultural Lease with Dayhuff at the Water Treatment Plant Co.+�' Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Debra Arkell, Director of Public Service Chris Kukulski, City Manager SUBJECT: Agricultural Lease with Steven Dayhuff at the Water Treatment Plant MEETING DATE: July 21, 2008 BACKGROUND: Steven Dayhuff has leased 18 acres on Leverich Road in the Mystic Heights Subdivision since 1995. The City has renewed his lease every three years since 1995 and his lease is up for renewal next month for a period of three years. His rental rate is $400 per year. Mr. Dayhuff has faithfully paid his rent each year. He uses the property for haying and for livestock and he controls noxious weeds on the property. A copy of the lease is attached. RECOMMENDATION: Authorize the City Manager to renew the Steven Dayhuff lease for a term of three years beginning August 19, 2008. FISCAL EFFECTS: His payment of$400 is deposited into the Water Treatment Plant fund. Weed control done by Mr. Dayhuff benefits the City by saving money and staff time to perform weed control on this acreage. ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, Debra H. Arkell, Director of Public Service Chris A. Kukulski, City Manager Report compiled on_July 10_2008 AGRICULTURAL LEASE THIS AGREEMENT, made and entered into this_August_day of_19 2008, by and between the City of Bozeman, a municipal corporation located at 411 East Main Street, Bozeman, Montana 59715, hereinafter referred to as LESSOR, and Steven G. Dayhuff of 6981 Bristol Lane, Bozeman, Montana, hereinafter referred to as LESSEE. WITNESSETH: 1. Premises Leased: For and in consideration of the rents to be paid and the covenants to be performed by Lessee as hereinafter set forth, Lessor does hereby demise, lease and let unto Lessee those certain lots, pieces or parcels ofreal property situated, lying and being in the County of Gallatin, State of Montana, and more particularly described as follows: The South Half of the Southeast Quarter of the Southeast Quarter (S1/2SE1/4SE1/4) of Section 1, Township 3 South, Range 5 East, M.P.M., containing approximately 18.5791 acres,more or less, according to a plat and survey thereof entitled Mountain Shadows Estates Masterplan, a Subdivision in Gallatin County, Montana, filed in the office of the County Clerk and Recorder of Gallatin County, Montana, on the 6th day of October, 1970. 2. Term: To have and to hold said premises according to the provisions hereof for a period of three (3) years from and after the date first above written, and unless terminated upon notice in writing given by either party to the other not less than sixty(60) days prior to the end of the initial term or any annual extension thereof, unless sooner terminated as herein provided. 3. Consideration: Lessee shall pay to the Lessor, as rental for the demised premises, the sum of$400 per year. This payment shall be made to Lessor annually on or before the first day of July and shall be paid to Lessor at its principal offices in Bozeman, Montana. 4. Repairs and Improvements: Lessee agrees to protect all improvements upon said premises and to keep the same in as good condition and state of repair as the same shall be at the time this Lease is executed, reasonable wear, tear, and damage by the elements excepted. Any new improvements made during the term of this Lease shall remain on the land as property of the Lessor unless otherwise excepted by the terms of this Lease. The parties further agree that as of the date of this Lease Agreement, the fences which surround the leased premises may need repair and/or replacement during the term of this Lease. In this connection, and provided that it is mutually agreed upon by the parties in writing, such repair and/or replacement shall be accomplished during the term of this Lease. Lessor shall bear the cost of the materials necessary to effect this repair/replacement and Lessee shall provide the labor. 5. Use of Premises: Lessee agrees to utilize said premises in a good farmer-like manner and according to the ordinary methods of husbandry employed in the area and to commit no waste upon the property. Lessee agrees that he will not use, or permit to be used, any part of said premises for any other purpose than normal farming or grazing purposes without the prior written consent of the Lessor. Lessee further agrees to comply with all State of County laws and regulations regarding the control of noxious weeds. 6. No Assignment or Sublease: Lessee agrees that he will not assign this Lease nor will he sublet the premises, or any part thereof, without the prior written consent of the Lessor. 7. Surrender of Premises to Lessor: Lessees further agrees that at the termination of this Lease, whether by expiration of its term, by default, or as otherwise provided herein, he will immediately surrender possession of said premises to Lessor with the improvements thereon in as good condition and repair as the same now are, reasonable wear, tear and damage from the elements alone excepted. 8. Lessor's Right to Terminate: Lessor hereby reserves, and Lessee grants to Lessor, the right to terminate this Lease at any time upon sixty(60) days written notice; provided, however, that if the Lessee has seeded and fertilized the premises and said sixty(60) days run prior to grain harvest or first cutting, this Lease shall be extended until the harvest or first cutting has been completed. 9. Notice to Lessee: Notice many be given by Lessor to Lessee by mailing the same to Lessee at the address provided herein. Notice shall be deemed delivered when the notice is deposited with the United States Post Office, first class postage prepaid. 10. Defaults: Should Lessee default in the payment of any rental, or otherwise default in the performance of any term or condition of this agreement, Lessor may immediately re-enter and re-take possession of the premises, or any part thereof, without notice and without the necessity of resorting to any legal action whatsoever, without such re-entry working a forfeiture of the rents to be paid, or at its option, Lessor may cancel this lease and re-enter and re-take possession. 11. Access: There is further reserved unto the Lessor, its successors and assigns, the right of access and entry upon the lands to make field inspections, examinations, soil tests, and other evaluations in connection with a determination of the highest and best use of the lands herein leased. 12. Hold Harmless - Liability Insurance: Lessor shall not be liable in any manner to the Lessee, or to any other party or parties, for any loss, cost, damage or injury arising out of or in any manner connected with the use of said leased premises, or any part thereof, or arising out of or in any manner connected with the condition thereof or the previous maintenance thereof. Lessee shall indemnify and hold Lessor harmless from any and all injury, cost, loss, liability, expense or damage, or claim thereof. 13. Miscellaneous Covenants and Provisions: a. Lessee agrees that he will not use or permit the use of the demised premises contrary to any valid laws of the State of Montana or ordinance of the County of Gallatin and City of Bozeman and will save Lessor harmless from any and all claims for damages which may be sustained by reason of anything which may occur upon said premises or arise from the use or occupancy thereof by the Lessee. b. The covenants and conditions of this Lease shall be deemed continuing and any forbearance by Lessor to enforce forfeiture on the occasion of one or more breaches thereof shall not be construed as a waiver of the right to enforce such forfeiture on any subsequent breach. C. It is mutually agreed and understood that in the event either party hereto shall bring any legal action against the other to enforce any right or obligation based upon this Lease, the successful party in such legal action shall be entitled to recover in such action a judgment for all costs and expenses of any kind and nature whatsoever incident to the prosecution or defense of such action or the preparation thereof, including reasonable attorney's fees. d. It is mutually understood and agreed that time shall be of the essence of this agreement and that the terms hereof shall bind the heirs,personal representatives, successors and assigns of the parties hereto,but nothing in this paragraph shall be construed as a consent by the Lessor to any assignment of this Lease, or any interest therein by the Lessee, except as provided in paragraph 6 of this Lease. C. It is mutually understood and agreed that all prior understandings of the parties, either written or oral, are merged herein and this document constitutes the entire understanding of the parties. IN WITNESS WHEREOF, the parties hereto have set their hands and seal the day and year first above written. LESSOR: CITY OF BOZEMAN By: Chris A. Kukulski City Manager ATTEST: Stacy Ulmen City Clerk STATE OF MONTANA ) ss. County of Gallatin ) On this day of , 2008, before me, the undersigned a Notary Public for the State of Montana, personally appeared CHRIS A. KUKULSKI and STACY ULMEN, known to me to be the City Manager and City Clerk, respectively, of the City of Bozeman and the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same for and on behalf of the City of Bozeman. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first above written. (SEAL) Notary Public for the State of Montana (Printed Name of Notary Public) Residing at My commission expires LESSEE: Steve G. Dayhuff STATE OF MONTANA ) ss. County of Gallatin ) On this 05 day of , 2008, before me, the undersigned, a Notary Public for the State f Mon a, personally appeared STEVEN G. DAYHUFF, known to me to be the person whos ame is subscribed to the within instrument and acknowledged to me that he executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first above written. (SEAL) \NbtdrAPublic for the State of Montana e- (Printed Name o Notary Public) Residing at 7 7 t, ' ti My commission expres y�������j,�./