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Home My WebLink AboutC3. Prov Ord 19091 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Director of Economic Development SUBJECT: Ordinance No. 1909 authorizing the City Manager to enter into a 12- month ground lease with Bill Tatarka for the lease of the Mandeville Farm [North Park] property for the purpose of farming. MEETING DATE: April 13, 2015 AGENDA ITEM TYPE: Consent RECOMMENDATION: Approve Ordinance No. 1909 authorizing the City Manager to enter into a 12-month lease with Bill Tatarka for the purpose of farming on the Mandeville Farm [North Park] property. (Exhibit 1) BACKGROUND: The City of Bozeman has leased the Mandeville Farm [North Park] property to local farmers since it was purchased in 2003. Bill Tatarka has leased the property since January 1, 2008. In the past, this lease has been approved with terms of 24 months and 15 months; however, with the eventual sale of the North Park property we further reduced the term to 12 months. The North Park property is currently under contract for sale. The closing date is scheduled on or before August 18, 2015. In the original Purchase and Sale Agreement, the 15-month lease with Mr. Tatarka was acknowledged in the document. (Exhibit 2) Once the lease expires on April 1, 2014 and while the property is under contract for sale, it’s only with the consent of the buyers that we can enter into a new 12 month lease for agricultural activities on the North Park property. (Exhibits 3 - 5). Per the lease, Mr. Tatarka pays the City twenty-five percent of the value of any crop harvested, less the cost of chemicals used for weed control. The lease requires the lessee to control noxious weeds. The amount the City receives varies annually. Section 2.11 of the Bozeman City Charter requires the Commission to adopt an ordinance any time the Commission “convey(s), lease(es) or authorize(s) the conveyance or lease of any lands of the city.” Section 7-8-4201, Montana Codes Annotated (MCA) authorizes the City to lease property upon a vote of two-thirds (2/3) of the Commission which requires an affirmative vote of four members of the five member Bozeman City Commission. 103 2 This Ordinance is not codified but will be kept by the City Clerk and entered into a disposition list in numerical order with all other ordinances of the City and shall be organized in a category entitled “Conveyances and Leases of City Land.” FISCAL EFFECTS: The City has received approximately $25,000 since 2008. The property is used for farming purposes and the lessee is required to control weeds so the City does not incur the costs for maintenance. ALTERNATIVES: As suggested by the City Commission. Attachments: 1) Ordinance 1909; 2) Original Purchase and Sale agreement for the sale of the North Park property dated June 12, 2014; 3) 2014 North Park agricultural lease; 4) March 20, 2015 signed statement from the buyers agreeing to a 12 month agricultural lease for the North Park property; and 5) 2015 agricultural lease for the North Park property. Report compiled on: March 30, 2015 104 ORDINANCE 1909 Page 1 of 4 ORDINANCE NO. 1909 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A 12-MONTH GROUND LEASE WITH BILL TATARKA FOR THE LEASE OF MANDEVILLE FARM [NORTH PARK] PROPERTY, FOR THE PURPOSE OF FARMING. WHEREAS, the City of Bozeman desires to lease property at the Mandeville Farm [North Park], located on Red Wing Drive, for farming purposes as it has done since the property was purchased in 2003; and WHEREAS, said lease allows land to be grazed and/or farmed, with 25% of the value of any crop harvested from premises, less cost of chemicals used for weed control, up to $200 annually, to be paid to the City; and WHEREAS, Bill Tatarka has indicated his desire to renew said lease; and WHEREAS, the property is currently under contract for sale to Micropolitan Enterprises, LLC and Powder River Company, LLC; and WHEREAS, the purchase and sale agreement ratified on July 21, 2014, stipulates that the current lease will be observed; and WHEREAS, the current lease expires on March 31, 2015; and WHEREAS, Micropolitan Enterprises, LLC and Powder River Company, LLC have agreed in writing to extend the agricultural lease for one year (April 1, 2015 – March 31, 2016); and 105 ORDINANCE 1909 Page 2 of 4 WHEREAS, the lease of this property benefits the public interest because the land is used for agricultural purposes and lessens the City’s resources to maintain it; and WHEREAS, the lease requires lessee to control noxious weeds; and WHEREAS, Section 2.11 of the Bozeman City Charter requires the Commission to adopt an ordinance when the Commission "convey(s), lease(es)or authorize(s) the conveyance or lease of any lands of the city;" and WHEREAS, Section 7-8-4201, MCA, authorizes the City to lease property upon a vote of 2/3 of the Commission which requires an affirmative vote of four members of the five member Bozeman City Commission; and WHEREAS, should this Ordinance never be finally adopted by the City Commission, the lease shall have no binding effect. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 The City Commission hereby authorizes the City Manager to enter into the attached 12- month ground lease (Exhibit A) with Bill Tatarka for lease of the Mandeville Farm [North Park] property, located on Red Wing Drive, Bozeman, MT. The lease is incorporated herein by reference and made a part of this Ordinance. Final execution of the lease is dependent upon final adoption of this Ordinance 1909 and as such the City Manager cannot execute the lease until 30 days after second reading of this Ordinance. Section 2 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. 106 ORDINANCE 1909 Page 3 of 4 Section 3 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provision of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 4 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 5 Codification. This Ordinance shall not be codified but shall be kept by the City Clerk and entered into a disposition list in numerical order with all other ordinances of the City and shall be organized in a category entitled “Conveyances and Leases of City Land.” Section 6 Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption. PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 13th of April, 2015. ___________________________________________ JEFFREY K. KRAUSS Mayor ATTEST: _______________________________ STACY ULMEN, CMC City Clerk 107 ORDINANCE 1909 Page 4 of 4 FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the 27th day of April, 2015. The effective date of this ordinance is May 27, 2015. ______________________________________ JEFFREY K. KRAUSS Mayor ATTEST: _______________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 108 117109 118110 119111 120112 121113 122114 123115 124116 125117 126118 127119 128120 129121 130122 131123 132124 125 126 127 128 129 March 20, 2015 Jason Leep NAI Landmark Re: Tatarka Agricultural Lease on North Park Property Dear Jason: As you are aware, The City of Bozeman is currently in an Agricultural Lease in regards to the Buy-Sell Agreement by and between the City of Bozeman (“Seller”) and your clients Micropolitan Enterprises, LLC and Powder River Company, LLC and/or assigns (collectively, “Buyer”) dated the 12th day of June, 2014 including any Amendments is referred to herein as the “Buy-Sell Agreement,” for the following described real property (the “Property”) situated in Gallatin County, State of Montana, more particularly described as follows, to wit: Tracts 1-A, 2-A, 3-A, 4-A of Certificate of Survey 2153, situate in the NW1/4 of Section 36, Township 1 South, Range 5 East, PMM, Gallatin County, City of Bozeman, Montana. The Seller wishes to extent the agricultural lease between City of Bozeman and Bill Tatarka by one (1) year. The Agricultural Lease dated February 14, 2014 is attached. Please have your client execute below if they are in agreement with the Seller to execute the said lease extension prior to March 30, 2015. Note that the 2/14/2014 lease runs 15 months from and after January 1, 2014, so this extension will expire on March 31, 2015. If you have any questions, or would like to discuss this matter further, please contact me at your convenience. Sincerely, Michael Elliott Managing Broker 130 131 132 133 134 135 136 137