HomeMy WebLinkAbout15- Lyman Creek Management LLC Agricultural Lease City of Bozeman-City Clerk
P.O. Box 1230
Bozeman, MT 59771-1230
AGRICULTURAL LEAwwS��E
rd
THIS AGREEMENT, made and entered into this day of ,2015 (the
"Effective Date"), by and between the City of Bozeman, a municipal corporatioll located at 121
North Rouse Avenue,Bozeman,Montana 59715,hereinafter referred to as LESSOR, and Lyman
Creek Management LLC,with an address of 215 Glenwood Drive,Houston, TX 77007,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 of real property situated, lying and being in the County of Gallatin, State of
Montana, and more particularly described as follows:
NW 1/4,NW 1/a, Section 28 Township 1 South,Range 6 East,P.M.M. containing an
area of 40 acres more or less.
2. Term:
To have and to hold said premises according to the provisions hereof for a period of
two (2) years from and after the Effective Date, 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. Rental:
Lessee shall pay to the Lessor, as rental for the demised premises,the sum of Four
Hundred and No/100 Dollars ($400)per annum,payable annually in advance to Lessor at its office
in Bozeman, Montana. The initial lease payment shall be made within 30 days after the execution of
this Lease by both parties. Payment for subsequent year(s) shall be due on the anniversary of the
Effective Date.
4. Repairs and Improvements:
Lessee agrees to protect all improvements upon said premises and to keep the same in
as good of a condition as existed on the date of this lease and bear all expenses of repairing fences,
and other improvements. Any new improvements made during this lease shall remain on the land as
property of the Lessor unless otherwise excepted by the terms of this lease.
5. Use of Premises:
Lessee agrees that he will not use, or permit to be used, any part of said premises for
any other purpose than grazing without the prior written consent of the Lessor. Lessee further agrees
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to comply with all State and County laws and regulations regarding the control of noxious weeds at
the sole expense of the Lessee and to hold Lessor harmless from said control of noxious weeds.
Lessee agrees to commit no waste upon the property.
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:
Lessee 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 and undomesticated animals alone
excepted.
8. Termination:
Either party hereby reserves, and each party grants to the other,the right to terminate
this Lease at any time upon sixty (60) days written notice if a party in its sole discretion decides that
such termination is in its best interest; provided,however, in the event of such termination,that if the
Lessee shall have paid rental in advance for the period during which this lease is cancelled, an
amount shall be repaid to Lessee proportionate to the unexpired period for which the rental has been
paid in advance.
9. Notice to Lessee:
Notice may 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
material performance of any term or condition of this agreement,which default has not been cured
after 30 days notice by Lessor to Lessee, 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.
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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 this lease, or
arising out of or in any manner connected with the condition of the leased premises or the previous
maintenance or use thereof. Lessee shall indemnify, defend and hold Lessor harmless from any and
all injury, cost, loss, liability, expense or damage, or claim arising out of or in any manner connected
with the Lessee's use of the leased premises, or any part thereof. Lessee waives any and all claims
and recourse against the City or its officers, agents or employees, including the right of contribution
for loss or damage to person or property arising from or in any way connected with or incident to
this lease except"responsibility for [the City's] own fraud,for willful injury to the person or
property of another, or for violation of law, whether willful or negligent" as per 28-2-702,MCA.
Lessee agrees to at Lessee's expense procure and maintain for the duration of this
lease property and liability insurance against the liabilities and obligations assumed by the Lessee in
this Section 12,through an insurance company duty licensed and authorized to conduct insurance
business in Montana, in amounts of not less than$1,000,000 per occurrence, $2,000,000 annual
aggregate. The City of Bozeman and its officers, agents, and employees shall be endorsed as an
additional or named insured on a primary non-contributory basis. The insurance and required
endorsements must be in a form suitable to the Lessor and shall include no less than a sixty (60) day
notice of cancellation or non-renewal. Lessee shall notify Lessor within two (2)business days of
Lessee's receipt of notice that any required insurance coverage will be terminated or Lessee's
decision to terminate any required insurance coverage for any reason. Lessor must approve all
insurance coverage and endorsements prior to the Lessee commencing any activities on the leased
premises.
13. Miscellaneous Covenants and Provisions:
a. Lessee agrees that he will not use or permit the use of the demised premises
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contrary to any valid laws of the State of Montana or ordinance of the County of Gallatin or City of
Bozeman.
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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
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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
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c.
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.
e. 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.
f. The parties agree that this lease is governed by and construed in accordance
with the laws of the State of Montana,regardless of its principles of conflicts of law. The parties
expressly agree to the exclusive jurisdiction of the courts located in Gallatin County,Montana.
14. Discrimination:
Lessee agrees not to discriminate in the fulfillment of this agreement on the basis of race,
color,religion, creed, sex, age,marital status,national origin, or actual or perceived sexual
orientation, gender identity or disability.
**END OF AGREEMENT EXCEPT FOR SIGNATURE PAGES**
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IN WITNESS WHEREOF, the parties hereto have set their hands and seal the day and year
first above written.
LESSOR:
CITY OF BOZEMAN
By: '7a
Chris A. Kukulski
City Manager
ATTE ': `®q ,
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STATE OF MONTANA )
ss.
County of Gallatin )
On this day of ,2015,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.
HEATHER BIENVE1%U
roY Notary Public
zP•'No7n y�• the State of Montana
m' Residing at: 4
'N .SEAL ,*Q; Bozeman Montana
Notary Public for the State of Montana .
' My Commission Expires:
January 26, 2018
«_ (Printed Name of Notary Public)
Residing at
My commission expires
5
Authorized Representative of LESSEE:
an Gillilan
STATE OF TEXAS )
ss.
County of Harris
On this t day of ,2015,before me,the undersigned,
a Notary Public for the State of Texas,personally ppeared LANCE GILLILAND on behalf of
Lyman Creek Management LLC,known to me to be the person whose name 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)
014t-a
No ('rj�(,�/7^JPublic fol the State of Texas
1-to-rns
ANA HARRISON (Printed Nam f Notary Public)
My Commission Expires Residing at +Li d Lk dl
August 22,2018
My commission expires C)
6
Authorized Representative of LESSEE:
Siri Gilliland
STATE OF TEXAS )
) ss.
County of Harris /, )
On this 7v` day of k4 ,2015,,before me,the undersigned,
a Notary Public for the State of Texas,personally&peared SIRI GILLILAND on behalf of Lyman
Creek Management LLC,known to me to be the person whose name 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 axed my Notarial Seal the day
and year first above written.
(SEAL)
NM Public for the State of Texas
(Printed N
aniq qf Notary Public)
ANA HARRISON Residing at u—n
My Commission Expires M commission expires
— 6
� August 22,2018 Y P
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Ga
ORDINANCE NO. 1912
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A 2-YEAR
GROUND LEASE WITH LYMAN CREEK MANAGEMENT LLC FOR THE LEASE OF
PROPERTY AT THE LYMAN WATER TREATMENT PLANT FOR AGRICULTURAL
PURPOSES.
WHEREAS, the City of Bozeman has leased property at the Lyman Water Treatment
Plant to Donald Dodge for agricultural purposes since 1984; and
WHEREAS, Donald Dodge is deceased and Lance and Siri Gilliland have purchased
real property located at 3185 Bridger Canyon Road, Bozeman, Montana from Donald Dodge's
estate; and
WHEREAS, the term of the most recent agricultural lease with Donald Dodge ended on
June 20, 2014; and
WHEREAS, Lance and Siri Gilliland through their limited liability company desire to
continue leasing the property for agricultural purposes; and
WHEREAS, the lease of this property benefits the public interest because the land's use
for agricultural purposes lessens the City's resources necessary to maintain it; and
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WHEREAS, the lease requires Lessee to control noxious weeds; and
WHEREAS, Section 2.11 of the Bozeman City Charter requires adoption of an
ordinance when the City conveys, leases or authorizes the conveyance of any lands of the City; [I
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
ORDINANCE 1912
Pagel of 3
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WHEREAS, should this Ordinance never be finally adopted by the Bozeman 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 Bozeman City Commission hereby authorizes the City Manager to enter into the three-year
ground lease attached as Exhibit A with Lyman Creek Management LLC. The lease is
incorporated herein by reference and made a part of this Ordinance. Final execution of the lease
is dependent on final adoption of this Ordinance 1912 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 in Bozeman not in conflict with the provisions of this ordinance shall remain in full
force and effect.
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 fall
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 Instruction.
The provisions of this Ordinance shall not be codified in the Bozeman Municipal Code;
rather, this Ordinance shall be maintained by the City Clerk in an indexed file of all Ordinances
not to be codified.
ORDINANCE 1912
Page 2 of 3
Section 6
Effective Date.
This ordinance shall be in full force and effect 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 June 8, 2015.
ILC
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ATTEST:
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STA CY LM»N,
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City Clprt�
"A TIN C0
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 22nd of June, 2015.
The effective date of this ordinance is July 22, 2015.
KRAUSS
O syor
Bo-"'
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ATTEST;,,
STAG N
City G,lezk `f��1Veco °�`�o
APPROVED AS TO FORM:
, d
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'GRFG SULLIVAN
City Attorney
ORDINANCE 1912
Page 3 of 3