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Home My WebLink AboutC5. Final Ord 19251 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Director of Economic Development SUBJECT: Final Adoption of Ordinance No. 1925 Authorizing the City Manager to Enter into a 12-month Ground Lease with Bill Tatarka for the Lease of the 85.35-acre North Park [Mandeville Farm] Property for the Purpose of Farming. MEETING DATE: April 25, 2016 AGENDA ITEM TYPE: Consent [affirmative vote of two-thirds (2/3) of the Commission required] RECOMMENDATION: Approve, on second reading by 2/3 vote, Ordinance No. 1925 authorizing the City Manager to enter into a 12-month ground lease with Bill Tatarka for the purpose of farming on the North Park [Mandeville Farm] property. (Exhibit 1) BACKGROUND: On April 11, 2016, the City Commission approved Ordinance 1925 by 2/3 vote on first read via the Commission’s Consent agenda. The City of Bozeman has leased the 85.35-acre North Park property to local farmers since the property was purchased by the City in 2003. Bill Tatarka has leased the property since January 1, 2008 for the purpose of farming. In the past, this lease has been approved with terms of 24 and 15 months, however, with the sale of the North Park property pending, the term was reduced to 12 months. (Exhibit 2) The North Park property is currently under contract for sale. (Exhibit 3) The closing date is anticipated prior to the close of FY 16. On page 10 of the North Park Purchase and Sale Agreement, Section 24, Leases and Easements, the 12-month agricultural ground lease for the with Mr. Tatarka is acknowledged and will be assigned to the new owners upon closing. Anticipated buyers of the North Park property have acknowledged that they prefer the property remain in agricultural use over the next twelve months. Per the lease terms, 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 based upon the crop harvest. 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 36 2 lands of the city.” Additionally, 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. This Ordinance is not codified but will be maintained 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 $25,500 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 1925; 2) 2016 agricultural lease for the North Park property; and 3) North Park Purchase and Sale Agreement dated March 23, 2016. Report compiled on: April 14, 2016 37 ORDINANCE 1925 Page 1 of 4 ORDINANCE NO. 1925 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 stipulates that the current lease will be observed; and WHEREAS, the current lease expires on March 31, 2016; and WHEREAS, Micropolitan Enterprises, LLC and Powder River Company, LLC have agreed in writing to extend the agricultural lease for one year (April 1, 2016 – March 31, 2017); and 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 38 ORDINANCE 1925 Page 2 of 4 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 1925 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. 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. 39 ORDINANCE 1925 Page 3 of 4 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 11th of April, 2016. ___________________________________________ CARSON TAYLOR Mayor ATTEST: _______________________________ PEARL MICHALSON Interim City Clerk 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 25th day of April, 2016. The effective date of this ordinance is May 25, 2016. ______________________________________ CARSON TAYLOR Mayor ATTEST: 40 ORDINANCE 1925 Page 4 of 4 _______________________________ PEARL MICHALSON Interim City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58