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Signed Contract/Lease_William Siegert Farm leaseCity of Dubuque ITEM TITLE: SUMMARY: SUGGESTED DISPOSITION: ATTACHMENTS: Description A Cut Above Contract Wiliam Siegert Farm Lease 2020 DMASWA Waste Delivery Contract Copyrighted April 6, 2020 Consent Items # 20. Signed Contract(s) A Cut Above contract for Grinding and Removal of Tree Stumps; 2020 Farm Lease with William Siegert; Dubuque Metropolitan Area Solid Waste Agency Waste Delivery Contract Suggested Disposition: Receive and File Type Supporting Documentation Supporting Documentation Supporting Documentation Masterpiece on the Mississippi Dubuque AII-Ameriea Illy ti,ikx1'LCIVIC 2007*2012*2013 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director SUBJECT: 2020 William Siegert Farm Lease DATE: March 24, 2020 Economic Development Department 1300 Main Street Dubuque, Iowa 52001-4763 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org INTRODUCTION This memorandum presents the details of the most recent lease negotiated with Mr. William Siegert for the City -owned land that he leases for farming purposes. BACKGROUND In 1997, the City purchased two farms from William and Janet Siegert as part of the acquisition of future industrial park property. The City entered into a 10-year lease, followed by a three-year extension and a one-year extension, where the family was allowed to continue to use the land for agricultural purposes. In 2011, the City began plans for the creation of the Dubuque Industrial Center South, which required deconstruction of buildings, grading, and paving on the 110-acre site. In 2014, Mr. Siegert requested a new lease for approximately 7.8 acres of property within the boundary of the Dubuque Industrial Center South that resides within the floodway. The lease allowed Mr. Siegert access to the property for agricultural purposes on a year-to-year basis unless a timely notice of termination was given by either the landlord or tenant. The rate for the property was $225 annually an acre. DISCUSSION According to information provided by Mr. Siegert (and confirmed by staff), 2.7 acres of his leased land was recently acquired by the State of Iowa (DOT) to build an access road to the landfill. Mr. Siegert reduced his March 2019 payment to reflect the acres lost. He remitted a payment of $1,147.50 representing 65% of the lease agreement. (5.1 acres / 7.8 acres = 65%). Then -Finance Director Jean Nachtman agreed that this was a fair exchange and directed Finance staff to accept the lowered payment. No notice was given by either party in September 2019 that the lease would not be renewed. Senior Counsel Barry Lindahl indicated to our department in March 2019 that we should draft an amended lease to reflect the new, lower acreage. The attached 2020 lease maintains the rate of $225/acre, reduces the acreage to 3.5 acres, and adds a clause that the lease must be renewed each year, without automatic renewals. RECOMMENDATION/ ACTION STEP I respectfully request your countersignature on the attached lease. 2 CITY OF DUBUQUE FARM LEASE AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND WILLIAM SIEGERT This arm ease Agreement ("Lease") dated for reference purposes the day of , 2020, is made between City of Dubuque, Iowa ("Landlord"), whose a ress for the purpose of this Lease is 50 West 13th Street, Dubuque, Iowa 52001 and William Siegert ("Tenant"), whose address for the purpose of this Lease is 13828 Old Highway Road, Dubuque, Iowa, 52002. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: SECTION 1. PREMISES AND TERM. 1.1 Landlord leases to Tenant the following real estate situated in Dubuque County, Iowa (the "Real Estate"): 3.5 acres (more or less) of tillable property east of the Landfill Access Road, north of Catfish Creek, and west of the Cousins Rd right-of-way. shown on attached Exhibit A. 1.2 Tillable Acres. Containing 3.5 tillable acres, more or Tess, with possession by Tenant fora term of from February 28, 2020, until midnight on March 1, 2021, and Lease will terminate on March 1, 2021 without notice. The Tenant has had or been offered an opportunity to make an independent investigation as to the acres and boundaries of the premises. In the event that possession cannot be delivered within fifteen (15) days after commencement of this Lease, Tenant may terminate this Lease by giving the Landlord notice in writing. SECTION 2. RENT. Tenant shall pay to Landlord as rent for the Real Estate (the "Rent"): a. Total annual cash rent as follows: 3.5 Tillable acres @ $225/acre for a total of $787.50: All Rent is to be paid to Landlord at the address above or at such other place as Landlord may direct in writing. Rent must be in Landlord's possession on or before the due date. Participation of this farm in any offered program by the U.S. Department of Agriculture or any state for crop production control or soil conservation, the observance of the terms and conditions of this program, and the division of farm program payments, requires Landlord's consent. Payments from participation in these programs shall be divided 0 % Landlord 100% Tenant. Governmental cost -sharing payments for permanent soil conservation structures shall be divided 0% Landlord 100% Tenant. Crop disaster 031620ba1 payments shall be divided 0 % Landlord 100 % Tenant. SECTION 3. LANDLORD'S LIEN AND SECURITY INTEREST. 3.1 As security for all sums due or which will become due from Tenant to Landlord, Tenant hereby grants to Landlord, in addition to any statutory liens, a security interest as provided in the Iowa Uniform Commercial Code and a contractual lien in all crops produced on the premises and the proceeds and products thereof, all contract rights concerning such crops, proceeds and/or products; all proceeds of insurance collected on account of destruction of such crops, all contract rights and U.S. government and/or state agricultural farm program payments in connection with the above described premises whether such contract rights be payable in cash or in kind, including the proceeds from such rights, and any and all other personal property kept or used on the real estate that is not exempt from execution. Tenant shall also sign any additional forms required to validate the security interest in government program payments. 3.2 Tenant shall not sell such crops unless Landlord agrees otherwise. Tenant shall notify Landlord of Tenant's intention to sell crop at least three (3) business days prior to sale of the crop (with business days being described as Monday through Friday, except any Iowa or federal holidays). Tenant shall pay the full rent for the crop year in which the crop is produced, whether due or not, at the time of sale pursuant to Landlord's consent to release Landlord's security interests. Upon payment in full Landlord shall release Landlord's lien on the crop produced in that crop year on the premises. The parties agree that by the Landlord releasing the lien as to the crop in one year, the Landlord in no way releases the lien or agrees to release the lien in any prior or subsequent year. 3.3 Tenant shall sign and deliver to Landlord a list of potential buyers of the crops upon which Landlord has been granted a security interest in this lease. Unless Landlord otherwise consents, Tenant will not sell these crops to a buyer who is not on the potential list of buyers unless Tenant pays the full rent due for the crop year to the Landlord at or prior to the date of sale, Landlord may give notice to the potential buyers of the existence of this security interest. 3.4 Landlord is further granted the power, coupled with an interest, to sign on behalf of Tenant as attorney -in -fact and to file one or more financing statements under the Iowa Uniform Commercial Code naming Tenant as Debtor and Landlord as Secured Party and describing the collateral herein specified. Tenant consents to the financing statement being filed immediately after execution of this Lease. SECTION 4. INPUT COSTS AND EXPENSES. 4.1 Tenant shall prepare the Real Estate and plant such crops in a timely fashion as may be directed by Tenant (Landlord) (Tenant). Tenant shall only be entitled to pasture or till those portions of the Real Estate designated by Landlord. All necessary machinery and equipment, as well as labor, necessary to carry out the terms of this lease shall be furnished by and at the expense of the Tenant. The following materials, in the amounts 2 required by good husbandry, shall be acquired by Tenant and paid for by the parties as follows: % Landlord % Tenant (1) Commercial Fertilizer 100 (2) Lime and Trace Minerals 100 (3) Herbicides 100 (4) Insecticides 100 (5) Seed 100 (6) Seed cleaning 100 (7) Harvesting and/or Shelling 100 (8) Grain Drying Expense 100 (9) Grain Storage Expense 100 (10) Other 100 Phosphate and potash on oats or beans shall be allocated NA % the first year and NA% the second year, and on all other crops allocated NA % the first year and NA %° the second year. Lime and trace minerals shall be allocated over NA years. If this Lease is not renewed, and Tenant does not therefore receive the full allocated benefits, Tenant shall be reimbursed by Landlord to the extent Tenant has not received the benefits. Tenant agrees to furnish, without cost, all labor, equipment and application for all fertilizer, lime, trace minerals and chemicals NA SECTION 5. PROPER HUSBANDRY; HARVESTING OF CROPS; CARE OF SOIL, TREES, SHRUBS AND GRASS. 5.1 Tenant shall farm the Real Estate in a manner consistent with good husbandry, seek to obtain the best crop production that the soil and crop season will permit, properly care for all growing crops in a manner consistent with good husbandry, and harvest all crops on a timely basis. In the event Tenant fails to do so, Landlord reserves the right, personally or by designated agents, to enter upon the Real Estate and properly care for and harvest all growing crops, charging the cost of the care and harvest to the Tenant, as part of the Rent. 5.2 Tenant shall timely control all weeds, including noxious weeds, weeds in the fence rows, along driveways and around buildings throughout the premises. 5.3 Tenant shall comply with all terms of the conservation plan and any other required environmental plans for the leased premises. 5.4 Tenant shall do what is reasonably necessary to control soil erosion including, but not limited to, the maintenance of existing watercourses, waterways, ditches, drainage areas, terraces and tile drains, and abstain from any practice which will cause damage to the Real Estate. 3 5.5 Upon request from the Landlord, Tenant shall by August 15 of each lease year provide to the Landlord a written listing showing all crops planted, including the acres of each crop planted, fertilizers, herbicides and insecticides applied showing the place of application, the name and address of the applicator, the type of application and the quantity of such items applied on the lease premises during such year. 5.6 Tenant shall distribute upon the poorest tillable soil on the Real Estate, unless directed otherwise by Landlord, all of the manure and compost from the farming operation suitable to be used. 5.7 Tenant shall not remove from the Real Estate, nor burn, any straw, stalks, stubble, or similar plant materials, all of which are recognized as the property of Landlord. Tenant may use these materials, however, upon the Real Estate for the farming operations. Tenant shall protect all trees, vines and shrubbery upon the Real Estate from injury by Tenant's cropping operation or livestock. 5.8 Tenant shall maintain accurate yield records for the real estate, and upon request, during or after lease term, shall disclose to Landlord, all yield base information required for participation in government program SECTION 6. ENVIRONMENTAL. 6.1 Landlord. a. Neither Landlord nor, Landlord's former or present tenants, are subject to any investigation concerning the premises by any governmental authority under any applicable federal, state, or local codes, rules, and regulations pertaining to air and water quality, the handling, transportation, storage, treatment, usage, or disposal of toxic or hazardous substances, air emissions, other environmental matters, and all zoning and other land use matters. b. Any handling, transportation, storage, treatment, or use of toxic or hazardous substances that has occurred on the premises has been in compliance with all applicable federal, state, and local codes, rules, and regulations. c. No leak, spill release, discharge, emission, or disposal of toxic or hazardous substances has occurred on the premises. d. The soil, groundwater, and soil vapor on or under the premises is free of toxic or hazardous substances except for chemicals (including without limitation fertilizer, herbicides, insecticides) applied in conformance with good farming methods, applicable rules and regulations and the label directions of each chemical. e. Landlord shall hold Tenant harmless against liability for removing solid waste disposal sites existing at the execution of this Lease, with the exception that 4 Tenant shall be liable for removal of solid waste disposal sites to the extent that the Tenant created or contributed to the solid waste disposal site at any time. f. Landlord shall assume liability and shall indemnify and hold Tenant harmless against any liability or expense arising from any condition which existed, whether known or unknown, at the time of execution of the lease which is not a result of actions of the Tenant or which arises after date of execution, but which is not a result of actions of the Tenant. g. Landlord shall disclose in writing to Tenant the existence of any known wells, underground storage tanks, hazardous waste sites, and solid waste disposal sites. Disclosure may be provided by a properly completed groundwater hazard statement to be supplemented if changes occur. 6.2 Tenant. a. Tenant shall comply with all applicable environmental laws concerning application, storage and handling of chemicals (including, without limitation, herbicides and insecticides) and fertilizers. Tenant shall apply any chemicals used for weed or insect control at levels not to exceed the manufacturer's recommendation for the soil types involved. Farm chemicals (may) (may not) be stored on the premises for more than one year. Farm chemicals for use on other properties (may) (may not) be stored on this property. Chemicals stored on the premises shall be stored in clearly marked, tightly closed containers. No chemicals or chemical containers will be disposed of on the premises. Application of chemicals for agricultural purposes per manufacturer's recommendation shall not be construed to constitute disposal. b. Tenant shall employ all means appropriate to ensure that well or ground water contamination does not occur and shall be responsible to follow all applicator's licensing requirements. Tenant shall install and maintain safety check valves for injection of any chemicals and/or fertilizers into an irrigation system (injection valve only, not main well check valve). Tenant shall properly post all fields (when posting is required) whenever chemicals are applied by ground or air. Tenant shall haul and spread all manure on appropriate fields at times and in quantities consistent with environmental protection requirements. Tenant shall not dispose of waste oil, tires, batteries, paint, other chemicals or containers anywhere on the premises. Solid waste may not be disposed of on the premises. Dead livestock may not be buried on the premises. Tenant shall not use waste oil to suppress dust on any roads on or near the premises. No underground storage tanks. c. Tenant shall immediately notify Landlord of any chemical discharge, leak, or spill which occurs on premises. Tenant shall assume liability and shall indemnify and hold Landlord harmless for any claim or violation of standards which results from Tenant's use of the premises. Tenant shall assume defense of all claims, 5 except claims resulting from Landlord's negligence, in which case each party shall be responsible for that party's defense of any claim. After termination, Tenant shall remain liable for violations which occurred during the term of this Lease. SECTION 7. POSSESSION AND CONDITION AT END OF TERM. At the termination of this Lease, Tenant will relinquish possession of the Real Estate to the Landlord. If Tenant fails to do so Tenant agrees to pay Landlord $200.00 per day, as liquidated damages until possession is delivered to Landlord. At the time of delivery of the Real Estate to Landlord, Tenant shall assure that the Real Estate is in good order and condition, and substantially the same as it was when received by Tenant at the commencement of this Lease, excusable or insurable loss by fire, unavoidable accidents and ordinary wear, excepted. SECTION 8. LANDLORD'S RIGHT OF ENTRY AND INSPECTION. In the event notice of termination of this Lease has been properly served, Landlord may enter upon the Real Estate or authorize someone else to enter upon the Real Estate to conduct any normal tillage or fertilizer operation after Tenant has completed the harvesting of crops even if this is prior to the date of termination of the lease. Landlord may enter upon the Real Estate at any reasonable time for the purpose of viewing or seeding or making repairs, or for other reasonable purposes. SECTION 9. VIOLATION OF TERMS OF LEASE. If Tenant or Landlord violates the terms of this Lease, the other may pursue the legal and equitable remedies to which each is entitled. Tenant's failure to pay any Rent when due shall cause all unpaid Rent to become immediately due and payable, without any notice to or demand upon Tenant. SECTION 10. REPAIRS. Tenant shall maintain the fences on the leased premises in good and proper repair. Landlord shall furnish necessary materials for repairs that Landlord deems necessary within a reasonable time after being notified of the need for repairs. Tenant shall haul the materials to the repair site without charge to Landlord. SECTION 11. NEW IMPROVEMENTS. All buildings, fences and improvements of every kind and nature that may be erected or established upon the Real Estate during the term of the Lease by the Tenant shall constitute additional rent and shall inure to the Real Estate, becoming the property of Landlord unless the Landlord has agreed in writing prior to the erection that the Tenant may remove the improvement at the end of the lease. SECTION 12. WELL, WINDMILL, WATER AND SEPTIC SYSTEMS. Tenant shall maintain all well, windmill, water and septic systems on the Real Estate in good repair at Tenant's expense except damage caused by windstorm or weather. Tenant shall not be responsible for replacement or installation of well, windmill, water and septic systems on the Real Estate, beyond ordinary maintenance expenses. Landlord does not guarantee continuous or adequate supplies of water for the premises. SECTION 13. EXPENSES INCURRED WITHOUT CONSENT OF LANDLORD. No expense shall be incurred for or on account of the Landlord without first obtaining 6 Landlord's written authorization. Tenant shall take no actions that might cause a mechanic's lien to be imposed upon the Real Estate. SECTION 14. NO AGENCY. Tenant is not an agent of the Landlord. SECTION 15. ATTORNEY FEES AND COURT COSTS. If either party files suit to enforce any of the terms of this Lease, the prevailing party shall be entitled to recover court costs and reasonable attorneys' fees. SECTION 16. CHANGE IN LEASE TERMS. The conduct of either party, by act or omission, shall not be construed as a material alteration of this Lease until such provision is reduced to writing and executed by both parties as addendum to this Lease. SECTION 17. CONSTRUCTION. Words and phrases herein, including the acknowledgment, are construed as in the singular or plural and as the appropriate gender, according to the context. SECTION 18. NOTICES. The notices contemplated in this Lease shall be made in writing and shall either be delivered in person, or be mailed in the U.S. mail, certified mail to the recipient's last known mailing address, except for the notice of termination set forth in Section 7, which shall be governed by the Code of Iowa. SECTION 19. ASSIGNMENT. Tenant shall not assign this Lease or sublet the Real Estate or any portion thereof without prior written authorization of Landlord. SECTION 20. CERTIFICATION. Tenant certifies that it is not acting, directly or indirectly, for or on behalf of any person, group, entity or nation named by any Executive Order or the United States Treasury Department as a terrorist, "Specially Designated National and Blocked Person" or any other banned or blocked person, entity, nation or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control; and it is not engaged in this transaction, directly or indirectly on behalf of, or instigating or facilitating this transaction, directly or indirectly on behalf of, any such person, group, entity or nation. Tenant hereby agrees to defend, indemnify and hold harmless Landlord from and against any and all claims, damages, losses, risks, liabilities and expenses (including attorney's fees and costs) arising from or related to any breach of the foregoing certification. SECTION 21. ADDITIONAL PROVISIONS. 21.1 Tenant shall utilize contour cultivation and other generally accepted husbandry techniques to minimize erosion and shall follow NRCS Programs to minimize soil loss and impact regardless if they participate in the program or not. 21.2 No mining or harvest of trees shall be done without prior written consent of the City of Dubuque. 7 21.3 Tenant assumes all liability and shall defend, indemnify and hold harmless the City of Dubuque, its officials and employees for all causes of action arising out of the use of said property. 21.4 It is expressly understood that said ground is rented for the production and harvesting only of corn and/or small grains production; and that all stover must remain in place. 21.5 Tenant shall maintain during the term of this Lease insurance as set forth in the City's standard Insurance Schedule D or most current schedule at time of lease for Farm Tenant. 21.6. Tenant agrees that the Lease terminates March 1, 2021 without notice. TENANT: LANDLORD: William Siegert Michael Van Milligen, City Manager 8 STATE OF IOWA, COUNTY OF DUBUQUE This record was acknowledged before me this / 9 j day of 6 Cf % , 2020, by William Siegert. Oyu x CYNTHIA J HILKIN Commission Number 763298 try WIlllission Expires / Q ig a - STATE OF IOWA, COUNTY OF DUBUQUE This record was acknowledged before me this day of 2020 by Michael C. Van Milligen as City Manager of the City of Dubuque. Signature of Notary Public 9 EXHIBIT A PLASTIC CENTER, INC CITY OF DUBUQUE .v elaaeYea eon*,oid afadeeGe6 mn: .x:tmrglMtlr db.*. Rd Gq eyed sal dab], sidectends useradraeoledgestbd,bided. OOWaalk ded use an des na Mee. ae aaeayw.encror ne seam a, naaa cart311n ben E, use of M ...de, be user weed, Pe OI, rt w1 ptmm a Mentor any n eekeep ataee a mManed lade barybe, tanage.rc ao,.Q.eusetar,2ed of rtb¢ m.eebernebn. Farm Lease Area Lease Boundary 1 inch = 200 feet 0 100 200 Feet W PLASTIC CENTER, INC Proposed Lease Area (3 5 Acres) =City of Dubuque Property CITY OF DUBUQUE if 1 `Subject to Survey Verification created by: TWK 2019-11-15 updated by: TWK 2020-03-16 Imagery Date: 01/2020 10 CITY OF DUBUQUE INSURANCE SCHEDULE D 11 City of Dubuque Insurance Requirementsfor Farm Tenant INSURANCE SCHEDULE D 1. Wlliam Siegert shall furnish a signed certificate of insurance to the City of Dubuque, Iowa for the coverage required in Exhibit I prior to contract or lease commencement. Tenant shall submit an updated certificate annually. Each certificate shall be prepared on the most current ACORD form approved by the Department of Insurance or an equivalent approved by the Director of Finance and Budget. Each certificate shall include a statement under Description of Operations as to why issued. Eg: Farm Lease Agreement dated 2. All policies of insurance required hereunder shall be with an insurer authorized to do business in Iowa and all insurers shall have a rating of A or better in the current A.M. Best's Rating Guide. 3. Each certificate shall be furnished to the Finance Department of the City of Dubuque. 4. Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the City of Dubuque. Failure to obtain or maintain the required insurance shall be considered a material breach of this contract/Lease. 5. All required endorsements to various policies shall be attached to, certificate of insurance. 6. Whenever a specific ISO form is Listed, the current edition of the form must be used unless an equivalent form is approved by the Director of Finance and Budget and subject to the tenant identifying and listing in writing all deviations and exclusions that differ from the ISO form, 7. The tenant shall be required to carry the minimum coverage/limits, or greater if required by or other legal agreement, in Exhibit I. If the tenant's limits of liability are higher than the required minimum limits then the tenant's limits shall be lease required limits. Tenant shall be responsible for deductibles and self -insured retention. Page 1 of 2 Schedule D Farm Tenant May 2019 12 City of Dubuque Insurance Requirements for Farm Tenant INSURANCE SCHEDULE D (continued) EXHIBIT I A) DWELLING, OTHER BUILDINGS: Value: 1) Included the City of Dubuque as Lender Loss Payable. 2) Written on replacement cost basis. B) FARM LIABILITY: Farm Liability Per Occurrence $1,000,000 C) WORKERS COMPENSATION Statutory Benefits covering all employees injured on the job by accident or disease as prescribed by Iowa Code Chapter 85 Coverage A. Coverage B Statutory —State of Iowa Employers Liability Each Accident Each Employee -Disease Policy Limit -Disease $100,000 $100,000 $500, 000 Policy shall include Waiver of Right to Recover from Others endorsement. Coverage B limits shall be greater if required by the umbrella/excess insurer. OR Nonelection of Workers' Compensation or Employers' Liability Coverage under Iowa Code sec. 87,22 Completed form must be attached. POLLUTION LIABILITY Coverage required: yes X no. Pollution Liability Coverage $1,000,000 1) Include additional insured endorsement for: The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees and volunteers. Use ISO form CG 20 10 (Ongoing operations) or its equivalent. 2) Pollution Liability shall include chemical application, storage, transportation, environmental damage clean up. (DEPARTMENT MANAGER: FILL IN ALL BLANKS AND CHECK BOXES) Page 2 of 2 Schedule D Farm Tenant May 2019 13