Bergfeld Farm Lease Ext.MEMORANDUM
July 14, 2003
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Bergfeld Farm Lease Extension
In 1997 the City purchased the 151-acre Bergfeld farm as part of the acquisition of
future industrial park property. The City entered into a 5-year lease of the property back
to the Bergfelds with a stipulation that if the property were needed for development, the
City reserved the dght to end the lease with certain "damage" payments related to crop
input costs that might result from an eady termination of the lease. The original lease
expired January 1, 2003. The Bergfelds have asked to continue the lease under the
same terms as the pdor lease.
Economic Development Director Bill Baum recommends City Council approval of a
3-year farm lease with Kenneth and Janet Bergfeld with terms that allow the City the
ability to terminate the lease at any time if the property is needed for development
purposes.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
July 14, 2003
TO:
FROM:
SUBJECT:
Michael Van Milligen, City Manager
William Baum, Economic Development Director
Bergfeld Farm Lease Extension
INTRODUCTION
This memorandum presents for City Council consideration a resolution approving a 3-
year extension of a farm lease with Kenneth and Janet Bergfeld.
BACKGROUND
In 1997, the City purchased the 151-acre Bergfeld farm as part of the acquisition of
future industrial park property. The City entered into a 5-year lease of the property back
to the Bergfelds with a stipulation that if the property were needed for development, the
City reserved the right to end the lease with certain "damage" payments related to crop
input costs that might result from an early termination of the lease. The original lease
expired January 1, 2003.
DISCUSSION
The Bergfelds have asked to continue the lease under the same terms as the prior
lease. Staff has reviewed the original lease terms and has determined that at
$120/acre, the rental rate continues to reflect current market rates. The acreage has
been reduced to 117 acres due to the platting a right-of-way for street and utilities
through the property. A 3-year lease term is recommended because the City has a
FY06 CIP to expand the Dubuque Industrial Center West into this property.
RECOMMENDATION
I would recommend entering into a 3-year farm lease with Kenneth and Janet Bergfeld.
The City's legal staff has prepared the lease with terms that allow the City the ability to
terminate the lease at any time if the property is needed for development purposes.
ACTION STEP
The action step for the City Council is to approve the attached resolution.
attachments
F:\USERS\Pm)hre\WPDOCS~bergfeldlease.mem.doc
RESOLUTION NO. 244-03
RESOLUTION APPROVING A FARM LEASE WITH KENNETH G, AND
JANET M. BERGFELD
Whereas, the City Council of the City of Dubuque, Iowa wishes to continue a
Farm Lease with Kenneth G. and Janet M. Bergfeld for certain property as described in
the attached lease; and
Whereas. it is the determination of this Council that approval of the Farm Lease,
according to the terms and conditions set out in the attached Farm Lease, is ~n the
public interest of the citizens of the City of Dubuque.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the attached Farm Lease by and between the City of Dubuque
and Kenneth G. and Janet M Bergfeld is hereby approved.
Section 2. That the Mayor is hereby authorized and directed to execute the Farm
Lease on behalf of the City and City Cterk is authorized and directed to attest to his
signature.
Section 3. That the City Manager is authorized to take such actions as are
necessary to comply with the terms of the Farm Lease as herein approved.
Passed, approved and adopted this 21st day of July, 2003.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
F:\US ERS~myhre\WPDOCSVoergfeldlease.res.doc
THE IOWA STATE BAR ASSOCIATION
Officia~ Form NO. 135 James A. O'Bden ISBA # 3F THE USE OF
THIS FORM, CONSULT YOUR LAWYER
nformation Jinxes ^. u t~nen, qv I West Fourth Street, Dubuque, Iowa 52001, (563) 556-8552
Individual's Name Street Address City
FARM LEASE - CASH OR CROP SHARES
Phone
SPACE ABOVE THIS LINE
FOR RECORDER
THIS LEASE ("Lease") is made between The Cit7 of Dubuque, Iowa, an Iowa Municipal Corporation
.City Hall, Dubuque, Iowa ( andlord ), whose address for the purpose of this Lease is
Kenneth G. BergfeId and Janet M. Bergfeld , and
address for the purpose of this Lease is 14085 Old Hwy Rd., Dubuque, Iowa
, ("Tenant"), whose
THE PARTIES AGREE AS FOLLOWS:
1. PREMISES AND TERM. Landlord leases to Tenant the following real estate situated in Dubuque
County, Iowa (the "Real Estate"):
See attached Exhibit A
Actual acreage leased shall be determined as set forth in Attachment A.
and containing apprx. 117 (total)(ffilable) acres, more or less, with possession by Tenant for a term of 3 years to
commence on 01/01/03 , and end on Januar7 1st , 2006 . The Tenant has had or been offered
an opportunity to make an independent investigation as to the acres and boundaries of the premises. [n 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 wrding.
2. RENT. Tenant shall pay to Landlord as rent for the Real Estate {the "Rent"):
$120.00 annually per acre rented.
a. Total annual cash rent of $ payable, unless otherwise agreed, as follows:
$ 1/2ofarmual on 1st dayof.~uly ,$ l/2ofarmual on 31st dayofDe
rent , and $ on day of rent .; or
I00 % Tenant,
% Landlord % Tenant
~~~~xxxxxxxxxxx~~xxxxxxxxxx~
~~~m~~~~~xxxxxxxxxxxxxxxx
5. PROPSR HUSBANDRY; HARVESTING O~ CROPS; CAR5 OF $0~, TRKK$, S~RUSS AND ~SS. Tenss~ shs~ fe~m ~he
~es~ 5s[s~e ~s a manse~ coms~s[e~ w~th good busbasd~, seek fe obtain the bes~ crop Dmdu~[o~ thai the so~ a~d crop season ~[~ De~,
Dro~e~y cede fe~ a~ g~owthg c~oDs ~s s m~n~e~ cens~s~e~ w~th good husbs~dU~ s~d ha~ves~ a]~ o~o~s o~ ~ fime~F b~s~s, th the even~
Iesas~ fe[~s fe do so, kssd~o~d rose.es ~he dgh~, Derson~F o~ by designs[ed age~s, ~o e~fe~ upos the Rea~ 5s[~fe and ~oDedy ~e for
asd h~ves~ ~ g~ow~g c~o~s~ chs~g~ng ~he ces~ of th~ os~e and hs~ves~ ~o the Te~an~, ~s D~ of th~ Re~L le~n[ sh~ timely oo~m~
weeds~ ~o~ud~g ~ox~ous weeds, weeds ~n the fesce ~ows, a~osg ddvewsys and s~ou~d ~u~d~sgs ~h~oughou~ the p~em[ces, le~
comD~y wRh a~ ~erms of ~he conservation D~ ~d a~y othe~ ~eguked e~v~ro~men~ ~s~s fo~ the ~esced D~em[ces. Ten~n~ sha~ do
dm~ssge s~ess, fe~sces ssd file dm[ss~ ~sd s~s~sth f~om asy prsct[ce W~[~h W~[~ ~use damsge fe the Res~
Upo~ ~equss[ f~om the kssd~o~d, Tenan~ sh~ by Augus~ ~ of ~ ~e~ce yea~ ~rov~de fe the [s~d~o~d a w~[[e~ ~s~thg showing
~ c~o~s ~sn[ed, [sctud~g the ~o~es ~ e~oh oroD D~ed, fe~[zers, herb~o~dss ~sd ~nsect~o~des a~D~sd showthg the ~ace
s~cefion, th~ nam~ ssd ~dd~ess of the ~ce~o~, ~he ~De o~ ~D~ca%~o~ a~d the ~u~nfi~y of such ~ems ~D~ed on ~he ~e~se
D~em~ses dudng such
Ie~s~[ shs~ d~sthbu~e uDos ~he ~oo~es~ fi~sb~e so~] on the Re~ 5s~fe, u~ess dk~ed othe~se by [~d~rd, ~]~ of the
s~d cemDce~ f~om the farming ope~a[~o~ su~sb~e fe be used. Temaki sh~]~ ~o~ mmou~ f~om the Rea~ 5s[~e, no~ bum~ ~y
s~a~ks, s~ubb~e~ o~ s~m~ar D~an~ ~a~eda]s, a~ of wh~oh am ~ecegn~zed as the pmDe~ of [asd~o~d. Tenam~ may use these
howeve~, uDos the Re~ 5s[s[e ~o~ the fermis9 o~ers~ons. Te~ sh~ D~o~ect ~ ~ees, v~ses and shrubbery uDo~ the Re~ 5s~afe from
~n]u~y by Tenant's c~oDp~g oDe~afion or livestock.
~ursu~[ ~o rsquest ~ reasonable ~[mes: fe the e~euafe~ si N/A
~. ~ND[ORD'S STO~ SPAG~. ft th~s ~eace ~ s ~o~ sha~e [ease, [~sd~o~d ~ce~es N/A % of a~] odb snd
ENVIRONMENTAL.
a. Landlord, To the best of Landlord's knowledge to date:
i) 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 ale zoning and other land use matters.
ii) 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.
iii) No leak, spill release, discharge, emission, or disposal of toxic or hazardous substances has occurred on the premises.
iv) The -soil, §roundwater, and soil raper on or under the premises is free of toxic or hazardous substances except for
chemicals (including without m a on fertilizer, herbicides, insecticides) applied in conformance with good farming
methods, app[iceble rules and regulations and the label directions of each chemical.
Landlord shall hold Tenant harmless against liability for removing solid waste disposal sites existing at the execution of this Lease,
with the exception that Tenant shall be liable for removal of solid waste disposal sites to the extent that the Tenant created or contributed
solid waste disposal site at any time.
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.
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 property completed groundwater hazard statement to be
supplemented if changes occur.
-2-
FOR THE LEGAL I~1'~'=~, I OF THE USE OF
HE IOWA STATE aAR ASSOCIATION [ I TH!S FORM, CONSULT YOUR LAWYER
Official Form No. t35
b. Tenant. Tenant shaft comply with all applicable environmental laws concerning application, storage and handling of chemicals
{including, without limitation, herbicides and insecticides) and forfilizers. Tenant shall apply any chemicals used for weed or insect central
at levels not to exceed the manufacturer's recommendation for [he sell types involved. Farm chemicals (~,.=y) (may not} be stored on the
premises for more than one year. Farm chemicals for use on other properties (racy) (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 wi{I be disposed
of on the premises. Application of chemicals for agricultural purposes per manufacturer's recommendation shag not be construed to
constitute disposal.
Tenant shall employ all means appropriate to insure that well or ground water contamination does not occur, and shall tie
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 propedy post all fields
(when posting is required) whenever chemicals are applied by ground or air. Tenant shall haul and spread ali manure on appropriate fields
al 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 (,,%~.y) (may not) be tiuried on [he premises~ If disposal of solid waste or burial of dead animals is perm[fled as stated in the
previous two sentences, the dispesal or burial shall be in cempliance with all applicable environmental laws. Tenant shall not use waste oil
as a means to suppress dust on any roads on or near the premises. No underground storage tanks, except human waste septic systems
that meet current codes, rules, and regulations, shah be maintained on the premises.
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, except claims resulting from Landlerd's negtigence, in which case each party shall
be respons[bfo for that party's defense of any claim. After termination, Tenant shall remain tiable for violations which occurred during the
form of this Lease.
In the absence of selection of an alternative where choices are provided in this paragraph 8b, the choice of word "may"
shall be presumed unless that presumption is contrary to applicable environmental laws and regulations.
10. POSSESSION AND CONDITION AT END OF TERM. At the termination of this Lease, Tenant will relinquish possession of
the Real Estate [o the Landlord. If Tenant fails to do so Tenant agrees to pay Landlord $ ~ - - 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 [ess by fire, unavoidable accidents and ordinary wear, excepted.
11. 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 pr[or to the date of termination of the lease.
Landlord may enter upon the Real Estate at any reasonatile time for the purpose of viewing or seeding or making repairs, or for other
reasonable purposes.
12. 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.
13. 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 mafofia[s to the repair site without charge to Landlord.
14. 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 Rea[
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.
15. VVELL, WINDMILL, WATER AND SEPTIC SYSTEMS. Tenant shaft 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 shaft 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 the water for the premises.
16. EXPENSES INCURRED WITHOUT CONSENT OF LANDLORD. No expense shall be incurred for or on account of the
Landlord without first obtaining Landlord's written authorization. Tenant shall take no actions that might cause a mechanic's lien to be
imposed upon the Resl Estate.
17. NO AGENCY. Tenant is not an agent of the Landlord.
18. TELEVISION AND RADIO. Tenant may install and remove, without causing material injury to the premises, Tenant's
television reception antennas, microwave dishes, and radio reception and transmission antennas.
19. ACCOUNTING. The method used for dividing and accounting for the harvested grain shall be the customary and usual
method used in the Ioce]e.
20. ATTORNEY FEES AND COURT COSTS. If either party files suit to enforce any of the terms of this Lease, the prevailing
party sha]! be entitled to recover court costs a~d reasonable attorneys' foes
21. CHANGE IN LEASE TERMS. The conduct of either party, by act or omission, shall not tie construed as a material
alteration of this Lease until such provision is reduced to wrfiing and executed by both parties as addendum to this Lease.
22. CONSTRUCTION. Words and phrases herein, including the acknowledgement, are construed as in the singular or plural
and as [he appropriate gender, according to the context.
23. NOTICES. The notices contemplated in this Lease shall be made in wdting 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 9, which shall be governed by the Code of Iowa.
24. ASSIGNMENT. Tenant shall not assign this Lease or sublet the Real Estate or any portion thereof without prior written
authorization of Landlord.
Iowa State Bar Assoc[a~don 135 FARM LEASE - CASH OR CROP SHARES
IOWADOCSTM 1/99 - 3 - Revised January, 1999
25. ADDITIONAL PROVISIONS.
See At~achrnent A
DATED:
TENANT:
KENNETH G. BERGFELD
JANET M BERGFELD
STATE OF IOWA
COUNTY OF DUBUQUE
This instrument was acknowledged before me on
by
LANDLORD:CITY OF DUBUQUE, IOWA
By:
By:
STATE OF IOWA
COUNTY OF DUBUOUE
This instrument was acknowledged before me on
by
, Notary Public
as
of
If a corporation: Said person(s) acknowJedged that the corporation (has no seal) (has a seal which is affixed hereto).
[ATTACH OTHER APPROPRIATE ACKNOWLEDGEMENT(S) HERE]
-4.
, Notary Public
EXHIB~ "A"
White's Addition, Lots I through 9 and lg through 26 and 35 through 43 and 52 through
60, also known as the Northwest Quarter (NV/1/4) of the Southeast Quarter (SE 1/4), containing
40 acres, more or less; the Northeast Quarter (NE 1/4) of the Southeast Quarter (SE 1/4),
containing 40 acres, more or less; Lot One (1) of the Subdivision of the Southeast Quarter (SE
1/4) of the Southeast Quarter (SE 1/4), containing 33.50 acres, more or less; and Lot One (1) of
the subdivision of the Southwest Quarter (SW t/4) of the Southeast Quarter (SE 1/4), containing
37.50 acres, more or less, all in Section 30, Township 89 North, Range 2 East of the 5th P.M.,
Dubuque Township, Dubuque County, lowa, containing in all 151 acres, more or less, according
to the United Stated Government Survey thereof and the recorded plats thereof, together with all
improvements thereon and appurtenances thereunto belonging, also the fight of way over and
across a strip of land 30 feet wide, the center line of which strip is described as follows:
Beginning at a point in the Northwest side of the Delhi Road in the Northwest Quarter (NW 1/4)
of the Northwest Quarter (NW 1/4), in Section 32, Township 89 North, Range 2 East of the 5th
P.M., Dubuque County, Iowa, which is 525.3 feet distant from the intersection of the said
Northwest side of the Delhi Road with the line between Sections 31 and 32 Township and Range
aforesaid and being the Southerly end of the right of way hereby granted, thence North 46 ° 50'
West 98.2 feet to angle thence North 37 ° 35' West 305.1 feet to angle, thence North 55 o 25' West
279.2 feet to angle, thence North 14°lff East 210 feet to angle, from this point the comer to
Sections 29, 30, 31 and 32 Township and Range aforesaid bears North 35° West 49.75 feet,
thence Nocah 33 ° 40' West 315.4 feet to the South line of the Illinois Central Railroad right of
way, this being the Northerly end of the right of way hereby granted, subject to the right of others
to travel said right of way and the conditions regarding the fencing thereof, all as set out in
"Right of Way Deed" from Timothy M. McFadden and others to J. C. Smith, dated April 13,
1916, flied for record on September 21, 1916, at 2:00 p.m. in Book L21, Page 151 of the
Dubuque County, Iowa, records, as Instrument No. 22442, subject to easements to Eastern Iowa
Electric Company, as now of record, and subject to right-of-way deed to Hugh McFadden, dated
November 30, 1847, Book ZZ on Page 1 of the Dubuque County, Iowa, records, together with all
easements and servient estates appurtenant thereto.
a.)
c.)
d.)
e.)
ATTACHMENT A
Landlord shall pay all real estate taxes for the property leased.
Tenant shall secure, maintain, and pay for liability insurance for the premises acceptable
to Landlord and in accordance with the attached insurance schedule.
Tenant shall be responsible for any and all maintenance and repairs on the premises
including, without limitation, all roadways and fences. If Tenant fails to maintain any
fences necessary to confine livestock, Landlord may undertake such fence maintenance at
Tenant's expense which shall become additional rent.
In the event that any building or structure on the premises is destroyed or damaged,
Landlord has no duty to repair or rebuild such structure and shall be entitled to any
insurance proceeds resulting from such damage or destruction.
After the first year of the lease, Landlord may reduce the number of acres leased
hereunder by giving Tenant written notice, prior to March 1 of the applicable lease year,
of the number and location of the acres which are to be leased for the year. Landlord may
also reduce the number of acres leased by giving such written notice after March 1 of the
applicable year, but shall then be required to reimburse Tenant for any crop input
expenses incurred by Tenant on such removed acreage before the notice is given. No
other payment or reimbursement shall be required except that no rent shall be due for
such removed acreage. In agreeing to this provision, Tenant expressly waives the notice
provisions of Iowa Code Section 562.7.
TENANT LANDLORD