Property Acquisition - McFadden Properties, LLP for DIC Copyright 2014
City of Dubuque Action Items # 3.
ITEM TITLE: Property Acquisition - McFadden Properties, LLP
SUMMARY: City Manager recommending approval of the Offer to Buy Real Estate and
Acceptance on behalf of McFadden Properties LLP.
RESOLUTION Approving an Offer to Buy and Acceptance for the
acquisition of real estate owned by McFadden Properties, LLP in Dubuque
County, Iowa
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s)
ATTACHMENTS:
Description Type
❑ McFadden Properties LLP Property Acquisition-MVM Memo City Manager Memo
❑ Staff Memo Staff Memo
❑ Resolution Resolutions
❑ Offer to Buy and Acceptance Supporting Documentation
❑ McFadden Agreement to Terminate-McFadden Family Partnership Supporting Documentation
❑ Veach Agreement to Terminate-McFadden Family Partnership Supporting Documentation
❑ McFadden Agreement to Terminate-McFadden Properties Supporting Documentation
THE CITY OF Dubuque
U E I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Purchase of Property from McFadden Properties LLP
DATE: July 14, 2015
City Attorney Barry Lindahl is recommending approval of the Offer to Buy Real Estate
and Acceptance to purchase a 36.50 acre portion of the McFadden Properties LLP farm
at $37,000 per acre for a total of$1,350,500.
City Attorney Barry Lindahl, Economic Development Director Maurice Jones, City
Engineer Gus Psihoyos and City Project Manager Steve Brown have been working with
Greater Dubuque Development Corporation President & CEO Rick Dickinson to identify
a place for the City's next industrial park. In furtherance of that effort, the City has
already purchased the 166 acre Graf farm and the 125 acre McFadden Family
Partnership farm.
In 1995, the Mayor and City Council adopted the first Comprehensive Plan for the City
of Dubuque since the previously adopted 1936 Comprehensive Plan. This was the
culmination of five years of work by the newly formed Long Range Planning
Commission chaired by Dave Rusk. The process began in 1990 with the Vision 2000
document, adopted in 1993, and culminated in the adoption of the 1995 Comprehensive
Plan. Thousands of citizens participated in this process. The 1995 Comprehensive
Plan was updated in 2002, 2008, and 2012.
The Dubuque Comprehensive Plan includes the following:
"LAND USE & URBAN DESIGN GOALS
Goal Three: To provide sufficient opportunities for industrial development
sites within the community.
Objectives:
3.1 promote the retention and expansion of existing, and attraction of
new, industrial development opportunities in suitable locations, . . .
3.3 encourage annexation of land suitable for industrial usage if
necessary
ECONOMIC DEVELOPMENT GOALS
Goal One: To reduce unemployment, achieve economic stability, and
increase the standard of living for all citizens.
Objective
1 .2 promote diversification of the commercial/industrial base.
Goal Twelve: To promote the provision of an adequate supply of vacant,
development-ready land for commercial and industrial use.
Objectives
12.3 evaluate potential commercial and industrial development sites,
based on the city's future land use map
12.6 consider annexing growth areas, as necessary and as possible, to
ensure adequate supply of developable land and to control
development on the city's fringe."
Acquisition of additional industrial park land is consistent with the Mayor and City
Council 5-year goals, which includes Planned and Managed Growth, and Sustainability.
One of the three pillars of Sustainability is Economic Prosperity. Included in the twelve
principles of Sustainability are Support for Community Design and the Regional
Economy. Included by the City Council in the Management Agenda is industrial park
expansion, including acquisition and infrastructure.
The City of Dubuque has had tremendous success with economic development
receiving multiple national recognitions for job creation. This is in no small part to the
City's decision in the mid 1990's to acquire and develop over 900 acres of property to
provide a 20-year supply of industrial park land.
These 900 acres are now called Dubuque Technology Park, Dubuque Industrial Center
West, Dubuque Industrial Center North and Dubuque Industrial Center South. It should
not be forgotten that preceding the City's efforts was the development in the 1980's of
the Dubuque Industrial Center by Dubuque Initiatives (then called Dubuque Infuturo).
These industrial parks now are home to 49 businesses employing over 4,400 people.
These businesses have constructed 4 million square feet of buildings and invested well
over $200 million.
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None of this would have been possible without the City's partnerships with Dubuque
Initiatives, the Greater Dubuque Development Corporation, Dubuque County (who
donated the County Farm to this effort) and supports the use of Tax Increment
Financing to make these projects work, the Dubuque Community School District and
Northeast Iowa Community College, who have also supported the use of Tax Increment
Financing, the Greater Dubuque Development Corporation, federal and state funding,
the many property owners who have cooperated in selling their land, and, most
importantly, the local businesses that have expanded and the new businesses who
have chosen to make Dubuque their home.
In May, 2015, there were 60,400 people working in Dubuque County with a 3.2%
unemployment rate. This is 800 net new jobs over May, 2014. Compare this is the
lows of the 1980's, over 24% unemployment, 38,600 people working in Dubuque
County. With just 3% of Iowa's population, from 2009-2013, Dubuque County achieved
8.1 % of the state's job growth.
The average hourly wage in Dubuque County rose from $18.00 in 2007 to $23.38 in
2013, an increase of 30% that exceeded inflation by 17.5%.
Between 2000 and 2013, Dubuque's per capita income rose by 40%, exceeding the
national growth by 3.5%.
In 2000, Dubuque's Median Household Income (MHI) ($39,582) was 6% below the
national MHI ($41 ,994). In 2012, Dubuque's MHI ($50,885) was just 1 % below the
national MHI ($51 ,017).
Between 2008 and 2013, the average home price in Dubuque grew by 9.71 %, more
than Sioux City (8.83%), Waterloo (6.28%), Iowa City (5.32%), the Quad Cities (3.93%),
Cedar Rapids (1 .33%), Council Bluffs (1 .02%), Des MoinesM/est Des Moines (-0.50%),
Chicago (-18.56%), Daytona Beach (-24.08%) and the national average (-0.15%)
The City is greatly appreciative of the cooperation of the McFadden family in this
acquisition process.
The City will be acquiring 36.5 acres of land, adjacent to the existing industrial parks.
Once developed, this will provide approximately 32 acres of buildable land, depending
on access and grading plans.
The purchase price is $1 ,350,500 or $37,000 per acre. The estimated site development
costs are $1 .9 million. The total costs per developable acre when fully developed is
estimated at $101 ,578. This compares favorably with the asking price of$120,000 per
acre for current industrial park property and the McFadden Family Partnership
developable acre costs of$96,700 and the Graf farm developable acre costs of
$120,000.
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The City previously issued debt using Dubuque Industrial Center Urban Renewal
District Tax Increment Financing revenues to fund this purchase.
The City recently purchased the Graf Farm for $12,500 per acre. The total cost per
acre when fully developed is estimated at $120,000. The City also recently purchased
the McFadden Family Partnership property for $17,000 per acre. The total cost per
acre when fully developed is estimated at $96,700. The McFadden LLC property is
worth more money per acre because of the close proximity to the City's current
industrial park, having easy access to utilities and abuts Chavenelle Road. The fact that
88% of the property (32 of 36.5 acres is developable) provides a better yield on the
other recently purchased properties, with McFadden Family Partnership at 67% and the
Graf farm at 48%.
1 respectfully request Mayor and City Council approval of the purchase of the McFadden
Properties LLP property.
Mic ael C. Van Milligen'
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
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THE CU-W&E
F
DB MEMORANDUM
Masterpiece on the Mississippi
BARRY LIND
CITY ATTORN
To: Mic ael C. Van Milligen
City anager
DATE: July 14, 2015
RE: Purchase of Property From McFadden Properties LLP
Attached is a copy of an Offer to Buy Real Estate and Acceptance on behalf of
McFadden Properties LLP, signed by Gary McFadden.
The Agreement is for the purchase of 36.50 acres at $37,000.00 per acre for a total of
$1,350,500.00. The Offer is subject to final approval of the City Council.
Also attached are three (3) Agreements to Terminate Tenancy of Farm Lease. Two of
the agreements are between the City of Dubuque and John McFadden, and one of the
agreements is between the City of Dubuque and John Veach. These agreements are
related to both the McFadden Family Partnership, LLC and McFadden Properties, LLP
property acquisitions.
I recommend that the Offer to Buy Real Estate and Acceptance be submitted to the City
Council for consideration and approval. I further recommend the City Council approve
the Agreements to Terminate Tenancy of Farm Lease.
BAL:tIs
Attachment
cc: Gus Psihoyos, City Engineer
Todd Irwin, Engineering Technician
F:\USERS\tsteckle\Lindanl\McFadden Properties-Industrial Park Property Acquisitions\MVM_ExecutedOfferToBuy_071415.doc
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563)583-4113/FAx (563)583-1040/EMAIL balesq@cityofdubuque.org
RESOLUTION NO. 258-15
APPROVING AN OFFER TO BUY AND ACCEPTANCE FOR THE ACQUISITION OF
REAL ESTATE OWNED BY MCFADDEN PROPERTIES LLP IN DUBUQUE
COUNTY, IOWA
Whereas, McFadden Properties LLP is the owner of the following real property
(the Property):
ALL THAT PART OF THE NW 1/4 OF THE SW 1/4 OF SECTION 29,
T89N, R2E OF THE 5TH P.M. LYING NORTH OF THE NORTHERLY
RIGHT OF WAY LINE OF CHAVENELLE RD. AS SHOWN ON
ACQUISITION PLAT RECORDED AS INSTRUMENT NO. 1965-02 IN
THE DUBUQUE COUNTY RECORDER'S OFFICE
; and
Whereas, the City Manager has tentatively agreed to purchase the Property from
McFadden Properties LLP, subject to the approval of an Offer to Buy Real Estate and
Acceptance between the City of Dubuque and McFadden Properties LLP, by the City
Council; and
Whereas, the City Council has determined that it would be in the best interests of
the City to approve the purchase of the Property from McFadden Properties LLP.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The City Council hereby approves the Offer to Buy and Acceptance
attached hereto.
Section 2. The City Manager and City Attorney are authorized to take such
further action as is required to complete the purchase of the Property.
Passed, approved and adopted this 20th day of ,duly, 2015.
Roy D. BuoJrayor
Attest:
Kev S. Firnstah(, City J
i erk
F:\USERS\tsteckle\Lindahl\McFadden Properties - Industrial Park Property Acquisitions\ResolutionApprovingOfferToBuy_071315.doc
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Prepared by: Barry A. Lindahl, 300 Main Street, Suite 330, Dubuque, Iowa 52001-4113
Return to: Barry A Lindahl, 300 Main Street, Suite 330, Dubuque, Iowa 52001-4113
OFFER TO BUY REAL ESTATE AND ACCEPTANCE
TO: McFadden Properties LLP, Seller:
SECTION 1. REAL ESTATE DESCRIPTION. The City of Dubuque, Iowa (Buyer)
offers to buy real estate in Dubuque County, Iowa, described as follows:
ALL THAT PART OF THE NW 1/4 OF THE SW 1/4 OF SECTION 29,
T89N, R2E OF THE 5TH P.M. LYING NORTH OF THE NORTHERLY
RIGHT OF WAY LINE OF CHAVENELLE RD. AS SHOWN ON
ACQUISITION PLAT RECORDED AS INSTRUMENT NO. 1965-02 IN
THE DUBUQUE COUNTY RECORDER'S OFFICE
As shown on Exhibit A attached hereto
(the Real Estate) together with any easements and appurtenant servient estates, but
subject to the following: a. any zoning and other ordinances; b. any covenants of
record; c. any easements of record for public utilities, roads and highways designated
the Real Estate, as acceptable to Buyer in its sole discretion.
SECTION 2. PURCHASE PRICE.
Approximately 36.50 acres at $37,000.00 per acre, $20,000.00 earnest money and the
balance to be paid as follows:
TOTAL: $1,330,500.00 cash at closing.
Actual acreage and total purchase price to be determined by survey prior to closing at
Buyer's cost.
SECTION 3. REAL ESTATE TAXES. Taxes for the fiscal year in which the closing
takes place shall be paid by Seller prorated to the date of possession. Seller shall also
pay any unpaid real estate taxes for prior fiscal years.
SECTION 4. POSSESSION. If Buyer and Seller timely perform all obligations,
possession of the Real Estate shall be delivered to Buyer on September 14, 2015, or
the day following final approval by the City of Dubuque City Council of an amendment to
070915bal
the Dubuque Industrial Center West Urban Renewal District adding the Real Estate to
the District, whichever first occurs, or on such other date as the parties agree in writing,
with any adjustments of rent, insurance, and interest to be made as of the date of
transfer of possession.
SECTION 5. ABSTRACT AND TITLE. Seller, at Buyer's expense, shall promptly
obtain an abstract of title to the Real Estate continued through the date of acceptance of
this offer, and deliver it to Buyer for examination. It shall show merchantable title in
Seller in conformity with this agreement, Iowa law and Title Standards of the Iowa State
Bar Association. The abstract shall become the property of the Buyer when the
purchase price is paid in full. Buyer shall pay the costs of any additional necessary
abstracting and title work.
SECTION 6. DEED. Upon payment of the purchase price, Seller shall convey the
Real Estate to Buyer by Warranty Deed, free and clear of all liens, restrictions, and
encumbrances, except as stated in Section 1.
SECTION 7. TIME IS OF THE ESSENCE. Time is of the essence in this contract.
SECTION 8. REMEDIES OF THE PARTIES. Buyer and Seller also are entitled to
utilize any and all other remedies or actions at law or in equity available to them and
shall be entitled to obtain judgment for costs and attorney fees as permitted by law.
SECTION 9. If the sale of the Real Estate is subject to Court approval, the fiduciary
shall promptly submit this contract for such approval. If this contract is not so approved,
it shall be void.
SECTION 10. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This
contract shall apply to and bind the successors in interest of the parties.
SECTION 11. CONSTRUCTION. Words and phrases shall be construed as in the
singular or plural number, and as masculine, feminine or neuter gender, according to
the context.
SECTION 12. TIME FOR ACCEPTANCE. If this offer is not accepted by Seller on or
before July 10, 2015, it shall become void and all payments shall be repaid to the Buyer.
SECTION 13. OTHER PROVISIONS.
13.1 The Offer is subject to final approval of the City Council of the City of Dubuque,
Iowa in its sole discretion.
13.2 Buyer, its counsel, accountants, agents and others authorized by Buyer, shall
have full and continuing access to the Real Estate and all parts thereof, upon
reasonable notice to Seller for the purpose of inspecting, surveying, engineering, test
boring, performance of environmental tests and such other work as Buyer shall consider
2
appropriate, provided that Buyer shall hold Seller harmless and fully indemnify Seller
against any damage, claim, liability or cause of action arising from or caused by the
actions of Buyer, its agents, or representatives upon the Real Estate (except for any
damage, claim, liability or cause of action arising from conditions existing prior to any
such entry upon the Real Estate), and shall have the further right to make such inquiries
of governmental agencies and utility companies, etc. and to make such feasibility
studies and analyses as Buyer considers appropriate.
13.3 Buyer shall assume the lease on the Real Estate as scheduled on Exhibit B
attached hereto and by this reference made a part hereof (the "Lease"). Buyer may
negotiate a termination of the Lease, to be effective only if this sale and purchase
between Buyer and Seller is closed, at Buyer's sole expense. Buyer shall indemnify and
hold harmless Seller from any and all liability related to or arising out of the Lease if the
sale and purchase closes. If Buyer is unable to negotiate a termination of any or all of the
Lease, to its reasonable satisfaction, prior to the closing, then Buyer, upon written notice
to Seller, may terminate this purchase agreement upon 10 days written notice prior to the
closing and have all of its earnest money returned to it. If Buyer does not negotiate a
termination of any or all of the Lease, and does not give notice of termination of this
purchase agreement, such non-terminated Lease, if any, is the sole responsibility of
Buyer as of and after the closing.
13.4 Environmental Provision.
(1) Seller warrants to the best of its knowledge and belief that there are no
abandoned wells, solid waste disposal sites, hazardous wastes or substances,
underground storage tanks, burial sites or private wastewater disposal systems
located on the Real Estate, the Real Estate does not contain radon gas,
asbestos or asbestos containing building materials, or urea-formaldehyde foam
insulation, and Seller has done nothing to cause or allow contamination of the
Real Estate with hazardous wastes, substances, or pollutants. Seller warrants to
the best of its knowledge and belief that the Real Estate is not subject to any
local, state, or federal judicial or administrative action, investigation or order
regarding any environmental matter. Seller shall provide Buyer with a properly
executed Groundwater Hazard Statement showing no wells, solid waste disposal
sites, hazardous wastes, underground storage tanks, private burial sites or
private wastewater disposal systems on the Real Estate which shall be
considered a warranty and representation by Seller to Buyer.
(2) City may inspect the Real Estate as provided in Section 13.2 hereof prior
to the Closing. Notwithstanding the foregoing, should the City determine to close
the purchase of the Real Estate from the Seller, the Seller makes no
representation or warranty of any kind concerning the condition of the Real
Estate or otherwise, except as to marketable title, the Real Estate shall be
delivered to the City in AS IS condition as of and after the Closing. Seller shall
have no indemnity obligations to the City after the Closing whatsoever, except as
to its marketable title to the Real Estate.
3
13.5 Until ten (10) days prior to closing, Buyer shall have the right to terminate this
agreement if it determines that the Real Estate does not satisfy the City's intended use
or environmental issues exist on the Real Estate that Buyer determines in its sole
discretion do not permit Buyer to use the Real Estate for its intended use. Prior to
terminating this Agreement pursuant to this section, Buyer shall offer Seller the
opportunity to remediate the Real Estate to the satisfaction of Buyer in its sole discretion
and at Seller's sole cost.
13.6 Seller agrees to cooperate with Buyer amending the Dubuque Industrial Center
West Urban Renewal District by adding the Real Estate thereto. In the event the Real
Estate is added to the Dubuque Industrial Center West Urban Renewal District but the
purchase of the Real Estate does not close by September 30, Buyer will repeal the
amendment to the Dubuque Industrial Center West Urban Renewal District which added
the Real Estate to the Dubuque Industrial Center West Urban Renewal District at the
City Council meeting immediately following such date.
CITY OF DUBUQUE, IOWA
Dated: 7���r
By
Michael C. Van Milligen
City Manager
4
THIS OFFER IS ACCEPTED
MCFADDEN PROPERTIES, LLP
Dated: � /ic/'5"
By
EXHIBIT A
THE REAL ESTATE
See attached Acquisition Plat (two (2) lots to South marked in red are excluded).
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LEGAL DESCRIPTiON, NW 114 -SW IA Sec_ 29. Mk R2E 5i PM
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EXHIBIT B
SCHEDULE OF LEASE TO BE ASSIGNED TO BUYER AT CLOSING
1. Farm Lease-Cash:
Seller is the landlord and John McFadden is the tenant; dated January 18, 2015
8
AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
JOHN MCFADDEN
TO TERMINATE TENANCY OF FARM LEASE
This Agreement, dated for reference purposes the �day of �JLSI ,
2015, is made and entered into by and between the City of Dubuque, Iowa (City), and
John McFadden (McFadden).
Whereas, McFadden entered into a Farm Lease with McFadden Family
Partnership, LLC (McFadden Family) for certain real estate (the Real Estate) described
therein, a copy of which Farm Lease is attached hereto as Exhibit A; and
Whereas, the term of the Farm Lease is from March 1, 2015 to February 28, 2016;
and
Whereas, City and McFadden Family have entered into a Purchase Agreement
which includes the Real Estate; and
Whereas, pursuant to the Purchase Agreement, City has assumed the Farm
Lease; and
Whereas, City and McFadden have agreed to terminate the tenancy of the Farm
Lease on the terms and conditions set forth herein.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS
FOLLOWS:
SECTION 1. Subject to Section 2, City agrees to extend the tenancy of the Farm Lease
for an additional term from March 1, 2016 to February 28, 2017, on the same terms and
conditions as the current Farm Lease, and McFadden agrees that the tenancy of the Farm
Lease will terminate on February 28, 2017 without further notice from City to McFadden.
SECTION 2. City may terminate the tenancy of the Farm Lease at any time in City's
sole discretion upon ten (10) days written notice delivered to McFadden and McFadden
agrees that after such ten (10) day period, McFadden will surrender the tenancy and all
of McFadden's right, title and interest in and to the Farm Lease and the Real Estate will
automatically vest in City.
SECTION 3. Upon termination of the tenancy of the Farm Lease, or if damages occur
to the leased premises (including but not limited to all row or other crops, or the ground
subject to the leased premises or any improvements thereon) because of the City's due
diligence in connection with the Purchase Agreement, as consideration in either or both
070915bal
of those events, City agrees to pay McFadden $1,000 per acre, or any part thereof, for(i)
any crop that cannot be harvested by McFadden or (ii) or for damages caused by such
due diligence by or on behalf of the City. For example, if the due diligence by or on behalf
of the City damages 1.5 acres of the leased premises, the City shall pay to McFadden
per the foregoing $2,000. In the event that there is no crop on the leased premises at the
time the Farm Lease is terminated, the City shall pay to McFadden $200 per acre (i.e. 37
acres @ $200/acre equals $7,400 since 37 acres are leased) to McFadden in full
satisfaction of such termination
SECTION 4. City, its counsel, accountants, agents and others authorized by City, are
granted full and continuing access to the Real Estate and all parts thereof, upon
reasonable notice to McFadden for the purpose of inspecting, surveying, engineering,
test boring, performance of environmental tests and such other work as City considers
appropriate.
SECTION 5. McFadden agrees to indemnify and hold City harmless from any and all
claims of any kind related to the Farm Lease or the Real Estate arising out of or related
to the Farm Lease accruing prior to the surrender of the tenancy as provided in Section
2.
CITY OF DUBUQUE, IOWA JOHN MCFADDEN
By: By: '4X, ��
Michael C. Van Milligen ohn McFadden
City Manager
2
EXHBIT A
FARM LEASE
3
Farmers1 ers Farm and Ranch Management * Real Estate Sales * Insurance
Na10al Oil&Gas Management * Agricultural Consultation * Agricultural Appraisals
aCommodity Marketing *Conservation &Recreation Services
�Company
FARM LEASE AND SECURITY AGREEMENT
CASHRENT
Parties: This Farm Lease and Security Agreement(the "Lease") is entered into by and between Farmers
National Company, ("AGENT"),hereinafter acting as the Farm Manager for OWNER of the real estate or
its authorized representative, ("OWNER"), MCFADDEN FAMILY PARTNERSHIP LLP, (collectively
referred to herein as the "MANAGER"), and JOHN V. MCFADDEN. 14081 OLD HWY RD..
DUBUQUE. IA. 52002 hereinafter referred to as OPERATOR.
Property: MANAGER Leases to OPERATOR the following described real Property (the "Property"):
37.11 ACRES OF CROPLAND LOCATED N THE SOUTH WEST CORNER OF NWI/4 EX BLDG
SITE IN NW CORNER OF 1.0 A. +/- & BLDG ALONG N SIDE OF 1.5 A.+/- SEC 29 TWP 89N
RGE 2E, Dubuque . County, State of Iowa, containing approximately 37.11 acres, excepting there from
all rights to hunt, fish, trap or otherwise take or harvest fish and game upon the Property, all of which
rights (including the right to Lease) are reserved to MANAGER, its successors and assigns.
Term: The term of this Lease shall begin on 03/01/2015, and shall end on 02/29/2016 without notice of
any type being required of MANAGER, unless expressly required by applicable state law. Provided,
however, that MANAGER may terminate this Lease at any time upon OPERATOR's failure to timely
pay the full amount of any rent due hereunder.
Rent: OPERATOR shall pay rent to MANAGER, as follows:
37.11 TILLABLE ACRES X$225 PER ACRE=$8.350.
FINAL RENT FIGURE WILL BE ADJUSTED BASED ON ACTUAL TILLABLE ACRES
CERTIFIED AT FARM SERVICE AGENCY OFFICE.
IF RENTER NEEDS TO SEED DOWN ACRES TO HAY TO MEET CONSERVATION PLAN
REQUIREMENTS. OWNERS WILL CHARGE$175 PER ACRE ON ACRES SEEDED TO HAY
RENTER WILL NEED TO PROVIDE COPIES OF FARM SERVICE AGENCY CROP
CERTIFICATION PAPERWORK IN ORDER TO RECEIVE THIS CREDIT.
CASH RENT IS DUE AS FOLLOWS:
03/01/2015 $8,350.00
Provided,however, if all of the rent due hereunder is paid in full on or before 03/01/2015, or if the
OPERATOR has provided the MANAGER with a satisfactory and enforceable Letter of Credit securing
any remaining rent due hereunder,the provisions of Operating Covenants 7 through 11, below, shall not
apply.
All crops will be planted, and all cropping practices conducted in accordance with a written crop plan
between MANAGER and OPERATOR("Crop Plan")which shall be made a part of this Lease.
Expenses: Except as otherwise specified herein, all expenses incident to the operation of the Property
during the term of this Lease shall be paid by OPERATOR.
FARM#20039-1 MCFADDEN FAMILY PTNSP LLP
Rev. 09-2-1011 Pate 1
ALL SEED AGRICULTURAL LIMESTONE. FERTILIZER. HERBICIDE.INSECTICIDE.AND ALL
OTHER CROP PRODUCTION EXPENSES ARE 100%OPERATOR EXPENSES.
OPERATOR'S INVESTMENT IN LIME WILL BE PRORATED OVER A 4-YEAR TIME FRAME.
OPERATOR WILL NEED TO PROVIDE PROOF IN FORM OF APPLICATION TICKETS AS WELL
AS BILLS IN ORDER TO RECEIVE REIMBURSEMENT.
Farm Programs: All decisions concerning participation of the Property in any Local, State, or Federal
agricultural, conservation or similar programs shall be at the discretion of MANAGER in accordance with
the Crop Plan. Any division of payments shall be in conformity with applicable governmental laws and
regulations.
It is mutually understood and agreed that if OPERATOR a) receives any advance government program
payments for the farm year covered by this Lease or any subsequent year, and b) fails or refuses to
comply with the terms and conditions of this Lease, and c) is terminated by MANAGER as OPERATOR
under this Lease for any reason, then OPERATOR agrees to immediately return the advanced government
program payments. As determined by the Farm Service Agency,the payments shall either be returned to
the FSA, or paid to the new tenant to whom the Property is Leased for the applicable farm year. j
OPERATOR SHALL RECEIVE ALL 2015 FEED GRAIN PROGRAM PAYMENTS.
I
SOIL CONSERVATION PROJECTS SHALL BE AT THE OPTION OF THE MANAGER.
MANAGER IS ENTITLED TO RECEIVE ALL ELIGIBLE GOVERNMENT COST SHARE
PAYMENTS.
A�6ricultural Chemicals: OPERATOR agrees that the amounts of fertilizer, lime, and other agricultural
chemicals to be applied will be in accordance with the Crop Plan agreed to with MANAGER.
OPERATOR AGREES TO APPLY LIME IN SUFFICIENT AMOUNT TO MAINTAIN A M QMUM
pH LEVEL OF 6.4 AT THE CONCLUSION OF THE GROWING SEASON. OPERATOR TO
COMPLETE SOIL TESTING AT THE DIRECTION OF THE MANAGER WITH THE INTERVALS
NOT TO EXCEED THREE YEARS BETWEEN TESTS AND TO FURNISH COPIES TO THE FARM
MANAGER UPON REQUEST. THIS SHALL APPLY UNLESS OTHERWISE STATED IN THE AG
CHEMICALS SECTION.
Operating Covenants: The following paragraphs may be deleted,under appropriate circumstances:
OPERATING COVENANTS.
1. Rent: Cash rent shall be paid on the dates set forth herein, without further notice from MANAGER
to OPERATOR. Cash rent not paid when due shall bear interest until paid, at the rate of 18% per annum,
or the highest rate allowed by the laws of the state where the Property is located, whichever is less.
OPERATOR agrees to pay a service charge of$25 for any returned or insufficient funds check.
2. Assignment - Subleasing: OPERATOR agrees not to assign this Lease to any other person, nor
sublease all or any part of the Property without the prior written permission of MANAGER. For the
purpose of this section, an assignment of this Lease shall be deemed to have taken place when all or
substantially all of the agricultural operations are performed by hired labor or by one or more third parties
hired by OPERATOR to perform agricultural operations on a custom basis.
3. Right to Enter: MANAGER, its agents, assigns, lessees, or contractors shall have the right to go
upon the Property at any time to inspect the same or to make repairs or improvements thereon, or for any
FARM#20039-1 MCFADDEN FAMILY PTNSP LLP
Rev. 09-2014 Page 2
other purposes incidental to the management of the Property. MANAGER, its lessees, agents, assigns or
contractors shall also have the right to go upon the land to fall till, or develop the land for irrigation, to
install conservation structures, to seed or sow any grain or grass thereon or to hunt, fish, trap or otherwise
take or harvest fish and game from the Property.
4. Litigation: In the event of default by OPERATOR resulting in MANAGER employing an attorney
for the purpose of enforcing any provision of this Lease or regaining possession of the Property,
OPERATOR agrees to pay MANAGER's reasonable attorney's fees and expenses on demand.
Delinquent payments shall draw interest at the default rate referred to in Operating Covenant 1.
5. Default: All covenants and agreements contained in this Lease are declared to be conditions of the
Lease for the term demised to OPERATOR Should OPERATOR default in the performance of any
covenant, condition or agreement contained herein, MANAGER may terminate the Lease as provided
herein, and/or bring an action for damages, performance, or other suitable remedy in a court of competent
jurisdiction. Any waiver or failure by MANAGER to strictly enforce any provision of this agreement
shall not be deemed to restrict or limit MANAGER's ability to strictly enforce said provision at any time
thereafter.
6. Failure to Perform / Rig_ht of Entry: OPERATOR agrees that if he or she fails to diligently
perform any agricultural activity provided for hereunder for the proper operation and management of the
Property at the proper time, or in the proper manner, or if he or she fails to follow Crop Plan or assigns
this Lease or subleases the Property in whole or in part, MANAGER may, after giving OPERATOR 72
hours written notice, personally delivered to OPERATOR, or sent to OPERATOR's last known address
by U. S. Mail, postage pre-paid, either (a) declare this Lease to be terminated and take immediate
possession of the Property, and/or (b) enter upon the Property in person or by agent or contractor and
perform the necessary agricultural activities which OPERATOR should have done, and MANAGER shall
add all expenses incurred therewith to the rent to be paid hereunder, the same to be immediately due and
bear interest until paid at the rate set forth under Operating Covenant 1.
7. Financial Statement: OPERATOR agrees to furnish MANAGER a statement showing
OPERATOR's current financial position upon request of MANAGER.
8. Insolvencv of OPERATOR: The insolvency of OPERATOR, a receiver being appointed to take
possession of all or substantially all of the Property of OPERATOR, the filing of a voluntary or
involuntary bankruptcy proceeding or the making of a general assignment for the benefit of creditors by
OPERATOR shall, to the extent allowed by law, entitle MANAGER to terminate the Lease and
immediately re-enter and regain possession and operation of the Property.
9. Sale and Removal of Crops: OPERATOR agrees and acknowledges that, until the scheduled cash
rent payments due hereunder have been paid and are not delinquent, and all of the grain has been
delivered, MANAGER shall have Property rights in the crops produced on the Property, and therefore
covenants and agrees not to sell or remove any of the crops raised on the Property during the term of this
Lease until the rent due hereunder has been fully paid or MANAGER has given OPERATOR written
consent to such sale or removal.
10. Securitv Interest: As security for the rents and other payments and obligations due hereunder,
OPERATOR hereby grants MANAGER a security interest in all crops growing or to be grown, on the
Property, on all harvested crops now owned or hereafter acquired by OPERATOR, wherever stored,
grown, or produced, on the Property, on all livestock kept or pastured on the Property, and on all proceeds
of such crops and livestock. The security interest granted herein shall extend to and cover all warehouse
receipts issued by any warehouse as evidence of the delivery and storage of crops. It shall also extend to
general intangibles, accounts, and rents, issues and profits, and farm program payments or entitlements of
every type. The security interest shall also extend to any proceeds recovered under insurance policies
covering the crops. OPERATOR agrees to execute any and all documents required to grant this security
FARM#20039-1 MCFADDEN FAMILY PTNSP LLP
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l
interest and perfect an enforceable lien for the benefit of MANAGER. OPERATOR shall furnish
MANAGER a list of buyers, commission merchants, and selling agents to or through whom OPERATOR
may sell crops growing or to be grown on the Property, in accordance with the Food Security Act of 1985.
11. Warrantv of OPERATOR: OPERATOR expressly warrants and guarantees to MANAGER that
any security interest granted to MANAGER is a first security interest, prior and paramount to any and all
other security interests pertaining to the Property covered thereby, including, but not limited to those that
may have been granted to a lender, machinery or equipment provider, or crop input provider.
OPERATOR further agrees that if this warranty and guaranty is breached, OPERATOR will promptly
obtain such releases, waivers or subordinations from other secured parties as may be required to provide
MANAGER with a first security interest, and upon failure to do so, MANAGER may, in addition to any
other remedy it may have hereunder, immediately terminate this Lease and enter into full possession of
the Property.
12. OPERATOR'S Contribution, Accounting: OPERATOR agrees: (a) to follow the agricultural
practices that are currently recommended for, and that are best adapted to this type of Property and crops,
and this locality, unless other practices are.expressly agreed upon with MANAGER; (b) to furnish all
labor and equipment necessary to operate the Property; (c) to promptly complete a"harvest results" card,
and return it to MANAGER within 48 hours following delivery of MANAGER'S harvested grain, if any;
and (d) to reimburse MANAGER for any loss experienced by MANAGER as a result of OPERATOR's
failure to provide the harvest results to MANAGER as required under (c), above. Despite any provision
herein to the contrary, OPERATOR shall provide, at its own cost and expense, complete and accurate
yield documentation to MANAGER within two (2) weeks following harvest of each crop gown on the
Property. Yield documentation under this Paragraph shall be in the form of scale tickets, yield monitor
data, or actual grain bin measurements.
13. Care of Property: OPERATOR agrees that he will: a) cultivate and otherwise operate the Property
in a professional workmanlike manner, and in accordance with the Crop Plan and generally recognized
and approved agricultural practices; b) when so directed, farm on the contour, or use minimum tillage or
no tillage agricultural practices; c) operate the Property in conformity with appropriate soil and water
conservation practices, and in such a way as to maintain and if possible enhance soil productivity; d)
operate the Property in conformity with all required or applicable conservation plans or programs,
including but not limited to those subject to the jurisdiction of USDA and EPA and their related agencies;
and e)keep the Property clean and free of trash,rubbish,refuse, dead animals and waste.
14. Environmental Compliance: (a) OPERATOR warrants that he is knowledgeable of the Federal,
State and Local laws and regulations pertaining to the operation of the Property with regard to matters of
environmental compliance, and the protection and preservation of soil, water and other natural resources;
(b) OPERATOR warrants that he will operate the Property in full compliance with all such laws, and will
notify MANAGER immediately of any accidents, problems, conditions or occurrences on the Property
which may threaten compliance with such laws or regulations, or which may result in liability or damage
being imposed upon the AGENT or OWNER; (c) OPERATOR warrants that all fertilizers, agricultural
chemicals, petroleum products and hazardous or toxic wastes or substances in, on, or affecting the
Property will be handled, used, stored, contained, transported, applied, removed and/or disposed of in
accordance with all applicable laws, regulations, manufacturer's directions and labeling•, (d)
OPERATOR acknowledges that he is knowledgeable of the Worker Protection Standard adopted by EPA,
and warrants that he will see that the requirements of the Standard are adhered to in regard to the use and
application of agricultural chemicals on the Property; and (e) OPERATOR agrees to complete any
Environmental Questionnaires or other requests for environmental information solicited by MANAGER.
15. Machinery and Equipment: OPERATOR shall be responsible for providing the machinery and
equipment necessary for planting, cultivating and harvesting the crops, and for any other agricultural
operations incidental to operating the Property covered by this Lease. All costs of purchasing, renting,
FARM#20039-1 MCFADDEN FAMILY PTNSP LLP
Rev. 09-2014 Paye 4
leasing, and operating the machinery and equipment, including the cost of custom operations, shall be
paid by OPERATOR,except as otherwise specified herein.
16. Weed Control: OPERATOR agrees to keep the cultivated areas clean and free from weeds and
further agrees to cut or spray weeds, trees and shrubs growing in the fence rows and non-crop areas, as are
necessary to keep these areas neat and presentable. All costs involved in controlling weeds shall be paid
by OPERATOR except as otherwise specified herein. OPERATOR agrees to mow the roadsides as often
as necessary to present a neat appearance or as directed by MANAGER.
17. Insect and Disease Control: OPERATOR agrees to carry out all approved practices for the control
and eradication of corn borer, rootwonn, and other crop insects,pests and diseases, as may be necessary,
at his own cost,unless otherwise specified herein, or in writing by MANAGER.
18. Fertilizers, Lime and Manure: OPERATOR agrees to haul out and distribute, as agreed with
MANAGER, any manure and/or compost suitable to be used, and to apply at the proper time and in the
proper manner all fertilizers and agricultural lime. Further, OPERATOR will, upon request, provide
MANAGER with receipts, sale tickets, application records, and other documentation showing the use or
application of all agricultural chemicals to which state, federal or local record keeping requirements
apply. OPERATOR shall be responsible for all costs of purchasing, transporting, and applying manure,
fertilizers, and agricultural lime, except as otherwise agreed herein or in writing by MANAGER.
19. Crop Handling: If applicable, OPERATOR shall be responsible for the costs of handling crops
raised on the Property, unless otherwise agreed herein or in writing by MANAGER. For purposes of this
paragraph, "handling" shall include, but shall not be limited to placing crops in storage facilities located
on the Property, hauling to a grain elevator or other facility selected by MANAGER, and such other
handling services as required from time to time by MANAGER-
20.
ANAGER20. Straw and Stalks: OPERATOR agrees not to burn any stacks, straw, stalks, or stubble, or to
remove any straw or stalks from the Property, unless otherwise expressly agreed herein, or in writing by
MANAGER-
21.
ANAGER21. Improvements: OPERATOR agrees to perform ordinary maintenance tasks and will otherwise
properly maintain all buildings,tile lines,fences, irrigation equipment,water systems and other
improvements on the Property, and shall yield them up to MANAGER at the end of the Lease term in as
good order and condition as at the beginning thereof, normal wear and tear excepted. OPERATOR j
further agrees to provide labor and to haul such materials as may be necessary for said maintenance, and
to provide the labor and materials necessary to make minor repairs to said improvements that are or may
be due as a result of ordinary wear and tear. OPERATOR shall be solely responsible for the cost of
making repairs to improvements which have been damaged or destroyed because of OPERATOR's
failure to maintain, or otherwise because of OPERATOR's neglect, abuse,negligence,or lack of
attention. It is mutually understood and agreed that MANAGER shall not be obligated to replace any
improvements lost or destroyed,regardless of whether or not such loss was covered by insurance.
22. Fences: OPERATOR will maintain and remove fences located on the Property at the request of
MANAGER without charge for labor. In the event new fence is required, compensation shall be as
provided for elsewhere herein.
23. Improvements Made by OPERATOR: It is mutually understood and agreed between the parties
hereto that all buildings, fences and improvements of every kind and nature that may be erected upon the
above described Property during the term of this Lease by OPERATOR shall be deemed as additional rent j
and shall inure to the Property and become the Property of MANAGER unless permission to erect and j
remove the same shall be obtained beforehand, in writing,and made a part of this Lease.
24. Insurance: OPERATOR shall carry the following types and minimum coverage ofinsurance: (a)
Worker's Compensation Insurance if required under the laws of the state where the Property is located;
FARM#20039-1 MCFADDEN FAMILY PTNSP LLP
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(b) Comprehensive General Liability Insurance, including Employer's Liability,with respect to
OPERATOR's use and occupancy of the Property and all operations incidental thereto, with limits of not
less than$1,000,000 per occurrence. Operator may at the option of MANAGER be required to name
OWNER and the AGENT as additional insureds. This insurance shall also provide contractual liability
insurance covering the obligations assumed by OPERATOR under the indemnity provisions under
Operating Covenant 25(a) only; (c)Automobile Liability Insurance on all owned,non-owned,hired or
Leased automotive equipment in conjunction with operations,in amounts not less than$500,000 per
occurrence; and(d)If required by MANAGER, crop or crop/revenue insurance coverage. If crop or
crop/revenue insurance is required, it will be set forth in Operating Covenant 40,below. OPERATOR
hereby certifies that all applicable insurance coverages are currently in effect and will remain in effect and
unchanged throughout the term of this Lease and will provide a certificate of insurance to OWNER upon
request.
25. Indemnification: OPERATOR agrees to indemnify and hold OWNER and the MANAGER
harmless from any and all claims, liability, loss, damage or expenses resulting from OPERATOR's
occupation and use of the Property, specifically including without limitation any claim, liability, loss or
damage arising: (a) by reason of the injury to personorProperty from whatever cause (other than
negligence or misconduct by MANAGER) while in, on or near the Property or in any way connected with
the Property or with the improvements or personal Property in or on the Property, including any liability
for injury to the person or personal Property of OPERATOR its agents or employees; (b) By reason of
any work performed on the Property or materials furnished on the Property at the instance of or request of
OPERATOR, its agents or employees, other than negligence or misconduct by MANAGER, its agents or
employees; (c) By reason of OPERATOR's failure to perform any provision of this Lease or to comply
with any requirement imposed upon it or on the Property by any duly authorized governmental agency or
political subdivision; provided that OPERATOR shall not be responsible to comply with any
requirements necessitating structural or permanent improvements or changes to the Property; (d) Because
of OPERATOR's failure or inability to pay as they become due any obligation incurred by it in the
agricultural or other operations conducted by it on the Property. MANAGER will indemnify
OPERATOR for losses to OPERATOR's livestock and equipment resulting from MANAGER's Lease of
hunting rights on the Property to third parties. The provisions of the foregoing indemnification agreement
shall remain in effect following the termination of this Lease.
26. Independent Contractors: If OPERATOR employs independent contractors to perform any work
on the Property, or to conduct its farming operation, OPERATOR shall supervise the work performed by
such contractors and assure MANAGER that each contractor maintains in full force and effect, at
contractor's sole cost and expense, the kinds and amounts of insurance specified in Operating Covenant
24 herein, and any other insurance MANAGER deems reasonably necessary or desirable, under the
circumstances.
27. Expiration of Term; Termination: Upon expiration of the term of this Lease, or upon termination
of the Lease prior to expiration of the term, OPERATOR covenants and agrees as follows: a)
OPERATOR will promptly surrender possession of the Property to MANAGER or its designee in as good
order and condition as when the same was entered upon by OPERATOR, loss by fire, acts of God, or
ordinary wear and tear excepted; b) OPERATOR will,prior to the expiration or termination date, remove
all of its grain, farm equipment, livestock, tools, supplies, rubbish, and personal Property of all type and
description from the Property at its own cost and expense; c) If OPERATOR should fail to deliver
possession of the Property to MANAGER or otherwise fails to comply with the terms of this Paragraph
27, MANAGER may at its option, take such action as required by local law to obtain possession of the
Property and to remove OPERATOR's personal Property, at OPERATOR's sole cost and expense, or
charge OPERATOR liquidated damages in the amount of $100 per day until possession has been
delivered and OPERATOR's personal Property has been removed, it being agreed that it would be
difficult to determine the actual amount of damages that may be suffered by MANAGER by reason of
FARM#20039-1 MCFADDEN FAMILY PTNSP LLP
Rev. 09-2014 PaC,,-6
OPERATOR's failure to yield possession.
28. Binding on Heirs: Except as provided in Paragraph 34, and except as may be mutually agreed by
the parties, the provisions of this Lease shall be binding upon the heirs, executors, administrators, and
successors of both MANAGER and OPERATOR in like manner as upon the original parties. The rights
referred to herein shall not include subleasing or assignment as set forth above.
29. Partnership Not Created: This Lease should not be construed as giving rise to a partnership, and
neither party shall be liable for debts or obligations of the other without written consent, and OPERATOR
has no authority to incur any obligation on behalf of OWNER or AGENT.
30. Notices: Except as otherwise expressly provided by law, any and all notices or communications
required or permitted by this Lease or by law to be served on or given to either party hereto by the other
party shall be in writing and shall be deemed to be duly served and given when personally delivered, or
deposited in the United States Mail, First Class,postage pre-paid, addressed to the party at its last known
address.
3-1. Time of-Essence: Time is-expressly-declared to be of=the-essence in-this Lease. -- --
32. Farm Programs: Participation of this Property in any Local, State or Federal agricultural,
conservation or similar programs, or any program for carbon sequestration, and compliance with the terms
and conditions of such programs shall be subject to the direction and control of MANAGER.
33. Sale of Property: OPERATOR acknowledges and agrees that OWNER may desire to sell the
Property between the time this Lease is made and entered into and the following January 1st. If a sale
contract on the Property is entered into, and OPERATOR is notified in writing of the sale, before such
January 1St, OPERATOR agrees to terminate this Lease and to return full possession of the Property to
MANAGER. MANAGER agrees to reimburse OPERATOR for any labor or inputs provided by j
OPERATOR in anticipation of the upcoming crop year. Reimbursement shall be at a rate not in excess of
the custom rates published by the local State University or County Extension Office.
I
34. Death or Incapacity of OPERATOR: OPERATOR agrees that this Lease is a personal services
contract with MANAGER, and that in the event of OPERATOR's death or disability prior to
commencement of farming operations or payment of all rent due hereunder, whichever occurs first, this
Lease shall, at MANAGER's option,not take effect and shall be null and void.
35. Termination - Compensation for Work Done: OPERATOR acknowledges and agrees that this
Lease will terminate on the date set forth under Term, above, and that OPERATOR is not authorized to
provide labor or inputs of any kind in anticipation of growing crops to be harvested following the
termination date (i.e. wheat), without the written approval of MANAGER. OPERATOR shall not be
entitled to reimbursement for labor or inputs voluntarily provided, without prior written approval. Where
approval has been granted, reimbursement shall be at a rate not in excess of the custom rates published by
the local State University or County Extension Office.
36. Possession - Liability: MANAGER shall not be liable in damages for its failure to deliver
possession of the Property for any cause beyond its control.
37. Extension of Term - Amendments: The parties hereto agree that no act of either party or both
parties hereunder shall be construed as an extension of this Lease or any change in its terms unless the
same is reduced to writing and signed by both parties.
38. Oil, Gas and Minerals: This Lease is subject to all oil, gas or mineral Leases heretofore or hereafter
executed by OWNER or its agents. OPERATOR agrees to allowing exploration companies to enter upon
the Property and make such exploration and drilling as may be proper at any time upon agreement by the
exploration companies to pay for all damages to growing crops of OPERATOR and growing crops and
Property of MANAGER Upon request, OPERATOR shall be notified by MANAGER of known or
FARM#20039-1 MCFADDEN FAMILY PTNSP LLP
Rev. 09-2014 Pare 7
I
anticipated oil,gas or mineral exploration activity.
39. General: (a)It is mutually understood and agreed that the use of Global Positioning Technology on
the Property requires the prior consent and approval of MANAGER,which consent and approval will not
be unreasonably withheld. ownership,access to, and use of all information generated through the use of
Global Positioning Technology shall be the property of MANAGER,unless otherwise mutually agreed
upon in advance by MANAGER and OPERATOR, in writing;to the extent OPERATOR is in possession
of such information, it will promptly deliver the same to MANAGER upon request; and(b)It is mutually
understood and agreed that this Lease shall be governed by the laws of the state in which the Property is
located. It is further recognized by the parties that certain form provisions of this Lease may not apply due
to the particular type of agricultural operation covered. Therefore, this Lease shall be understood and
interpreted in a manner consistent with the actual agricultural operation covered herein,and the applicable
laws of the state in which the Property is located.
40. Miscellaneous Provisions:
1. IF HAY IS PLANTED. OPERATORS SHARE OF SEED EXPENSE WILL BE PRORATED OVER
A 3 YEAR TIME FRAME. OPERATOR WILL NEED TO PROVIDE PROOF IN FORM OF SEED
BILLS IN ORDER TO RECEIVE REIMBURSEMENT.
2. RENTER AS BEST AS POSSIBLE AGREES TO MOW OR SPRAY ROAD DITCHES AND GRASS
WATERWAYS TO CONTROL WEEDS AND SMALL TREES AT LEAST TWICE PER YEAR AT
HIS OWN EXPENSE.
2. IN CORN ROTATION YEARS RENTER AGREES TO APPLY AT LEAST 200 POUNDS PER
ACRE OF 11-52-0 OR 18-46-0 FERTILIZER AND AT LEAST 100 POUNDS PER ACRE OF 0-0-60
DRY FERTILIZER PER YEAR AND PROVIDE PROOF OF APPLICATION TO OWNER IN THE
FORM OF BILL SUMMARIES FROM LOCAL SUPPLIER. VRT APPLICATION IS OKAY AS
LONG AS TOTAL TONNAGE IS CLOSE TO THESE NUMBERS.
3. IN SOYBEAN ROTATION YEARS RENTER AGREES TO APPLY AT LEAST 200 POUNDS PER
ACRE OF 0-0-60 DRY FERTILIZER PER YEAR AND PROVIDE PROOF OF APPLICATION TO
OWNER IN THE FORM OF BILL SUMMARIES FROM LOCAL SUPPLIER VRT APPLICATION
IS OKAY AS LONG AS TOTAL TONNAGE IS CLOSE TO THESE NUMBERS.
4. OPERATOR AGREES COOPERATE WITH IMPLEMENTATION OF NEW CONSERVATION
RESERVE PROGRAM ACRES IF OWNER CHOOSES TO DO SO.
5. OPERATOR WILL FOLLOW SOIL CONSERVATION PLAN AS OUTLINED BY NATURAL
RESOURCE AND CONSERVATION SERVICE.
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IN WITNESS WHEREOF, the parties hereto have entered into this Farm Lease and Security
Agreement on the date first above written.
DISCLOSURE:
Farmers National Company, Farm Management AGENT for the OWNER, hereby discloses to
OPERATOR that: 1) it is acting as the agent of the OWNER, with the duty to represent the
OWNER'S interest; 2) it is not, and xvill not be the agent of OPERATOR; and 3) information
given to Farmers National Company will be disclosed to the OWNER.
12119/2014
Operator: JOHN V MCFADDEN/3508 Date
1
12/19/2014
Agent: FARMERS NATIONAL COMPANY Date
The farm operator grants permission for Farmers National Company to receive a copy of the
FSA crop acreage certification for the terns of this lease. This is in regard to this farm that is
rented frons Farmers National Company.
FARM#20039-1 MCFADDEN FAMILY PTNSP LLP
Version: 20039-2015-1-20141218105517
AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
JOHN VEACH
TO TERMINATE TENANCY OF FARM LEASE
This Agreement, dated for reference purposes the 1?�fk day of tTat--4
2015, is made and entered into by and between the City of Dubuque, Iowa (City), and
John Veach (Veach).
Whereas, Veach entered into a Farm Lease with McFadden Family Partnership,
LLC (McFadden Family)for certain real estate (the Real Estate)described therein, a copy
of which Farm Lease is attached hereto as Exhibit A; and
Whereas, the term of the Farm Lease is from March 1, 2015 to February 28, 2016;
and
Whereas, City and McFadden Family have entered into a Purchase Agreement
which includes the Real Estate; and
Whereas, pursuant to the Purchase Agreement, City has assumed the Farm
Lease; and
Whereas, City and Veach have agreed to terminate the tenancy of the Farm Lease
on the terms and conditions set forth herein.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS
FOLLOWS:
SECTION 1. Subject to Section 2, City agrees to extend the tenancy of the Farm Lease
for an additional term from March 1, 2016 to February 28, 2017, on the same terms and
conditions as the current Farm Lease, and Veach agrees that the tenancy of the Farm
Lease will terminate on February 28, 2017 without further notice from City to Veach.
SECTION 2. City may terminate the tenancy of the Farm Lease at any time in City's
sole discretion upon ten (10) days written notice delivered to Veach and Veach agrees
that after such ten (10) day period, Veach will surrender the tenancy and all of Veach's
right, title and interest in and to the Farm Lease and the Real Estate will automatically
vest in City.
SECTION 3. Upon termination of the tenancy of the Farm Lease, or if damages occur
to the leased premises (including but not limited to all row or other crops, or the ground
subject to the leased premises or any improvements thereon) because of the City's due
diligence in connection with the Purchase Agreement, as consideration in either or both
of those events, City agrees to pay Veach $1,000 per acre, or any part thereof, for(i) any
070915bal
crop that cannot be harvested by Veach or (ii) or for damages caused by such due
diligence by or on behalf of the City. For example, if the due diligence by or on behalf of
the City damages 1.5 acres of the leased premises, the City shall pay to Veach per the
foregoing $2,000. In the event that there is no crop on the leased premises at the time
the Farm Lease is terminated, the City shall pay to Veach $200 per acre (i.e. 37 acres @
$200/acre equals $7,400 since 37 acres are leased) to Veach in full satisfaction of such
termination.
SECTION 4. City, its counsel, accountants, agents and others authorized by City, are
granted full and continuing access to the Real Estate and all parts thereof, upon
reasonable notice to Veach for the purpose of inspecting, surveying, engineering, test
boring, performance of environmental tests and such other work as City considers
appropriate.
SECTION 5. Veach agrees to indemnify and hold City harmless from any and all claims
of any kind related to the Farm Lease or the Real Estate arising out of or related to the
Farm Lease accruing prior to the surrender of the tenancy as provided in Section 2.
CITY OF DUBUQUE, IOWA JOHN VEACH
l.q 1 ri
By: By:
Michael C. Van Milligen o n Veach
City Manager
2
EXHIBIT A
FARM LEASE
3
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National
Wl&GaXISIMUneu •AgrkalarflCaAwlallow ' Aeru.11■r.1 Aopra.,ls
i� CeMMadMp Mu 4ce:w�'Ca"ernL�w A Rcare.no�&r+ict.
Cornpany- F.fRJILEASE A"SECUJUTYAGREEAreAT
CASH.RENT
FArli a:This Farm Lease and Security Ag=meot(the"Lease")is entered into by and between Farmers
Alational Company,(`AGSM''),hereinafter acting as the Fum Manager for O"ER of.the real estate or
its authorized representative, ('OWNER"),MCF_ ADDEN FA_M Y PARTNER; rP iLFF,(cotiectively
referred to herein as the'lAANAGER"I and IOtd;!t VF..AC4-I_ 12216 EhMLJSfYt MILL Rn_nt JRIIQX JE
IA. }hereinafter refuxred to as OPERATOR.
rxaVzztX: MANAGER Leases to OPERATOR the following described real Property(the:"Pro
perty'):
MY114 EX 13L1 G SITE M Nw CORNtiR OF I 0 A +/_A BLDG ALONG N SlD_ O_F F 1�3 A_+/-SF
29, TWP $9N. RGI: 2E_ Dubuquc .` County, State of Iowa. containing approximatcly 2v acres,
excepting there from.ali rights to hunt,fish, trap or otherwise take or_harvest rush and game itp6a the
Property,all of which rights(including the right to Lear)are reserved to MANAGER,its successors and
assigns.
Ism The term of this Lease shall begin on 91010415,and share end on 02J/=Q16 without notice of
any type bang requixed of MANAGER, unless expressly required by applicable state law. ProvkkA
however,that MkXAGER may terminate this Lease at any time upon OPERATOR's faauue to timay
pay the full amount of any rent du hereunder.
Emr. OPERATOR shall pay rent to MANAGER,as follows:
21TMLAB _F ACRES X 1211,ZEE ACRE s S7 319,
FINAi RENT IVIG URF WELL HE ADAISM S SM QN ACTUAi Tit 1 ARi F ACRES
CERIFIED AI FARM SER IM AGENCY OFFMF,
CASH REM IS DUE AS FOLLOW$:
03101/2015 $7,319.00
Provided,however,if all of the rent due hereunder is paid in full on or before 031012015,or if the
OPERATOR has provided the MANAGER with a saatissfsctory and enforceable Letter of Credit securing
any remaining cent doe hereeuuder,the provisions of Operating(,*Ovet=ts 7 through 11,below,shall not
apply.
All crops will be planted, and all cropping practices conducted in accordance with a wrinen crop plan
between MANAGER and OPERATOR("Crop Plan'l which shall be made a part of this Lease.
Exgefttti' Exetpt as otherwise specified herein,all expenses incident to the operation of the Property
during the term of this Lease shall be paid by OPERATOR
ALL SFFD A('rRiCtit.TiJ Ai T itESTONF R77i IMI:M ICiD Ahn Ai f
OTFi R t1P P OI?tiC'T'(O�t.FXPENSES ARr^. (00'b OPEtt`ATOtt •_7t'PFAiSE4.
OPERATOR'S WILL AV PRORAM OBRA 4—YEAR TME FRA'1dF
QPFRATOR WILL aED TO pRQY=PROOF n FORM OF AMPLICATION TiCAS WELL
FLS,BILLS IN 0..WFR TO RECEU RE1MR,IWEMMM
Rr- 09.3414
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1L4rm.E[Qgruws: All decisions concerning participation of the Property in any Local,State,or Federal
agricultural,conservation or similar programs shall be at the discretion of MANAGER in accordance with
the Crop Plan. Arty division of payments shall be in conformity with applicable governmental taws and
regulations.
ht is mutuiilly understood wW agreed that if OPERATOR a) receives any advance government program
payments for the faurt year covered by this Lease or any subsequent year, and b) fails or refits to
comply with the tarns and conditions of this Lease,and e)is terminated by MANAGER as OPERATOR
under this lease for any reason,therm OPERATOR agrees to immediately return the advanced govetttoermt
program payments. As determined by time f=arm Service Agency.the payuannts shall either be retrurred to
the FSA,or paid to the new tenant to whom the Property is Leased for the applicable firm year.
OPE?MR SHALL P.[ .l M�201 S EM aHAIN PR .RANI PhV vtEN-M
SOIL CONSELVATION PRO?ECTS SIW,I,BE AT THE OPTION OF THE MANAGBR
TO RE?f' IVI AI�I�I:I lfrIBLE Gd
PAY
Agd4mknW Chenxkals• OPERATOR agroes that the amounts of fittitm,[ince,and other agriculhaw
chernicaLi to be applied will be in accordance with the Crop Plea agreed to with MANAGER
QPERATOR
AGREES TO,AU Y LIME LN CItEf K:IENT AWIM TQ j DUAIN A AiJ'`P MUM
p I L F,V EL OF 6.4 AT TN$CONCI, Jet_ ION CIE ME ti OWJ NG U a ON &UP_t,RATOR .
CQ IMT ETl?SOR S"C=�..f?iRE['rrnt:nF THF ht kNAG R V%'1.TI U IJ ILR VAI,S_
�t aT Ttl FXC FFt) EE3 Y BBT�VE TFCTS A14D TO F t TRIy Ott COPtF.3 2O 3 -_1 AI 4(
l4fAi•IAt'rER UWwJ R _nt cT TH19 3RA I r,a vac v T !b s OTHE$�VI E S fA1Fb II1i TFtpt ACt
i
Operating Co.saaots: The following paragraphs may be deleted,under appropriate circumst wces:
0PERATZW COWAKAN TS.
L Rmt Cash rent shall be paid on the dates set forth herein,without fiuthsr notice from MANAGER
to OPERATOR Cash rent not paid when due shall bear interest until paid,at the tato of IS%per annum,
our the highest rate allowed by the laws of the state where the Property is located, whichever is less.
OPERATOR.agrees to pay a service charge of 325 for any returned or insufficient finds check
2. �jetslttent-SuhlafW OPERATOR agrees not to assign this Lease to any other person,ror
sublcaae all or any panof the Property without the prior writteu permission of hfANAGER. For the
purpose of rhos section,an asaigjo ooent of this Lamin shall b.. deenled to have taken place when all or
substantially all of the agricultural aperatiotrs are performed by hired labor or by one or more third parties
'*Cd by OPERATOR to perform agricultural operations on a custmtr basis.
3. $iglu fo Enter: MANAGER, its agents,assigns.lessees,or contractors shall have the right to go
upon the Property at any time to inspect the sarne or to make repake or imr ovements thereon,or&r any
Other purposes incidental to the management of the Propctty. MANAC K its lessees,agents,as,signs or
contractors sheat[also have the right to go upon the land to fall till,or develop the lend for irrigation,to
install conservation structures,to seed or sow any grain or grass thereon or to hunt,fish,trip or odwwisc
take or harvest fish and game from the Property.
4. L111=110a In the event of default by OPERATOR resulting in A l r,NAG1 R"toying an attorney
for the purpose of enforcing any ptovisioa, of this Lease or rcg"'ritng possession of the Property,
OPERATOR agrees to pay MANTAGER's reasonable attorney's fees and expen-ses on deaartnd.
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Delinquent payments shall draw interest at the default rate rcfarcd to in Operating Covenant 1.
5. 211a&:All covenants and agreements contained in this Lease are declared to be conditions of the
Lease for the term dernised to OPERATOR Should OPBRATOR default is the perfounm%ce of any
covenant, condition or agreement contained herein, MANAGER may laminate the Lease as provided
!ride,and/or bring an action for damages,parfommce,or other suitable remedy in a court of competent
jurisdiction. Any waiver or failure by MANAGER to'sb ictly earforce any provision of this agreement
Shall not be deemed to restrict or limit MANAGER's ability to strictly enforce said provision at any time
thereafter.
6. Fstlure to Perform I aught of Entry: OPERATOR agrees that if he or she fails to diligently
perform any agricultural activity provided for hereunder for the proper operation and management of the
Property at the proper time,or in the proper manner, or if he to she fails to follow Crop Plan or assigns
this Lease or subleases the Property in whole or in par.,MANAGER may, after giving OPERATOR 72
hours written notice, personally delivered to OPERATOR.or sent to OPERATOR's last known address
by U. S, iNWl, postage pre-paid, either (a) declare this Lease to be mmiinated and take immediate
possession of the Property, ancVor(b)enter upon the Property in person or by agent or contractor and
Perform the necessary agricultural aciivities which OPERATOR should"done,and MANAGER shall
add all expenses incurred therewith to the teat to be paid hcr+etnWer,the same to be immediately die and
bear interest until paid at the rata set forth under Operating Covenant 1.
T Fyuqdaj Ktatemm„t- OPERATOR agrees to furnish MANAGER it statement showing
OPERATOR's current rmancial position upon request of MANAGER
3. Intolvena of OkFJ AYQR': The insolvency of OPERATOR a receiver being appointed to take
possession of all or substantially all of the Property of OPERATOR, the filing of a voluntary or
involuntary barlvuptcy proceeding or the matin g of a general assignment for the benefit of creditors by
OPERATOR shall, to the extent allowed by law, enti•1e MANAGER to terminate the Lease and
immediately re-enter and regain possession and operation of the Property.
9. Sale and Removal of Cry: OPERATOR agrees and acknowledges that,until the scheduled cash
rent payments due hereunder have beeat paid and are not delinquent. and all of the grain has been
deliveted,' &TANAGER sl all have Property rights in the crops pro& ed on the Property, and therefore
covenants and agrees not to scll or remove any of the crops raised on the Property during the term of this
Lease until the rent due hereunder has been fully paid or MANAGER has given OPERATOR written
consent to such sale or removal.
10. Secnritr ]merest: As security for the rents and other paymcnts and obligations dire hereunder,
OPERATOR hereby grants MANAGER a security interest in all crops growing or to be grown,on.the
Property, on all harves"ed crops now owned or hereafter acquired by OPERATOR, wherever noted,
grown,or produced,on the Property,on all livestock kept or pastured on the Propeny,and on all proceeds
of such crops and UvestocL Thc security interest granted herein shall extend to and cover all warehouse
receipts issued by any warehouse as evidence of the delivery and storage of crops.It shall also extend to
geaeral intangibles,aetOunts,and mats,issues and profits,and firm program payments or entitlements of
every type. The security interest shatI also extend to any proceeds recovered under insurance policies
eovcrmg the crops.OPERATOR agrees to execute any and alt documents required to grant this security
inkrest and perfect an enforceable lien for the benefit of MAI AGER. OPERATOR shall fiustish
MANAGER a list of buyers,commission merchants,and setlir"g agents to or itubugh whom.OPERATOR
may sell crops growing or to be grown on 6e Property,in accordance with the Food Security Act of 1935.
11. Warranty of OPERATOR- OPERATOR expressly warrants and guarantees to MANAM that
arty security kttctrst granted to MANAGER Is a first security interest,prior and paramount to any and all
Other security interests pertuni.-4 b the Property covered thereby,including,but not litmited to those that
ave
may hbeen granted to a lender, machinery or equipment provider, or crop input provider.
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OPERATOR further agrees that if this warranty and guaranty is breached,OPERATOR will promptly
obtain ouch releases,waivers or subordination,from other secured parties as may be required to provide
MANAGER with a first security int:rast,and upon failure to do so,MANAGER may,in addition to any
other n=edy it may have hereunder,immediately tarminatc this Lease and anter into full possession of
the Property.
12 O .RAVE'S Co ttidbution. Accounting: OPERATOR agrem (a)to follow the agricultural
practices that are currently recommended for,and that are best adapted to this type of Property and etops,
and this locality,unless other practicer aro expressly agreed upon with MANAGM(b)to furnish all
labor and equipment nceesmry to operatr.the Property;(e)to pmraptly complete a"harvest results"card,
and return it to MANAGER within 48 hours following delivery of MANAGER'S harvested grain,if any;
and(d)to reimburse MANAGER for any loss expakowd by MANAGER.as a result of OPERATOR's
failure to provide the harvest results to MANAGER as nqucted ander(c),above. Despite any proviaion
herein to the contrary, OPERATOR shall provide,at its own cost and expense,complete and accurate
yield dociun,:ntation to MANAGER within two(l)wtdm following harvest of each sop gown on the
Property. Y-Wd documentatiaa raider this Paragraph shall be in the form of scale tickets,yield monitor
data,k or actnntl grain bin measurements.
13. are of property: OPERATOR agrees that he will;a)cultivate and otherwise operate the Property
in a professional workmanlike manner,and in accordance with the trop Plata and generally recognized
and approved agricultural ptacf r,b)when so duected,'furu on the contour,or use minimum tillage or
no tillage agricultural.practices; c)operate the Property in eonfi wmity with appropriate soil and water
conservation ptaceces, and in such a way as to maintain and if possible enhance sail productivity;d)
operate the Property in coufoanity, with all requited or applicable conservation plans or programs,
including but not limited to those subject to the jurisdiction of USDA and EPA arhd their related agencies;
and e)[seep die Property clean and free of trash,rubbish,refuse,dead animals and wast:.
14. Environmental Cotup inane; (a)OPERATOR warrants thou he is knowledgeable of the Federal,
State and Local laws and regulations pertaining to the operation of the Property with regard to matters of
enviroauucutal compliance,and the protccttn and preserva6cm of soil,water and other natural resources;
(b)OPERATOR warrants that hie will operate the Property in full compliance with all such laws,and will
notify MANAGER immediately of any accidents,problems,c militions o:occurrences on tt.e Property
which may duvaten compliance with such laws or teVdedtotrs,or which may result in liability or dmzge
being imposed urn the AGE.YT or OWNER;(e)OPERATOR warrants th:ct all yertitizcrs,aocuhwal
chemicals, petroleum prod=ts and ba=dous or toxic v or substances in, on, or afficting the
Property will be handled, used, stored. contair&A transported, applied, removed artanJor disposed of in
accordance with all applicable laws, regulations, m2nufacturer's ditrcctioas and labeling, (d)
OPERATOR acknowledges that he is knowledgeable of the Wortccr Ptotrction Standard adopted by EPAr,
and warrants that he will see that the requirements of the Stwdard enc adhcrcd to in regard to the use and
apptuatioa of agricultutal chemicals on the Property; and (e) OPERATOR agrees to complete any
Envi rorunental Questionnaaw or other requests for environmental information solicited by MANAGER.
15. Machinery tta&ZSuivm jot OPERATOR shall be responsible for providing the machinery and
equipment necessary for planting, cadtivafing and harvesting the crow, and for any other agricultural
op=dous incidcnW to operating the 11rn perty covered by d ds Lease. All conte of purchasing, reat4V.,
kaesing, and operating the machinery and cquipm=t, including the cost of custom operations, shall Lc
paid by OPERATOR,except as odurwhsc specfed herein,
16. Weed Coatrel: OPERATOR agrees to keep the cultivated areas clean and free from weeds and
Prtber agrees to crit or spray weeds,trees and shrubs growing in the fcace rows and mon-crop areas,as are
necessary to kap these areas neat and presentable. All costs involved in controlling weeds aha11 be paid
by OPERATOR except as otherwise specifxd herein. OPERATOR agrees to snow the roadsides as often
as necessary to present a nee appearance or as directed by MANAGER.
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17. Insect and Disease Contra= OPERATOR agrees to carry out all approved practices for the control
and eradication of corn borer.motwornk and other cap insects,pests and diseases,as may be necessary,
at his own cost,unless otherwise steed herein,os In writing by MANAGER.
IS. l eTtiKzw 1A= nd tirhowu L OPERATOR agrees to ]rant out and distribute, as agreed with
MANAGER,any manure andlor compost suitable to be used,and to apply at the proper time and in the
proper manner alt fertilizers and agricultural lima. Further, OPERATOR will, upon request, provide
MANAGER with receipts,sale tickets,application mcon3s,and other documentatioa showing the use or
application of all agricultural chemicals to which state, federal or local record keeping requirements
apply. OPERATOR shall be responsible foi all costs of purchasing,transporting,and applying manure,
fatdize s,and agricultural lime,except as otherwise agreed herein or in writing by MANAGER-
19.
ANAGER19. CzM�jj[asR4jiu= If applicablo, OPERATOR shall be responsible for the costs of handling crops
raised on the Property,un otherwise agreed herein of in writing by MANAGER For purposes of this
paragraph."handling"shall include,but shall not be limited to placing crops in storage facilities located
on the Property, hauling to a grain elevator or other facility selected by MANAGER, and such tomer
handling services as required ftm.time ttr dine by MANAGM.
20. Straw and Stal)w OPERATOR ar_,recu not to burn any stacks, straw, stalks, or stubble, or to
remove,any straw or staQcs from the Property,unless otherwise expressly agreed herein,or in writing by
MANAGER.
21. hnUov aiaencs: OPERATOR agrees to perform ordinary maintenance tasks and will otherwise
Properly maintain all buildings,file lines,fences,irrigation equipment,water systems and other
itmprovements on the Property,and shall yield them up to MANAGER at the end of the Lease term in as
good order and condition as at the beginning thereof,normal wear and tear excepted. OPERATOR
further agrees to provide labor and to hard smh materials as may be neeessaty for said maintenance,and
to provide the labor and materials ncrrisary to wake minor repairs to said improvc+nents that are yr may
be due as a result of ordinary swear and tear. OPERATOR shall be solely responsible for the cost of
making repairs to improvements which have been damaged or destroyed because of OPERATOR's
failure to maintain,or adhenvise because of OPERATOR'a neglect,abuse,negligence,or lack of
attention.It is mutually understood and agreed that MANAGER shall not be obligated to replace any
improvemeAuts lost or destroyed,regardless of whether or not such loss was covered by insurance.
22. Fea n: OPERATOR will maintain enol retnove fences located on the Property at the request of
MANAGER without charge for labor. In the event new fence is required, compensation shall be as
provided for elsewhern'herein.
23. [mnr&vments&Inde by CIPFRATM, It is mu;t ally understood and agreed between the-parties
hereto that alt buildings,fences and improvements of every kind and nature that may be erected upon the
above described Property during the term of this Lease by OPERA l'UK shall be deemred as additioeai r_m
and shall inure to the Property and become*he Property of MANAGER unless permission to erect and
remove the satuc shall be obtained beforehand,in writing,and made a part of this Lease.
24, to"—we OPERATOR shall carry the following types and minimum coverage of insurance:(a)
Worker's Compensation Insurance if required under the laws of the state where the Property is located;
(b)Compreheasive General Liability Insurance,including Employer's Liability,with re:+pert to
OPERATOR's use and occupancy of the Property and all operations incidental thereto,with traits of not
Icss than.S1,000,000 per occurrence. Operator may at the option of NUNAGER be required to name
OWNER and the AGIRNT as additional insureds_ This insurance shall also provide contractual liability
insurance covering the obligations assumed by OPERATOR under the indemnity provisions under
Operating Covenant 2S(a)only;(c)Automobile Liability lasurance on all owned,notn•ouned,hired or
Leased automotive equipment in eonJuuctk m with operatioms,in amounts not less than 5500,000 per
occurrence;and(d)if required by MANAGER,crop or eroplrevenue insurance coverage.If crop or
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crop/revenue insurance is tequir4 it will be net forth in Operating Covenant 40,below.OPERATOR
hereby certifies that all applicable itwou oo coverages are currently in efbxt and will remain In effect and
unchanged throughout the torn of this Lease and will provide a certificate of insurance to OWNER upon
request.
23. lalemnifkatiamC OPERATOR agrees to indemnify and hold OWNER and the MANAGER
ha niless from any and all claims, liability, loss, damage or expenses resulting from OPERATOR's
occupation and use of the Property,specifically including without limitation any claim,liability,loss or
damage arising (a) by reason of the injury to person or Property from whatever cause (other than
negligence or misconduct by MANAGER)while in,on or near the Property or in any way connected with
the Property or with the improvements or personal Property in or on the Property,including any liability
for injury to the person or personal Property of OPERATOR its agents or employees;(b)By reason of
any work perfotmcd on the Property or niateriat s fu ttished on the Property at the instance of or request of
OPERATOR,its agents or employees,other$:m negligence or misconduct by MANAGER,its agents or
employees;(c)By reason of OPERATOR's failure to perform any provision of this Lease or to comply
with any requitermt imposed upon it or an the Property by any duly authorized governmental agency or
political subdivision; provided that OPERATOR shall not be responsible to comply with any
requimments necessitating structural or permanent improvements or changes to the Property;(d)Because
of OFERATOR's Mute or inability to pay as they become due any obligation incurred by it in the
agricultural or other operations conducted by it on the Property. MANAGER will indetnmify
OPERATOR for losses to OPERATOR's livestock and equipment resulting from MANAGER's Lease of
hunting rights on the Property to third parties. The provisions of the foregoing indenmific4on agreement
shall remain in effect following the terminationes of this Lcase.
26. Independent ('ootraffors: If OPERATOR employs indeperdeat contractors to perform any work
on the Property,or to conduct its flaming operation.OPERATOR shall supervise the work performed by
such contactors and assure MANAGER tbat each contractor maintains in fall force and ef2'et% at
contractor's sole cost and expense,the kinds and amounts of u:stuante specified in Operating Covenant
24 herein, and any other Ummmee MANAGER,dams reasonably necessary or d:.simbic, under the
circunvIances.
27. Espjration of Term:?erminadow l pun expiration of the tam of this Lease;,or upon termination
of the lease prior to expiration of the farm, OPFRATOR camcoants and agrees as foUows: a)
OPERATOR will promptly suurendet possession of the Property to MANAGER or its designee in as good
order and audition as when the same was entered upon by OPS ATOR, loss by true,acts of Ged,or
ordinary wear and tear excepted;b)OPERATOR well,prior to the expiration or termination date,remove
Al of its gran,farm equipment.livestock,tools,supplies,rubbish,and personal Property of all type and
descript on from the Propetty at its own coat and expense; e) If OPERATOR should fail to deliver
possession of the Properly to MANAGER or otherwise Mils to comply with the terms of this Fwagraph
27,MANAGER may at its option,take such action as required by local Law to obtain possession of the
Property aadd to remve OPERATOR's personal Property, at OPERATOR's sole coir and expense, or
charge OPERATOR liquidated damages in the amount of$100 per day mW posses.,zion has been
delivered and OPERATOR's personal Property has been removed, it being-dead that it would be
difficult to dctcrmin6 the actual amount of camases that may bG suffered by MANAGER by recon of
OPERATOR's failure to yield possession-
28. Fiud�xt e e RSitg: Except as provided in Paragraph 34,and except as may be mutually agreed by
the par`.ics, dir provisions of this Lease shalt be binding upon the heirs.executors,administrators, and
successors of both MANAGER and OPERATOR in like manner a5 upon arc original parties. The right3
referred to herein squall not include subleasing or assigmr cut as set forth above
29. PartneAW-hilt Cwttd. This Lease should not be construed as giving rise to a partnership,and
neither parry Shall be liable for debts or obligations of the other without written consent,and OPbRATOR
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has no authority to incur any obligation on behalf of OWNER or AGEN 1..
30. Node Except as otherwise expressly provided by law, any and all notices or communications
required or permitted by this Lease or by law to be saved on or given to either party hereto by dee other
party shall be in writing and shall be deemed to be duly served and given when pemnally delivered,or
deposited in the United States Mail,First Class,postage pre-paid,addressed to.the party at its last known
address
31. Time at Faience: Time is expressly declared to be of the essence in this Lease.
32. Farm Prnpratus: Participation of this Property in any Local, State or.Federal agricaltmal,
conservation or similar programs,or any program far carbon sequestration,and compliance with the teens
and conditions of such programs shall be subject to the direction and control of MANAGER
33. Sale of Property: OPERATOR aclmowledges and agrees fliki OWNER may "it to sell the
FroPe ty between the time this Lem is made and entered into and the:following January l st. If a We
contract on die Property is entered h=, and OPERATOR is notified in writing of the sale,before such
to rg
OPERATOR gees m Le;ininate,ft.�se.tel twn fuil.pessscssion oft Protpetty m
MANAGER _MANAGER agrees to reimburse ,OPERATOR for any labor or inputs provided by
OPERATOR In atukipation of the upcou"S crop year. Rtimbutsernent shalt be at a raw not in excess of
the custom rates published by the local State University or County Extension Office.
34. T1sat>k err Ineap�adty of C1P]+r a?QR. OPERATOR agrees that Pais Lease is a personal services
contrazt•wills MANAGER, and drat in the event of OPERATOR's death or disability prior to
cu-1--inert of lhrming operat:ons or payment of all rent due haeunder,whichever occurs first,this
Leaz5c shall,at MANAGER's option,not take effect and shall be null and void.
35. Terminatinn -CC`arnRcnaatian 19r Work Do OPERATOR acknowledges and agmes that this
Luse will terminate on the dal set forth under Ttrut.above,and that OPERATOR is not authorized to
provide labor or input's of any kind in anticipation of growing crops to be harvested following the
termination date(i e. wheat), without the yvlAc aogrova of MANAGER. OPERATOR shall not be
tridded to reitmburs.meet for labor or inputs voluntarily provided,%vithout prior wait m approval. Where
approval has been granted,reimbursement shall be at a rate not in excess of the custom rases pubiisbed by
the local State University or County Extension Office.
36. Possession - LhWW: MAA*AGER shall not be liable in damages for its failure to deliver
possession of the Property for any cause beyond its control.
37. Extonlion of 'ern . .Arn�.srfn....}e• TIM parties hereto agree that no act of either party or both
phr'.ics brrr.1luukr shall be construed as an extension of this Lease or any clangs in its terms unless the
same:is reduced to writing and signed by both parties.
38-01 Gas and h0reset: TUis Lease is subject to aft od,gar,or mineral Leases heretofore or hereafter
cxccuted by OW,�R or its agents.OPERATOR agrees to allowing exploration companies to enter upoo
the Property and macre such exploration and drilling as may be proper at any titrte upon agreement by the
expleratlon companies to pay for all damages to growing crops of OPERATOR and growing crops anLf
Property of&ONAGER.Upon request,OPERATOR shall be notified by MANAWA of known or
anticipated oil,gas or mineral exploration activity.
39.Gslit sL (a)It is mutually undcrstood and agreed that the nese of Global PoWiouft Tc0mlogy an
the Property tecpires the prior consent and approval of MANAGED,which corseut and approval will not
be unreasonably withheld.o%nership,acce_cs to,and use of ad information generated through the use of
Global Positioning Technology shall be the property of MANAGER,unless otherwise mutually agreed
upon in advance by MANAGER and OPERATOR,in writing:to dee extent OPERATOR is in possession
o2 such infommon,it will promptly deliver the same to MANAGER upon request;and(b)It is mutually.
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understood and agreed that this Lease sWI be governed by the laws of the state in which the Property is
located It is further recognL-ed by the parties drat certain form prorisiow of this Lease amy not apply doe
to the particular type of agriculture!operation covered.Therefom this Lease shell be understood and
interpreted in a manner consistent with the achsal agricultural operation covered herein,and the applicable
laws of the stave in which the Property is located.
40.Mise acorn Provisiontt;
1 IF 6Y iS PLAN D.OffAATORS SAMsl. :n r•. L-M WI L BE PRORATED OYER
A 3 MAR TIME FRAME OPFRATDR WILl.NEED TO PRDV P- QQF IN FOM OF SEED
RILLS IN„t1RI�EE TO RFCED R. EMURSELM N I
2.RENTED AS BEST AS POSSMT E AGREES TO MOW OR SPRAY ROAD DTCCHE AND GRASS
WATERWAYS TO CO OL XMS AND Sbj6U TRM,£AI LRA_5T TWICE PER NFA$AT
HIS OWN EXPENSE.
2.IN CORN ROTATION YEARS It;,t"�TIE AOR FFS TO APPLY AT LEAST 200 MMS PER
ACRE OF 11-S2-0 OR 1&A"FERIMIM ANn AT LEAST SOU PO lNiaS PER ACEF OF 04-60
DRY FFR I I7F.It PER YEAR A PROVIDE PROOF OF APPI KATION TO OWNER IN TIM
EQRM OF BILL STINUMARMS FRAM LOCAL St IMME V-q-TAPPUCATIONISMAYAS
LONG AS TOTAL TONNAGE IS CLOSE TO THESE MINIBLES
3 1��LS(3YBEAI4 ROTATION MRS R EM MMS TO APPLY Al LEAST 200 POI=a PER
AC RP OF 0_0-M DRY FERTILIZER PEE YEAR AND pROYIDg PROOF OF APPLICATION T[}
QWNER IN THE FORM OF BIU,SI Nf%LkRTF-lq FROM (X'AI.C17PPLIER VRT APPLICATION
I.S.OKAY AS LONG AS TOTAL TONNAGE IS CLCr-%E TO THESE NUMBERS-
4. OPFRATOR AC,REES CO YEFLM Wt H D&LEN ENTATION OF N 3M CONSERVATION
R>:SFRVE PROGEUM-1 ACRES IF 0%NFR CHOOSES TO DO SO_
5. RI?AIiE_RgtiLt FOLLC??L't_(),::=RV,A'fIOVPZANPROVit)EDBYNA_ IR I•RE� 14?R
AND CQMERYATIQX b4•_T VE'F V
itew.QO Z014 FARbta Z,q ,2-0y!UADMW F l�ttr_Y o t a_
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IN WITNESS Wb/MOF, the patties herew have entered into this Farm Lease and Security
Agreement on the date fiat above written.
DISCLOSURE-
Faunas National Company, Farm Management AGENT for the OWNER,hereby discloses to
OPERATOR that; t) it is acting as the agent of the OMNER, with the duty to mpresent the
OWNER's inbe,est; 2)it is not,and will not be the agcat of OPERATOR, and 3)info®ation
given to Farmers National Company will be disclosed to the OWNER.
C/ tyl SV2#1d
Operat0r:JOHN PEA CHI 9034 Doe
12R*.t01/
Agent:FA ifL'RSNA27ONAL COMPANY � Dete
rke far-operator grmtr permission for Farmers tvational COntpany to receive a copy eflhe
FSA crop acreage cerditeaWn for the terry of this lease- ]?ray b in regard to lhiTfarm lballs
rented from Farmers Nadanal Company.
FARM#20039-01MUADMN FAMILY P TKW LLP
version:200394M-o.201412 t8f05350
12
AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
JOHN MCFADDEN
TO TERMINATE TENANCY OF FARM LEASE
This Agreement, dated for reference purposes the 141* day ofSU
2015, is made and entered into by and between the City of Dubuque, Iowa City), and
John McFadden (McFadden).
Whereas, McFadden entered into a Farm Lease with McFadden Properties, LLP
(McFadden Properties) for certain real estate (the Real Estate) described therein, a copy
of which Farm Lease is attached hereto as Exhibit A; and
Whereas, the term of the Farm Lease is from March 1, 2015 to February 28, 2016;
and
Whereas, City and McFadden Properties have entered into a Purchase Agreement
which includes the Real Estate; and
Whereas, pursuant to the Purchase Agreement, City has assumed the Farm
Lease; and
Whereas, City and McFadden have agreed to terminate the tenancy of the Farm
Lease on the terms and conditions set forth herein.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS
FOLLOWS:
SECTION 1. Subject to Section 2, City agrees to extend the tenancy of the Farm Lease
for an additional term from March 1, 2016 to February 28, 2017, on the same terms and
conditions as the current Farm Lease, and McFadden agrees that the tenancy of the Farm
Lease will terminate on February 28, 2017 without further notice from City to McFadden.
SECTION 2. City may terminate the tenancy of the Farm Lease at any time in City's
sole discretion upon ten (10) days written notice delivered to McFadden and McFadden
agrees that after such ten (10) day period, McFadden will surrender the tenancy and all
of McFadden's right, title and interest in and to the Farm Lease and the Real Estate will
automatically vest in City.
SECTION 3. Upon termination of the tenancy of the Farm Lease, or if damages occur
to the leased premises (including but not limited to all row or other crops, or the ground
subject to the leased premises or any improvements thereon) because of the City's due
diligence in connection with the Purchase Agreement, as consideration in either or both
070915bal
of those events, City agrees to pay McFadden $1,000 per acre, or any part thereof, for(i)
any crop that cannot be harvested by McFadden or (ii) or for damages caused by such
due diligence by or on behalf of the City. For example, if the due diligence by or on behalf
of the City damages 1.5 acres of the leased premises, the City shall pay to McFadden
per the foregoing $2,000. In the event that there is no crop on the leased premises at the
time the Farm Lease is terminated, the City shall pay to McFadden $200 per acre (i.e.
37 acres @ $200/acre equals $7,400 since 37 acres are leased) to McFadden in full
satisfaction of such termination.
SECTION 4. City, its counsel, accountants, agents and others authorized by City, are
granted full and continuing access to the Real Estate and all parts thereof, upon
reasonable notice to McFadden for the purpose of inspecting, surveying, engineering,
test boring, performance of environmental tests and such other work as City considers
appropriate.
SECTION 5. McFadden agrees to indemnify and hold City harmless from any and all
claims of any kind related to the Farm Lease or the Real Estate arising out of or related
to the Farm Lease accruing prior to the surrender of the tenancy as provided in Section
2.
SECTION 6. McFadden previously granted to City an easement over certain property
owned by McFadden, as shown on Exhibit B, in connection with the Bergfeld acquisition
by the City, which easement is not used by the City. City agrees to vacate and terminate
in writing in recordable fashion such easement within thirty days of the execution hereof
and to record a quit claim deed conveying all of its interest in such easement to
McFadden, without reservation, at City's expense.
CITY OF DUBUQUE, IOWA JOHN MCFADDEN
By: By:
Z�--L Z�f Z�4�
Michael C. Van Milligeno n McFadden
City Manager
2
EXHBIT A
FARM LEASE
3
FARM LEASE-CASH
THIS LEASE ("Lease") is made between MCFADDEN PROPERTIES, L.L.P., an Iowa
limited liability partnership, whose address for the purpose of this Lease is c/o Gary McFadden,
14005 Old Highway Road,Dubuque,IA 52002 ("Landlord")and JOHN MCFADDEN("Tenant"),
whose address for the purpose of this Lease is 14081 Old Highway Road, Dubuque, IA 52002.
THE PARTIES AGREE AS FOLLOWS:
i
1. PREMISES AND TERM. Landlord leases to Tenant the following real estate situated
in Dubuque County,Iowa(the "Real Estate"):
The NW 1/4 SW 1/4 Section 29,T89N,R2E,except part sold to the City of Dubuque
by Warranty Deed,Instrument No. 2671-02,records of Dubuque County Recorder;
That portion of Lot 1 of lot 1 of the SW 1/4 SW 1/4 lying North of Railroad Right
of Way in Section 29, T89N, R2E except part sold to the City of Dubuque by
Warranty Deed,Instrument No. 2671-02,records of Dubuque County Recorder,
and containing 59.44 total acres, more or less,with possession by Tenant for a term of one year to
commence on the 1 st day of March,2015 and end on the 28th day of February, 2016. 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.
2. RENT. Tenant shall pay to Landlord as rent for the Real Estate (the "Rent"):
I
(a) Total annual cash rent of$6,000.00 payable,unless otherwise agreed,as follows:$500.00
on the 1st day of March, 2015 and $500.00 on the 1st day of each month thereafter through and
including February 1,2016.
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 payments shall be divided 0%Landlord 100%Tenant.
3.INPUT COSTS AND EXPENSES. Tenant shall prepare the Real Estate and plant such
crops in a timely fashion as may be directed by 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 required by good husbandry,
shall be acquired by Tenant and paid for by the parties asfollows:
%Landlord % Tenant
(1) Commercial Fertilizer 0 100
(2)Lime and Trace Minerals 0 100
(3)Herbicides 0 100
(4)Insecticides 0 100
(5) Seed 0 100
(6) Seed cleaning 0 100
(7) Harvesting and/or Shelling Expense 0 100
(8) Grain Drying Expense 0 100
(9) Grain Storage Expense 0 100
(10) Other 0 100
Phosphate and potash on oats or beans shall be allocated_%the first year and %the
second year, and on all other crops allocated_%the first year and_%the second year. Lime
and trace minerals shall be allocated over 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
4.PROPER HUSBANDRY; HARVESTING OF CROPS; CARE OF SOIL, TREES,
SHRUBS AND GRASS. 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. Tenant shall timely
control all weeds, including noxious weeds,weeds in the fence rows, along driveways and around
buildings throughout the premises.Tenant shall comply with all terms of the conservation plan and
any other required environmental plans for the leased premises.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.
5. 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
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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.
(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, 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.
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 to the 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.
I 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.
(b) Tenant. 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 not be stored on the premises for more than one year. Farm chemicals for use on other
properties 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.
Tenant shall employ all means appropriate to insure that well or ground water contamination
does not occur, and shall be responsible to follow all applicator's licensing requirements. Tenant
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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 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, shall 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 Landlord's negligence,in which case each
party shall be responsible for that parry's defense of any claim. After termination, Tenant shall
remain liable for violations which occurred during the term of this Lease.
6. TERMINATION OF LEASE. This Lease shall automatically renew upon expiration
from year-to-year, upon the same terms and conditions, unless either parry gives due and timely
written notice to the other of an election not to renew this Lease. If renewed, the tenancy shall
terminate on March 1 of the year following,provided that the tenancy shall not continue because of
an absence of notice in the event there is a default in the performance of this Lease. All notices of
termination of this Lease shall be as provided by law.
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.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.
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.
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.
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f10.REPAIRS. Tenant shall maintain the fences on the leased premises in good and proper
' repair. Tenant shall furnish necessary materials for repairs that Tenant 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.
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,and then only with Landlord's prior written consent,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.
12. 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 Real Estate.
13. NO AGENCY. Tenant is not an agent of the Landlord.
14. 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.
15. 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.
16. 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.
17. 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 6,which shall be
governed by the Code of Iowa.
18. ASSIGNMENT. Tenant shall not assign this Lease or sublet the Real Estate or any
portion thereof without prior written authorization of Landlord.
19. ADDITIONAL PROVISIONS. Landlord's only expense with respect to this Lease
shall be its share of real estates taxes (presently estimated to be $ per year). All other
expenses associated with the farming operation shall be the sole expense of Tenant.
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DATED: :r < " - ,2014.
MCFADDEN PROPERTIES,L.L.P.,
an Iowa limited liability partnership,
Landlord
By
adden,Managiug Partner
By _
J ice Do erty, 1 g Partner
By
Jc�a Gross,Man -ng arTner
r
� A
ohn MCF en,Tenant
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EXHIBIT B
EASEMENT
Book 21, Page 151 of the Records of the Dubuque County Recorder
4
THE CITY OF
DUB 7E MEMORANDUM
Masterpiece on the Mississippi
TRACEY STECKLEIN
PARALEGAL
MEMO
To: Kevin Firnstahl
City Clerk
o
DATE: September 18, 2015
RE: McFadden Properties, L.L.P. and McFadden Family Partnership, L.L.P.
Kevin:
Attached are the following documents which were recorded on September 11, 2015:
McFadden Family Partnership, L.L.P.:
1. Copy of Plat of Survey recorded as Instrument no. 2015-00011778;
2. Original Warranty Deed and Resolution no. 244-15 Approving an Offer to
Buy, recorded as Instrument no. 2015-00011779;
3. Original Groundwater Hazard Statement recorded as Instrument no. 2015-
00001598; and
4. Original Affidavit Of Possession recorded as Instrument no. 2015-
00011780.
McFadden Properties, L.L.P.:
1. Copy of Plat of Survey recorded as Instrument no. 2015-00011775;
2. Original Warranty Deed and Resolution no. 258-15 Approving an Offer to
Buy, recorded as Instrument no. 2015-00011776;
3. Original Groundwater Hazard Statement recorded as Instrument no. 2015-
00001597; and
4. Original Affidavit Of Possession recorded as Instrument no. 2015-
00011777.
A Resolution Accepting the Deed for each of the above -referenced property acquisitions
is on the September 21, 2015 City Council agenda. Therefore, once those resolutions
have been approved by the City Council, we will have to take those resolutions and the
respective above -referenced original Warranty Deeds and have them re-recorded at the
Dubuque County Recorder's Office.
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563) 583-4113 / FAX (563) 583-1040 / EMAIL tsteckle@cityofdubuque.org
I have already provided copies of these documents to the Economic Development
Department. The City Attorney's Office will retain a copy of the above -referenced
documents for our file.
Thanks. O
F:\USERS\tsteckle\Lindahl\McFadden Properties - Industrial Park Property Acquisitions\Firnstahl_OriginalRecordedDocuments_091815.doc
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL tsteckle@cityofdubuque.org
2015 Industrial Park Land Purchases
Property
Total Acres
Total Price
Price per
Acre
Developable
Acres
Yield
Percentage
Purchase
Price per
Developable
Acre
Development
Costs
Combined
Purchase
Price and
Development
Costs
Purchase
Price and
Development
Cost per
Developable
Acre
Graf Farm
166.3
$2,078,570
$12,500
80
48%
$25,982
$7,400,000
$9,478,570
$118,482
McFadden
Family
Partnership
124/2
$2,120,240
$17,000
84
67%
$25,241
$6,000,000
$8,120,240
$96,670
McFadden
Family
Properties,
LLP
36.5
$1,350,500
$37,000
32
88%
$42,188
$1,900,000
$3,250,000
$101,563
Of the approximately 950 acres of industrial land purchased in the 1990s, approximately 150 developable acres remain.