HomeMy WebLinkAboutAmerican Harvest, LLC for Real Property UseCITY OF MERIDIAN
AGREEMENT OF LEASE
THIS AGREEMENT made and entered into by and between the City of Meridian, an Idaho
Municipal Corporation, by and through its Parks & Recreation Department, hereinafter called
"Lessor", and American Harvest LLC, hereinafter called "Lessee".
L LEASE:
Lessor, for and in consideration of the rents, covenants, conditions and agreements
hereinafter contained and agreed to be paid, kept and performed by Lessee, does hereby
lease and demise to Lessee approximately 77 acres of real property located on East Lake
Hazel Road in Ada County, Idaho Identified as Parcel #S 1405212410 and depicted on
Exhibit "A" attached hereto and incorporated herein, hereinafter referred to as "the
property" or "lease premises: '
II. TERM OF LEASE:
The term of this lease shall be deemed to have commenced on January 1, 2010 and the
initial term shall terminate on December 31, 2010. This lease shall automatically be
renewed from year to yeaz thereafter unless written notice of termination is given by
either party to the other at least 30 days before the expiration of this lease or any renewal.
IIL RENTAL:
A. Lessee shall pay to Lessor a total annual Lesser payment of $3,850 for the entire
premises. The annual rent shall be due in full by November 15th each year. The
annual rent and payment schedule shall be renegotiated if this Lease Agreement is
renewed or extended beyond the initial lease term.
B. Lessor shall pay the regulaz irrigation assessments and property taxes (if any) when
due. Lessor will also promptly authorize excess water delivery if requested by Lessee.
Lessee shall pay any water-use overage costs, if applicable. Power and other utilities
will be paid by Lessee.
IV. DITCHES:
Lessee agrees to clean and maintain in good repair or a condition similaz to the outset of
the lease, normal weaz and teaz excepted, all ditches, laterals and drains situated upon the
leased Premises in order that the maximum water benefit maybe obtained and utilized.
V. U5E OF CHEMICALS AND HAZARDOUS SUBSTANCES:
A. Lessee shall not use, store, or dispose of any hazardous or toxic substances as defined
by applicable Federal or State laws and regulations upon the Property without prior
written notice to Lessor. Said notice shall identify the substance to be used, the area in
which the substance is to be used, the manner in which the substance is to be stored
and applied, and plans to dispose of any excess. Lessor has the option of refusing to
consent to such use, storage or disposal of toxic substances. Lessee's failure to
comply with such a decision shall constitute a default by Lessee. All hazardous or
toxic materials shall be used strictly in accordance with all applicable laws, rules and
ordinances and Lessee shall not allow any hazardous or toxic substance into the air,
ground or water except when allowed by said laws and regulations. Lessee shall also
not cause or knowingly suffer any "prohibited conduct" (as that term is defined by
applicable Federal or State law now existing or as revised or amended hereafter) upon
the Property. Lessee shall indemnify and hold Lessor harmless from any claim,
liability, loss, cost or expense (including but without limitation, attorney's fees)
resulting from hazardous or toxic substances placed or used on the property by
Lessee.
B. Lessor hereby consents to Lessee's use of chemicals and fertilizers customarily used
in farming and ranching operations in this area on the condition that such chemicals
and fertilizers are used and stored properly and in accordance with law. Lessor has the
right to inspect the property, after adequate notice to Lessee, to determine if Lessee is
properly using, storing, and disposing of chemicals and other hazardous substances.
Other than chemicals and fertilizers customarily used in farming and ranching operations
in this area, Lessor disclaims any knowledge or information regarding the existence of
toxic or hazardous substances on the property.
VI. USE OF PREMISES:
Lessee's use and occupancy of the leased premises shall be limited to farming operations.
Farming operation shall include the pasturing of cattle and/or horses. Lessee shall not use
or permit the use of the premises for any other purpose without the express written
consent of the Lessor. Lessee further agrees that they will not commit, permit nor suffer
any damage to or waste upon the premises or any of the improvements or appurtenances
situated or placed thereon by Lessrn, or on Lessor's behalf. Lessee shall not permit nor
suffer any lien, judgment or encumbrance to be entered against or filed upon the premises
or any improvements or fixtures thereon, and they hereby covenant to satisfy any such
lien, judgment or encumbrance at their sole and separate expense, and in all respects fully
to indemnify Lessor against all damages, legal costs and charges, including attorney's fees
reasonably incurred, in any suit involving any liens, claims, judgments or encumbrances
cause or suffered by Lessee with respect to the premises or any part thereof.
VII. LESSEE OBLIGATIONS:
A. Lessee shall provide and maintain all farming equipment necessary for conducting
Lessee's farming operation pursuant to this Lease.
B. The Lessee shall be solely responsible for all expenses incurred in the Lessee's
harvesting, storage and ixansportation of crops removed from the premises including
LAKE HAZEL LEASE AGREEn~mv1', 2
damages caused by acts of God or unforeseen weather occurrences.
C. Lessee shall be responsible for weed control on leased property.
D. Any property and/or equipment purchased by tine Lessee for the purpose of this lease
shall remain the property of the Lessee.
E. Lessee shall file water use reports with the applicable irrigation district..
VIII. INDEIVIl~IIFICATION AND INSURANCE:
Lessee shall be solely responsible for any farm and personal property placed or used by
them upon the premises. It is understood and agreed that Lessor makes no warranty or
promise as to the condition, safety, usefulness or habitability of the premises and Lessee
accept the premises as is. Lessee further specifically indemnifies Lessor and holds Lessor
harmless from any loss, liability, claim or action for damages or injury to Lessee, or
personal property, or their employees, agents, guests or business invitees arising out of or
resulting from the condition of the premises or any lack of maintenance or repair thereon.
It is further understood and agreed the Lessee shall not be considered agents of Lessor in
any manner or for any purpose whatsoever in their use and occupancy of the premises,
and Lessee hereby agrees to indemnify and hold Lessor harmless from any loss, liability,
claim or action from damages or injuries to persons or property in any way arising out of
or resulting from the use and occupancy of the leased premises by Lessee, its agents,
employees, guests or business invitees. If any claim, suit or action is filed against Lessor
for any loss or claim described in this paragraph, Lessee, at Lessor's option shall defend
Lessor and assume all costs, including attorney's fees, associated with the defense or
resolution thereof, or indemnity Lessor for all such costs and fees incurred by Lessor in
the defense or resolution thereof.
In the event Lessee hires employees to work on premises, workers must be covered by
worker's compensation insurance. A certificate of insurance shall be provided to Lessor.
Lessee shall indemnify and save and hold harmless Lessor from and for any and all
losses, claims, actions, judgments for damages, or injury to persons or property and losses
and expenses caused or incurred by Lessee, its servants, agents employees, guests, and
business invitees, and not caused by or arising out of the tortious conduct of Lessor or its
employees. In addition, Lessce shall maintain, and specifically agrees that it will
maintain, throughout the term of this Agreement, liability insurance, in which the Lessor
shall be named an additional insured in the minimum amount as speed in the Idaho
Tort Claims Act set forth in Title 6, Chapter 9 of the Idaho Code. The limits of insurance
shall not be deemed a limitation of the covenants to indemnify and save and hold
harmless Lessor; and if Lessor becomes liable for an amount in excess of the insurance
limits, herein provided, Lessee covenants and agrees to indemnify and save and hold
harmless Lessor from and for all such losses, claims, actions, or judgments for damages
or liability to persons or property. Lessee shall provide Lessor with a Certificate of
Insurance, or other proof of insurance evidencing Lessee compliance with the
requirements of this pazagraph and file such proof of ins~~ra_nce with the Lessor. In the
LAxE HAS.. LEASE AGxE~mv'r, 3
event the insurance minimums are changed, Lessee shall immediately submit proof of
compliance with the changed limits. Evidence of all insurance shall be submitted to
Meridian City Parks & Recreation Department, 33 East Broadway, Meridian, ID 83642.
IX. SURRENDER OF POSSESSION:
Lessee agrees to surrender possession and occupancy of the premises peaceably at the
termination of the lease and any renewal or extension.
X. DEFAULT AND CANCELLATION:
A. If Lessee is in breach or default of any of the terms, covenants or conditions of this
Agreement and fail or refuse to cure such breach or default within ten (10) days of
written notice thereof, this Agreement, and all rights of Lessee in and to the leased
property, at Lessor's option, may ~ deemed r . inarP and forfeited without further
notice or demand.
B. In the event of any default or breach of this Agreement and Lessee's failure or refusal
to cure, as hereinbefore provided, Lessor may, upon three (3) days notice, enter into
and upon the premises, take possession thereof and expel Lessee therefrom, with or
without process of law and without being guilty of trespass, and without prejudice to
any and all other rights and remedies Lessor may have. In the event of re-entry by
Lessor, Lessee shall be liable for any damages suffered by Lessor, its agents or
employees, and any costs, including legal expenses and attorneys' fees, incurred by
Lessor in recovering the premises.
C. Lessor's waiver on one or more occasion of any breach or default of any term,
covenant or condition of this Agreement, including but not limited to Lessor's
acceptance, with or without demand, or any rental payments after the same have
become delinquent, shall not be construed as a waiver of any subsequent breach or
default of the same or a different term, covenant ar condition, nor shall such waiver
operate to prejudice, waive, or affect any right or remedy Lessor may have under this
Agreement with respect to such subsequent default or beach by Lessee.
D. Lessor's acceptance of rental from Lessee after Lessee's default or breach or after the
cancellation, termination or expiration of this Agreement, or any extension thereof,
shall not operate to reinstate, renew, or extend the term of this Agreement or affect
any notice to Lessee or operate as a waiver of Lessor's right to enforce the payment of
rental then due or thereafter falling due.
E. Lessee shall be liable to Lessor for all damages and costs, including legal expenses
and attorneys' fees, suffered or incurred by Lessor in the enforcement of any of the
terms, covenants or conditions of this Agreement.
XL QUIET ENJOYMENT:
Lessor hereby agrees that in consideration of Lessee performance of the terms and
LAKE HAZEL, LEASE ACREE1vmVT, 4
conditions of this Agreement, Lessee may peaceably and quietly have and enjoy the said
premises for the duration of this Agreement.
XII. ASSIGNMENT, SUBLEASE OR TRANSFER:
Lessee shall not assign, sublet or transfer the leased. premises, or any portion thereof, or
cause or suffer any alterations thereto, other than as specified in this Agreement, without
the express written consent of Lessor.
XIII. NOTICES:
All notices to be given with respect to this Agreement shall be in writing addressed as
follows:
TO Lessee: TO Lessor:
American Harvest LLC City of Meridian
c% James A. Lowe Director, Parks & Recreation Department
1820 N. Firebrick Dr 33 East Broadway
Kuna, ID 83634 Meridian, ID 83642
Notice shall be either delivered or sent by registered or certified mail, postage prepaid,
return receipt requested to the party to be notified at the address specified above, or such
other address as either party may designate in writing. Every notice shall be deemed to
have been given at the time it is deposited in the United States mails, or upon delivery to
the party above specified, or their agent or legal representative.
XIV. ALTERATIONS:
Lessee shall not make, or permit to be made, alterations on or to the premises without
fast obtaining City's written consent. Additions to, or alterations of, the premises shall
become at once a part of the real property and belong to City. Lessee shall keep the
premises free from any liens arising out of any work performed for, materials furnished
to, or obligations incurred by Lessee.
XV. LESSEE'S INSPECTION OF PREMISES AND CONDITION UPON
TERMINATION:
Lessee acknowledges that Lessee has inspected the premises and does hereby accept the
premises as being in good and satisfactory order, condition, and repair. Lessee agrees that
upon termination of this Lease Agreement for any reason, including the expiration of its
terms, Lessee shall surrender the premises to City in the same good condition as received,
reasonable wear and tear, damage by fire, or act of God excepted
XVI. INSPECTION:
Lessee shall permit City and City's contractors and employees, at any time, to enter the
premises for the purposes of inspection for compliance with the terms of this Lease
LnKE HAZE[, T .Fe ~ ACRFIIVVIENNT, 5
Agreement and for the exercise of City's rights, the posting of notices, and for all other
lawful purposes. The parties shall supply each other with keys and any other instruments
necessary to allow mutual entry on the premises. Lessor shall make reasonable effort to
contact Lessee prior to entry.
XVII. APPROVAL BY CITY COUNCIL:
This lease shall not be effective for any purpose whatsoever until it is approved by the
resolution of the City Council and executed by the Mayor. By the granting of this lease,
the City Council is not obligating itself, the City of Meridian, its officers or agents, with
regard to any other discretionary action relating to development or operation of said
premises. Such discretionary actions include, but are not limited to, the granting or
rezonings, variances, use permits, environmental clearances, or any other governmental
agency approval that is required by law.
XVIII. POSSESSION:
If City, for any reason whatsoever, cannot deliver possession of the said premises to
Lessee at the commencement of the said term, as hereinbefore specified, this lease shall
not be void or voidable, nor shall City be liable to Lessee for any loss or damage resulting
therefrom; but in that event, there shall be proportionate deduction of rent covering the
period between the commencement of the said term and the time when City can deliver
possession.
XIIf. BINDING EFFECT:
This Agreement and the terms and conditions hereof shall apply to and aze binding upon
the heirs, legal representative, successors and assigns of the parties. A
WITNESS WHEREOF, the parties hereto have subscribed their names this ~ day of
2010.
For Meridian City
Tammy d eerd, Mayor
For American Harvest LLC
Jan A. Lowe
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T .AKF? HA7.Q, I~1SE AGREIIV~IVT, 6~~//~~~ ~,+ 1 "(/1~Y `````~~~•
STATE OF IDAHO )
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County of Ada )
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On this a 3 P day of 1~--~ D~~rrJn 2010, before me, a notary public in
and for said state, personally appeared Tammy de Weerd and Jaycee L. Holman, known to me to
be the Mayor and City Clerk of Meridian City, Idaho, who executed the within instrument, and
acknowledged to me that Meridian City executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year first above written.
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STATE OF IDAHO )
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County of Ada )
On this ~Yt~day of 2010, before me, a notary public in and for state, personally
appeared James A. Lowe known to me to be the person who executed the within instrument on
behalf of American Harvest L,L.C, and acknowledged to me that they executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and
year first above written.
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