15-1094 Approving First Amendment to Lease Agreement with American Harvest for Sublease with the Turf Farm for Property on Lake HazelCITY OF MERIDIAN RESOLUTION NO. 15 -
BY THE CITY COUNCIL: BIRD, BORTON, CAVENER, MILAM, ROUNTREE, ZAREMBA
A RESOLUTION APPROVING FIRST AMENDMENT TO LEASE AGREEMENT WITH
AMERICAN HARVEST, LLC AND AUTHORIZATION FOR SUBLEASE WITH THE TURF
COMPANY FOR LAND OWNED BY CITY AND LOCATED ON LAKE HAZEL ROAD, IN ADA
COUNTY IDAHO; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AND ATTEST
SAID AGREEMENT ON BEHALF OF THE CITY OF MERIDIAN; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City owns real property located on Lake Hazel Road, Ada County, Idaho, identified as
Parcel no. S 1405212410, which is currently unused by City (hereinafter "Lease Premises");
WHEREAS, City is authorized by Idaho Code section 50-1401 to manage real property owned by the
City in ways which the judgment of the city council deems to be in the public interest;
WHEREAS, the City Council of the City of Meridian hereby finds that the lease of the Lease Premises
to James Lowe for turf farming and sporting events serves the public interest as the most efficient method of
controlling weeds, pests, and dust and provides and supports recreational facilities and opportunities, including
soccer programming, for members of the Meridian community;
WHEREAS, the City Council of the City of Meridian hereby finds that the Lease Premises are not
otherwise needed for City purposes; and
WHEREAS, pursuant to Idaho Code section 50-1407, the Mayor and Council hereby resolve and
authorize the lease of Lease Premises to James Lowe and the sublease of Lease Premises to the Turf Company;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE
CITY OF MERIDIAN, IDAHO AS FOLLOWS:
Section 1. That the terms of the First Amendment To Lease Agreement With American Harvest, LLC
and Authorization for Sublease with the Turf Company, attached hereto and incorporated herein, are just and
equitable, and the same is hereby approved as to both form and content.
Section 2. That the Mayor and City Clerk be, and hereby are, authorized to respectively execute and
attest said instrument for and on behalf of the City of Meridian.
Section 3. That this Resolution shall be in full force and effect immediately upon its adoption and
approval.
ADOPTED by the City Council of the City of Meridian, Idaho, this day of October, 2015.
APPROVED by the Mayor of the Cirt n, Idaho, this day of Oc er, 2015.
G��40 (�pTr�
APPROVED:`$ TEST:
cstyat
E lDfAN*--�1
fT.,, ion H
Mayor Tamm de eerd F SEAL cee V. Holman, City Clerk
�lhr iRG,\S�'�0
RESOLUTION AUTHORIZING FIRST AMENDMENT TO LEASE AGREEMENT
WITH AMERICAN HARVEST, LLC AND AUTHORIZATION FOR SUBLEASE WITH TURF CO. PAGE 1 OF 1
FIRST AMENDMENT TO LEASE AGREEMENT WITH AMERICAN HARVEST, LLC
and AUTHORIZATION FOR SUBLEASE WITH THE TURF COMPANY
This FIRST AMENDMENT TO LEASE AGREEMENT WITH AMERICAN HARVEST,
LLC and AUTHORIZATION FOR SUBLEASE WITH THE TURF COMPANY LLC, dba THE
TURF COMPANY ("First Amendment and Sublease") is made and entered into this .- day of
October, 2015, by and between the City of Meridian, a municipal corporation organized under the
laws of the State of Idaho (hereinafter "City"), American Harvest, LLC, a limited liability company
organized under the laws of the State of Idaho (hereinafter "Lessee"), and Darwin McKay, on
behalf of the Turf Company, an assumed business name of the Turf Company, LLC, a limited
liability corporation organized under the laws of the state of Idaho, whose address is 6100 S. Eagle
Road, Meridian, Idaho (hereinafter "Sublessee").
WHEREAS, on October 16, 2012, City and Lessee entered into a Lease Agreement
("October 16, 2012 Lease Agreement") for real property located on Lake Hazel Road, Ada County,
Idaho, identified as Parcel no. S 1405212410, approximately seventy-seven (77) acres of which is
currently unused by City ("Lease Premises");
WHEREAS, Lessee wishes to use the Lease Premises to grow turf, and seeks to expand the
permitted use of the Lease Premises to include sporting events and activities, in accordance with
Ada County permitting requirements;
WHEREAS, City is authorized by Idaho Code section 50-1401 to manage real property
owned by the City in ways which the City Council deems to be in the public interest;
WHEREAS, the City Council of the City of Meridian hereby finds that the continued lease
of the Lease Premises to Lessee for crop farming serves the public interest as the most efficient
method of controlling weeds, pests, and dust, and expanding the allowed use of the Lease Premises
for sporting events would serve the public interest by providing and supporting recreational
facilities and opportunities, including soccer programming, for members of the Meridian
community;
WHEREAS, the City Council of the City of Meridian hereby finds that Lease Premises are
not otherwise needed for City purposes, though the parties specifically acknowledge that the Lease
Premises are owned by City for the express purpose of developing such land for municipal park use;
and
WHEREAS, pursuant to Idaho Code section 50-1407, the mayor and council hereby resolve
and authorize the lease of Lease Premises to Lessee;
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged and agreed, and in consideration of the mutual promises and
covenants herein contained, and in consideration of the recitals above, which are incorporated
herein, City and City agree as follows:
I. Effective date. The effective date of this First Amendment and Sublease shall be November
16, 2015. Until such date, all provisions of the October 16, 2012 Lease Agreement shall
apply without amendment.
FIRST AMENDMENT TO LEASE AGREEMENT WITH AMERICAN HARVEST
FOR LAKE HAZEL PROPERTY AND AUTHORIZATION TO SUBLEASE PAGE 1 OF 4
II. Section II modified. Section II of the October 16, 2012 Lease Agreement shall read as
follows:
II. Use of Lease Premises. Lessee's use and occupancy of the Lease Premises shall be
limited to farming operations and sporting events held in compliance with any and all Ada
County ordinances and permitting requirements. "Farming operations" shall include crop
farming and pasturing cattle and/or horses. Lessee's use and occupancy shall not include,
except as expressly specified herein, any rights to minerals, water, oil, or other extractable
product. Lessee shall not use or permit the use of the premises for any other purpose other
than farming operations or sporting events without the express written consent of the City.
No sporting events shall be allowed between dusk and 8:00 a.m.
III. New section; section III.S. A new subsection, subsection S, shall be added to section III of
the October 16, 2012 Lease Agreement, to read as follows:
S. County permitting and regulation. Prior to scheduling or allowing any sporting event or
activity on the Lease Premises, Lessee shall obtain any and all required permits from Ada
County for such event or activity, and shall provide copies of any and all County permits to
City upon issuance. Lessee shall comply in all respects with all County permits and any
other applicable law, ordinance, regulation, policy, agreement, or MPR requirement as it
relates to any sporting event held on the Lease Premises.
IV. Section IV modified. Section IV of the October 16, 2012 Lease Agreement shall read as
follows:
IV. Rental payment. Lessee shall pay to City a total annual lease payment of $11,550 for
the entire Lease Premises. The annual lease payment shall be due in full by November 15
each year. Unless either party, between November 15 and December 31, provides to the
other written notification of its desire to renegotiate the rental amount for the following year,
the rate set forth herein shall apply. If the parties agree upon a rate differing from that set
forth herein, such agreement shall be adopted via written addendum to this Agreement. If
neither party notifies the other of a desire to renegotiate, upon renewal of the lease term, the
most recently agreed-upon rate shall apply.
V. Section VII.H. modified. Section VII.H. of the October 16, 2012 Lease Agreement shall
read as follows:
H. No assignment. 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 City. All of the terms, provisions,
covenants and conditions of this Agreement shall inure to the benefit of, and shall be
binding upon, each party and their successors, assigns, legal representatives, heirs,
executors, administrators, or sublessees. This includes, without limitation, provisions
regarding liability insurance and indemnification set forth herein. Policies held by Lessee's
assignor, sublessee or transferee shall name City as an additional insured party, and Lessee
shall provide to City a copy of such policy.
FiRST AMENDMENT TO LEASE AGREEMENT WITH AMERICAN HARVEST
FOR LAKE HAZEL PROPERTY AND AUTHORIZATION TO SUBLEASE PAGE 2 OF 4
VI. Section VII.O. modified. Section VII.O. of the October 16, 2012 Lease Agreement shall
read as follows:
O. Exhibits. Except as to those provisions of Lessee's proposal regarding consideration that
are modified by the First Amendment and Sublease, all exhibits to this Agreement are
incorporated by reference and made a part of hereof as if the exhibits were set forth in their
entirety herein.
VII. New section; section VII.P. A new subsection, subsection P, shall be added to section VII
of the October 16, 2012 Lease Agreement, to read as follows:
P. Severability. If any term of this Agreement is to any extent invalid, illegal, or incapable
of being enforced, such term shall be excluded to the extent of such invalidity, illegality, or
unenforceability; all other terms hereof shall remain in full force and effect.
VIII. Authorization of Sublease. City hereby authorizes the sublease of the Lease Premises to
Sublessee. All terms of the October 16, 2012 Lease Agreement and of this First Amendment
and Sublease shall apply to Lessee's sublease to Sublessee, and are incorporated thereto by
reference, regardless of the form of the sublease agreement between Lessee and Sublessee.
Specifically, without limitation, Sublessee is subject to the following provisions, and Lessee
shall ensure Sublessee's compliance therewith by providing all of the following to the
Director of the Meridian Parks & Recreation Department, by 12:00 p.m. (noon) on November
25, 2015:
A. A copy of the written agreement between Lessee and with Sublessee, which agreement
must include Sublessee's acknowledgement of, and agreement to comply with, each and
all of the terms, provisions, covenants and conditions of the October 16, 2012 Lease
Agreement and First Amendment and Sublease, as well as Sublessee's specific agreement
to indemnify and hold harmless the City of Meridian as set forth in section V.M of the
October 16, 2012 Lease Agreement.
B. A copy of Sublessee's liability insurance, worker's compensation insurance, and crop
insurance policies, as set forth in sections V.N, V.O, and V.P of the October 16, 2012
Lease Agreement. Such policies must be in the amounts listed in those provisions, and
must name the City of Meridian as an additional insured party.
C. Sublessee's contact information for day-to-day communication, as may be necessary.
IX. All other provisions in effect. Except as expressly modified by this First Amendment and
Sublease or other duly executed addenda, all provisions of the October 16, 2012 Lease
Agreement shall remain in full force and effect. No other understanding, whether oral or
written, shall be deemed to enlarge, limit or otherwise affect the operation of the October 16,
2012 Lease Agreement or this amendment thereto.
IN WITNESS WHEREOF, the parties shall cause this First Amendment and Sublease to
be executed by their duly authorized officers, to be effective on the effective date established above.
FIRST AMENDMENT TO LEASE AGREEMENT WITH AMERICAN HARVEST
FOR LAKE HAZEL PROPERTY AND AUTHORIZATION TO SUBLEASE PAGE 3 OF 4
LESSEE:
AME CAN HARVEST, LLC
L__
Jam s A. Lowe, Managing Member
0TZi'
yk = +rte
�UBLI
41 4
OF 1'D —;.®®®
SUBLESSEE:
THE TURF COMPANY, LLC
dba THE TURF COMPANY
LQ _ku t.Q/✓ C -
Darwin McKay, Manal�ll
' ,••••eeeeDey�o.,
01
Noy
ftb
@Ge
,�.
A�O ••••e
CITY OF
Daq0 1 y1 fi)&)(�/
y 4vl,
STATE OF IDAHO
ss;
County of )
I, V t— hereby certify that
on this ay of 20 5, ersonally appeared before me
James A. Lowe, ei g y me first duly sworn, declared that
he is the managing member of American Harvest, LLC, that he
signed the foregoing document as managing member of American
a st, LLC, an at ments contained therein are true.
t
Notary ublic f aho
Residi g at _. °° Idaho
My Commission Expires
STATE OF IDAHO
ss:
County of )
I, E hereby certify that
on this day of , 2�i�e
ersonally appeared before me
weing irst duly sworn, declared that��
he is the managing member of G,that heu�
ned the foregoing document as managing member of 6 mp icap,
LLC nd e statements contained therein are true.
Notar ublic • aho
Res' ' n at b1J, i Idaho
W-6fritls'on Expires:
_f
City of
intra
J� r e H ma , rty Clerk
STATE OF IDAHO ) r TRS°
): ss
County of Ada )
On this U day of October, 2015, before me, a Notary Public, personally appeared Tammy de Weerd and Jaycee L.
Holman, know or identified to me to be the Mayor and Clerk, respectively, of the City of Meridian, who executed the
instrument or the person that executed the instrument of behalf of said City, and acknowledged to me that such City
executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and
year in this certificate first above written. r
01
FIRST AMVDI�ENT TO LEASE AGIW
FOR LAKEOF
I�Q ��Z�►Ai
ease&*
Notary Public o�-rZd�ho
Residing at e -)r i
My Commission Expires:
WITH AMERICAN HARVEST
ZATION TO SUBLEASE
Idaho
PAGE 4 OF 4