Farm Lease Agmt with American HarvestLEASE AGREEMENT WITH AMERICAN HARVEST, LLC
This LEASE AGREEMENT WITH AMERICAN HARVEST, LLC is made and entered
into this LLP day of October, 2012 ("Effective Date"), by and between the City of Meridian, a
municipal corporation organized under the laws of the State of Idaho (hereinafter "City"), and
American Harvest, LLC, a limited liability company organized under the laws of the State of
Idaho (hereinafter "Lessee").
WHEREAS, as depicted on Exhibit A hereto, the City owns 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 (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 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 Lessee for crop farming serves the public interest as the most efficient method
of controlling weeds, pests, and dust;
WHEREAS, the City Council of the City of Meridian hereby finds that 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 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. Lease granted. City, 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 Lease Premises to Lessee.
II. Use of Lease Premises. Lessee's use and occupancy of the leased premises shall be
limited to farming operations. "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 without the express written consent of the City.
III. Term of lease. The term of this lease shall be deemed to have commenced on January
1, 2013 and the initial term shall terminate at 11:59 p.m. on December 31, 2016, unless
earlier terminated by either Party by the method established herein. This lease shall
automatically be renewed from year to year thereafter unless written notice of termination
is given by either party to the other at least thirty (30) days before the expiration of the
LEASE AGREEMENT WITH AMERICAN HARVEST FOR FARMING LAKE HAZEL PROPERTY PAGE 1 OF 9
initial lease term or any renewal thereof.
ISI. Rental payment. Lessee shall pay to City a total annual lease payment for the entire
Lease Premises as set forth in Lessee's proposal, a copy of which is attached hereto
as Exhibit B. The annual rent shall be due in full by November 15 each year. In the
event that the current year crop is not ready for harvest by November 15111, payment of
any portion of crop proceeds due the City may be delayed until 30 days after harvest is
complete. Unless either party, between November 15 and December 31 in the last year
of the initial term and each year thereafter;, 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. Cf the parties agree upon a rate differing frorn 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. Rights and responsibilities of Lessee. With regard to Lessee's use and occupancy of
the Lease Premises under this Agreement, Lessee shall he responsible for each and all of
the following.
A. I1 arining operations. Lessee shall be responsible far all costs, activities, and
responsibilities associated with planting, maintaining, and harvesting crops and
maintaining livestock on Lease Premises. Lessee shall be entitled to keep the
proceeds, if any, of the crop(s) planted and harvested by Lessee and livestock
maintained by Lessee on Lease Premises, Lessee shall be solely responsible for any
and all expenses incurred in the Lessee's planting, maintaining, harvesting, storage
and transportation of crops and livestock removed ti-orn (lie Lease Premises including,
but not limited to, darnages caused by acts of God, acts of nature, and/or weather.
B. Need and pest control. Lessee shall be responsible for weed, pest, insect, and
vermin control on Lease Premises.
C. Ditches and drains. Lessee agrees to clean and maintain in good repair and
condition, normal wear and tear excepted, all ditches, laterals and drains situated
upon the Lease Premises in order that the maximum water benefit may be obtained
and utilized.
D. Alterations; waste. Lessee shall not make, or permit to be made, alterations on or
to Lease Premises without first obtaining City's written consent. Any additions to,
or alterations of, Lease Premises shall become at once a part of the real property and
shall belong to City. Lessee shall 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 or on behalf of City or City's agents or invitees.
E. Liens. Lessee shall keep Lease Premises free from any liens arising out of any work
performed for, materials furnished to, or obligations incurred by Lessee, Lessee shall
not permit nor suffer any lien, judgment or encumbrance to be entered against or
LEASE AGRLEA4ENT WTTH AMERICAN HARVES-1- FOR FARMING L.AKEHAZEL PROPERTY PAGE 2 oC; 9
tiled upon Lease Premises or any improvements or fixtures thcreon. Lessee shall be
permitted to use crops as collateral to secure a farm operating loarr. Lessee hereby
covenants to satisfy any such lien, judgment or encumbrance at Lessee's sole and
separate expense, and in all respects fully to indemnify City 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.
F. Equipment. Lessee shall provide and maintain all farming and irrigation equipment
necessary for conducting Lessee's farming operation pursuant to this Lease. Any
property and/or equipment purchased or used by the Lessee for the purpose of this
lease shall remain the property of the Lessee. Such property and/or equipment may
be stored at the Lease Premises for the terns of this Agreement so long as such storage
complies with all applicable laws, regulations, and policies. Lessee shall move or
remove such property and/or equipment within twenty-farrr (24) hours of City's
request to do so. Lessee shall he solely responsible for any personal property and
equipment stored or used by Lessee upon the Lease Premises.
G. Water use. Lessee shall file water use reports as required and/or requested by the
irrigation district(s) serving the Lease Premises. City shall promptly authorize excess
water delivery if requested by Lessee. Lcssce shall pay any water use overage costs,
if applicable,
14. Utilities. Lessee shall pay for any power- or other utilities utilized or provided at
Lease Premises.
Chemicals; hazardous substances. Lessee shall not use, store, or dispose of any
hazardous or toxic substances as defined by applicable Federal or State laws and
regulations upon Lease Premises without prior written notice to City. Said notice
shall identify the substance to be used, the area ui 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. City has thc'option of refusing to consent to such use, storage or
disposal of toxic substances. Lessee's failure to comply with such a decision small
constitute a default by Lessee. All hazard-ous or toxic materials shall be used strictly
in accordance with all applicable laws, rules and ordinances. Lessee shall not allow
any hazardous or toxic substance into the air, ground or water except insofar as
allowed by said laws and regulations. Lessee shall also not cause or knowingly suffer
any prohibited conduct as such term is defined by applicable Federal or State law
upon the Lease Premises. Lessee shall indemnify and hold City 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 Lease Premises by
Lessee. City hereby consents to Lessee's use of chemicals and fertilizers customarily
used in crop farming operations in this area oil the condition that such chemicals and
fertilizers are used and stored properly and in accordance with law. City shall have
the right to inspect Lease Premises to determine if Lessee is properly using, storing,
and disposing of chemicals and other hazardous substances. Other than chemicals
LEASE AGRITNIENT wi'm AMLRrCAN HARVE ST LoR PARN11,W) LAKE HAZEL PROPERTY PALL: 3 of 9
and fertilizers customarily used in farming and ranching operations in this arca, City
disclaims any knowledge or information regarding the existence of toxic or hazardous
substances on the property.
J. Good husbandry. Lessee will utilize the Lease Premises in a manner that will best
conserve the integrity and long-term beneficial use of the Lease Premises,
K. Acceptance as is. Lessee acknowledges that Lessee has inspected the premises and
does hereby accept the premises as being in good and satisfactory order, condition,
and repair. It is understood and agreed that City makes no warranty or promise as
to the condition, safety, usefulness or habitability of the Lease Premises, and Lessee
accept the Lease Premises "as is."
L. Sul -render (if possession. Lessee agrees that upon ternnination or expiration of
this Lease Agreement for any reason, Lessee shall surrender the premiscs to City in
the same good condition as received, reasonable wear and tear, act of God, act of
nature, or damage by weather excepted. Lessee agrees to surrender possession and
occupancy of the premises peaceably at the termination of the lease and any renewal
or extension thereof.
M. Indemnification. Lessee specifically inde€unities City and molds City harmless
from any loss, liability, claim, judgment, or action for damages or injury to Lessee,
to Lessee's personal property or equipment, and to Lessee's employees, agents,
guests or invitees arising out of or resulting from the condition of the Lease Premises
or any lack of maintenance or repair thereon and not caused by or arising out of
tine tortious conduct of City or its employees. Lessee further agrees to indenWnify
and hold City harmless fron€ any loss, liability, claim or action from damages or
i€n,jurics to persons or property in any way arising out of or resulting from the use
and occupancy of the leased premises by Lessee or by Lessee's agents, cTn-1ployces,
guests or business invitees and not caused by or arising out of the tortious conduct
of City or its employees. If any claim, suit or action is filed against City for any loss
or claim described in this paragraph, Lessee, at City's option, shall defend City and
assume all costs, including attorney's fees, associated with the defense or resolution
thereof, or indemnify City for all such costs and fees incurred by City in the defense
or resolution thereof.
N. Liability insurance. Lessee shall maintain, and specifically agrees that Lessee will
maintain throughout the term of this Agreement, liability insurance, in which City
shall be named an additional insured in the minimum amount as specified 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 City; and if City becomes liable for an amount in excess of the
insurance limits herein provided, Lessee covenants and agrees to indemnify and save
and hold harmless City from and for all such losses, claims, actions, or judgments
for damages or liability to persons or property. Lessee shall provide City with a
LL A• L AGRUMENT WTTH AMERICAN HARVEST FOR FARMING LAKE HAZE]. PROPERTY PAM -:4 ol-, 9
certificate of insurance or other proof of insurance evidencing Lessee's compliance
with the requirements of this paragraph. In the event the insurance minimums are
changed, Lessee shall immediately submit proof of compliance with the changed
limits.
O. Worker's compensation insurance. In the event Lessee hires any person to work on
the Lease Premises, any and all workers shall be covered by worker's compensation
insurance. In such event, Lessee shall provide to City a certificate of insurance.
P. Crop insurance. Lessee may; at Lessee's option, maintain crop insurance for crops
planted on Lease Premises. City shall not maintain crop insurance on Lessee's
behalf.
Q. Taxes. Lessee shall be solely responsible for the payoietrt of taxes awed for any
income realized as the result of activities undertaken pursuant or related to this
Agreement..
R. Quiet enjoyment. City hereby agrees that in consideration of Lessee's performance
of the terms and conditions of this Agreement, Lessee may peaceably and quietly
have and enjoy the Lease Premises for the duration of this Agreement.
VI. Rights and responsibilities of City. With regard to Lessee's use and occupancy of the
Lease Premises under this Agreement, City shall be responsible for the following.
A. Assessments; property taxes. City shall pay the regular irrigation district
assessments and property taxes, if any. City shall also promptly attthol-ize excess
water delivery if rcquested by Lessee. Lessee shall reimburse City for any water use
overage costs, if applicable.
B. Right of entry. City and City's contractors, employees, agents, and invitces, shall
be authorized to, at all times, to enter the premises for the purposes of inspection for
compliance with the teens of this Lease Agreement and for the; exercise. of City's
rights hereunder, the posting of notices, and for all other lawful purposes. The parties
shall supply each other with keys and any other instruments neccssaiy to allow
mutual entry onto the Lease Premises,
VII. General provisions.
A. No agency. It is further understood and agreed Lessee shall not be considered all
agent of City in any manner or for any purpose whatsoever in Lessee's use and
occupancy of the Lease Premises.
B. Breach; cure; termination. If Lessee is in. breach or default of any of the terms,
covenants or conditions of this Agreement and Lessee fails or refuses to cure such
breach or default within ten (10) days ofwri.tten notice thereof, this Agreement,
and all rights of Lessee in and to Lease Premises, at City's option, may be deemed
LEASE AGREENIFNT WTTH A v1ER1CAN 1JARVEST roll F,m\ 1N(i LAKL HAZEL PROPERTY PAGe 5 01`9
terminated and forfeited without further notice or demand. In the event of any default
or breach of this Agreement and Lessee's failure or refusal to cure as hereinbefore
provided, City 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 City may have. In the event of termination of this Agreement, Lessee
forfeit any right to harvest crops planted and any right to the proceeds thereof. Lessee
shall be liable for any damages and any costs, including legal expenses and attorneys'
fees, incurred by City in recovering the Lease Premises hereunder.
C. 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.
D. Transfer of property_ if City should sell or otherwise transfer title to Lease
Premises, this Agreement shall be voidable upon transfer of title, at the buyer's
or transferee's option. As may be practicable under the circumstances, City shall
provide written notice to Lessee of City's intent to transfer title.
E. No waiver. City's waiver on one or more occasion of any breach or default of any
term, covenant or condition of this Agreement shall not be construed as a waiver
of any subsequent breach or default of the same ora different term, covenant or
condition, nor shall such waiver operate to prejudice, waive, or affect any right or
remedy City may have under this Agreement with respect to such subsequent default
or breach by Lessee.
F. No obligation. By the granting of this lease, City does not in any way bar, obligate,
limit, or convey any warranty with regard to any action relating to development or
operation of said premises, includnig, but not limited to, annexation, rezone, variance,
permitting, environmental clearance, or any other action allowed or required by law
or conveyed by City Council.
G. Attorney fees. Lessee shall be liable to City for all damages and costs, including
legal expenses and attorneys` fees, suffered or incurred by City in the enforcement of
any of the terms, covenants or conditions of this Agreement.
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 ill
this Agreement, without the express written consent of City.
1. Binding on successors. This Agreement and all terms and conditions hereof shall
apply to and are binding upoil the heir's, legal representative, successors and assigns
of the Parties_
L,LASL' AGRF.LNIENT Wrl'FT AMERTCAN 1-1ARVEST FOR FARMING LAKF HAM, PROPLRTY PAGE. 6 of 9
J. Independent contractor. In all matters pertaining to this Agreement, Lessee shall be
acting as an independent contractor, and neither Lessee nor any officer, employee or
agent of Lessee shall be deemed an employee of City. Lessee shall have no authority
or responsibility to exercise any rights or power vested in City. The selection and
designation of the personnel of City in the performance of this agreement shall be
made by City.
K. Notices. All notices to be provided under this Agreement shall be in writing and
addressed as follows:
Lessee: American Harvest LLC
c/o James A. Lowe
PO Box 445
Meridian, ID 83680
City: City of Meridian
Director, Parks & Recreation Department
33 East Broadway
Meridian, Idaho 83642
Notices shall be in writing and either personally delivered or sent by registered
or certified U.S. 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. Notice shall be deemed to have been given upon deposit in the
U.S. mail, or upon personal delivery to the party above specified.
L. Choice of law. This Agreement was negotiated in Idaho, is entered into and is
intended to be performed in the State of Idaho. The Parties agree that the laws of
Idaho shall govern the interpretation of this Agreement.
M. City Council approval required. 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.
N. Entire agreement. This Agreement contains the entire agreement of the parties and
supersedes any and all other agreements, leases, or understandings, oral or written,
whether previous to the execution hereof or contemporaneous herewith.
O. Exhibits. 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.
IN WITNESS WHEREOF, the parties shall cause this Agreement to be executed by
their duly authorized officers to be effective as of the day and year first above written.
LESSEE:
4A��= j 4-e,-� STATE t
ss:
Jame A. Lowe County of _ )
LEASE AGREEMENT WITH AMERICAN HARVEST FOR FARMING LAKE HAZEL, PROPERTY PAGE 7 OF 9
CITY OF MERIDIAN:
M
I HEREBY CERTIFY that on this I -4, day of Oct, 2012,
before the undersigned, a Notary Public in the State of Idaho,
personally appeared James A. Lowe, proven to me to be the
person who executed the said instrument, and acknowledged
to me that he 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.
AE( s �U�L (H
Notary Pub or Idaho
Residing at CSI Idaho
My Commission Expires: 'a ^
Attest:
A
Tammy de eerd, Mayor -� p �* city \f7aycee
E IDIAN�
y IDAHO
SEAL
n�yrF� n� rd r�T P"Fi.AS�A�����
City Clerk
LEASE AGREEMENT WITH AMERICAN HARVEST FOR FARMING LAKE HAZEL PROPERTY PAGE 8 OF 9
EXHIBIT "A"
LEASF. AGRFF..MF.NT Wrnt AMERICAN HARVEST FOR FARMING SAKE HAZEL PROPERTY PAGE.9 OI" 9
PURCHASING DEPARTMENT
33 East Broadway Ave., Ste 106
Meddlan, ID 83642
Phone: (208) 489-0416
D Fax: (208) 887-4813
—C(Opy
VPS OJEX-Y [IM, -P'K3,-13-10"MA
CONTRACT ',,--,!P EG I F11 (CAT ION -3 FOR
VAI -IM LEASE - SOUTH MERMIAN PROVERIN
PROPOSALS MUST BERECEIVED PRIOR TO 4:00 P.M.
OCTOBER 21_2012
DELIVER TO: CITY OF MERIDIAN, PURCHAsI NG DEPARTMENT
33 EAST BROADWAY AVENUE, STE 106
MERIDIAN, ID 83642
Prepared by: KEITH WATTS
NAME AND ADDRESS OF VENDOR SUBMITTING PROPOSAL
NAME: 4MC91CAN fbvmT, L & C ADDRESS: R9 SaX
DATE., MfvJf�.q -170 636eD
Email:
PAIN Jill
PROPOSAL DOCUMENTS
A - PROPOSAL FORM
In response to the Request for Proposals, the undersigned respondent hereby proposes
to furnish labor, material, travel, professional services, permits, supervision, equipment
and equipment rental and all related expenses, and to perform all work necessary and
required to complete the following project in strict accordance with the terms of this
Request for Proposals and the final lease agreement for the prices specified by the
respondent for:
PROJECT ## PKS-13-10121A
FARM LEASE - SOUTH MERIDIAN PROPERTY
Respondeat certifies that he/she has examined and is fully familiar with all of the
provision of the Request for proposals and any addendum thereto; that he/she is
submitting a proposal in strict accordance with the Instructions to Respondents; and that
he/she has carefully reviewed the accuracy of all attachments to this proposal.
Respondent certifies that he/she has examined the proposal documents thoroughly,
studied and carefully correlated respondent's observations with the proposal
documents, and all other matters which can in any way affect the work or the cost
thereof.
Respondent agrees that this proposal constitutes a firm offer to the City which cannot
be withdrawn by the respondent for sixty (60) calendar days from the date of actual
opening of proposals. If awarded the lease agreement, respondent agrees to execute
and deliver to the City within seven (7) calendar days after receipt of City's Conditional
Notice of Award, the applicable tease agreement form, insurance certificates and
bonds (if required).
f Attached is the Respondent's Experience Statement (Part III, B) which has been
completed by respondent and made a part of this proposal.
Respondent also acknowledges receipt of the following addendum to the Request for
Proposals which addendum have been considered by respondent in submitting this
proposal (if none, state "NONE"):
Addenp-IUM Ne,1 Addendum No. 2 PONc
PLEASE RETURN THIS PAGE WITH YOUR PROPOSAL
Farm Lease —South Merlftn Property 10 of 15
RFP PKS-13-10121a
Submitted by,
RESPONDENT'S BUSINESS NAME (type or print)
4011CRIC/I" 4 Ar-?-Vc�r L.LG
M
(signature in inx)
Date: 0-,14- i , ab r a -
Name: JA?"Es A 2-0zwe
Title:
RESPONDENT'S BUSINESS ADDRESSIPHON E/FAXIE-MAIL
i�'i �Ft�rArr .�C fS36 `�f d
PH
,?v9- 9QP- 47f - (FAX)
Nate: If respondent is a corporation, give State of incorporation; if a partnership or joint
venture, give full names of all partners or joint venturers.
11-e: - .:r C>,41,( e>
PLEASE RETURN THIS FACE WITH YOUR PROPOSAL
Famr Lease — 5outh Meridian Property 13 of 15
RFP PKS-13-14121a
The undersigned declares: that he/she holds the position indicating below as a
corporate. Officer or the owner or a partner in the business entity submitting this
Proposal, that the undersigned: Is informed of all relevant facts surrounding the
preparation and submission of this Proposal, that the undersigned knows and
represents and warrants to the City of Meridian that this Proposal is prepared and
submitted without collusion with any other person, business entity, or corporation with
any interest in this Proposal.
I declare under penalty of perjury that the foregoing is true and correct.
LESSEE/FIRM:, 4MEr-jldr✓
go
TITLE: ma'1 to:K' t e-- a
ADDRESS: +"fid 13 YYS~
DATE: 0'�4 f . 2°/P'-
PLEASiE RETURN THIS PAGE WITH YOUR PROPOSAL
Forrn Lease -south Meridian Property 12 of 15
RPP PKS-13.10121a
PART ill
PROPOSAL DOCUMENTS
13-RESPONDENT`S EXPERIENCE STATEMENT
The respondeat submits as a part of its proposal, the following information as to it's
experience and qualifications:
a. The respondent has been engaged in this business under its present business
name for _ b- - years,
b. Experience in work of a nature similar in type and magnitude to that set forth in
the request for proposal extends over a period of 16- years.
C. List related farting operations and references who can attest to your experience
Please include a sheet with all contact information and details of the operation on
a separate sheet.
Additional Consideration to City;
Blease answer the following questions with as much detail as possible (additional pages
may be added and submitted with your proposal).
I. State below your proposed financial consideration regarding "additional
payments 1 services provided to City by lessee:
1 l 0 e /61C 41;-�p k;,a„ "., f!. h 5 b
2, State below your proposed financial consideration regarding "Percentage of crop
proceeds amount payable to the City,"
i�us� 5e� Ai(, e
3. State below your proposed financial consideration regarding "additional land/site
improvements."
PLEASE RETURN THIS PAGE WITH YOUR PROPOSAL
Farm Least — South Meridian Property 13 of 15
RFP PKGS 13-10121a
4, Please include any additional information you would like to be considered in the
RFP awarding process,
I certify that the above information is true and correct to the best of my knowledge. {
Signed this 1 7-- day of Ot'jbEe-- , �b 12-- at klz�a , y•{cL(n �n
(date) (month) (year) (city, state)
NAME OF RESPONDENT: �1 cti�, � �i _ ��- _ .. V 1 r r4Frt� 144-1-W5 —�L6,:L
,
PLEASE RETURN THIS PAGE WITH YOUR PROPOSAL
Farm Lease --South Meridian Property 14 of 15
PFP PKS-13-10121a
Part Ill
13 -RESPONDENT'S EXPERIENCE STATEMENT
c. Related farming operations: Currently lease and farm the following properties:
a. Idaho Elks Rehabilitation Hospital, 52 acres near Overland & Eagle Roads (since 2010)
b. Brighton Investments, 67 acres near lake Hazel & Meridian Roads (since 2009)
c. Church of Jesus Christ of Latter -Day Saints, 26 acres near Meridian and Columbia Roads
(since 2006)
d. City of Meridian, 77 acres on Lake Hazel. (since 2009)
1 (Jim Lowe) worked as the farm foreman for Locust Grove Farms in 2007 and 2008 and was
responsible for day-to-day farming operations on this property (then owned by Greg Johnson or
his companies) as well as the adjacent properties. In 20091 1 (American Harvest, LLC) directly
leased this property from Greg Johnson. When the City acquired the property, I continued as
lessee. I am very familiar with the property and the best farming practices for this particular
piece of land.
References: Greg Johnson 205-989-9505 (Prior employer, prior landlord)
Gale Maslonka 208-860-9215 (Custom Harvester and respected farmer)
Richard Durrant 205-941-3241 (Commodity and seed dealer, farmer)
Additional Consideration to City:
1, "Additional payments / services provided to City"
American Harvest proposes to pay $56 per acre, per season to the City. This payment is in
addition to $50 per acre, per season toward the water assessment (specified in ATTACHMENT
A). This amounts to a total of $106 per acre, per season base rent. American Harvest will also
pay the City any excess water charges incurred.
2. "Percentage of crop proceeds amount payable to the City"
In addition to the base rent, American Harvest proposes to pay 8% of crop proceeds to the City.
This will allow the City to benefit from the upside of strong markets without exposing the lessee
to an inordinate amount of risk in the event of lower prices.
Sample rent results based on conservative estimates:
Dry Corn
Yield; 5 ton / acre
Price: $260 / ton
Crop Share: $104 / acre
Base rent: $106 / acre
Total Payments to City: $210 /acre
Wheat
Yield: 90 bushel / acre
Price: $7.00 / bushel
Crop Share: $50.40 / acre
Base Rent: $106 / acre
Total Payments to City: $x.56.40 /acre
I sell all crops on the open market and do not consume any internally, prodijcing a paper trail
with which to calculate the crop share payable to the City.
3. "Additional land /site improvements"
American Harvest proposes to perform ongoing maintenance on the farm property as a
responsible steward of the land. This includes regular repairs on ditches as well as continuous
removal of rocks that surface during tillage. American Harvest will responsibly manage soil
fertility. The farm functions well as is ---any necessary improvements will be presented for
approval as needed.
4. Additional Information
The specifics outlined in this proposal are in addition to the base terms identified in Attachment
A regarding: Crop Farming, Weed and Pest Control, Ditches and Drains, Equipment, and
Irrigation Water and Irrigation Tax.
This piece of property has been an integral part of my farming operation for several years,
including prior to the City's ownership. During that time, I have managed it in the best interests
of the Property and in the best interests of the City.
0 1 have worked to improve the fertility of the soil, and will continue to do so, In 2012
alone, I invested $22,879 ($297 / acre) in soil amendments and fertilizers (including
nutrients stabilized to remain available in the soil). A significant portion of this
investment remains available for future crops and long-term soil fertility. I have not—
and will not --manage the property to mine the resources on a short-term basis.
B i have defended the City's interests in any question that arises. For instance, when the
City was approached with public requests to hunt the property, I communicated the
potential complications to the City attorney and those requests have been denied.
I have been involved in agriculture for my whole life and have been farming in the Meridian /
Kuna area since I moved here in 2006. 1 hold a Bachelors of Science degree in Agribusiness from
Utah State University and am a 2011 graduate of Leadership Idaho Agriculture. I recognize the
trust a landlord places in a tenant and I endeavor to perform in a manner worthy of that trust.
Thank you for your consideration. I hope to be able to continue as the farmer for this piece of
property.
Sincerely,
Jr
f �
Jim Lowe /
American Harvest, LLC
208-921-2326 cell