Lease Agreement with Carlton Farms for the Borup PropertyLEASE AGREEMENT WITH JESSE CARLTON
dba CARLTON FARMS
This LEASE AGREEMENT WITH is made and entered into this 4 day of December
2012, by and between the City of Meridian, a municipal corporation organized under the laws of the
State of Idaho (hereinafter "City"), and Jesse Carlton, dba Carlton Farms, an individual whose
address is 11826 W. Gambrell Street, Star, Idaho (hereinafter "Lessee").
WHEREAS, as depicted on Exhibit A hereto, the City owns real property located on West
Cherry Lane, Meridian, Ada County, Idaho, identified as Parcel nos. S1204336450, 51204336500,
5120436615, 51204346715, and S1204346850, approximately thirty-eight (38) 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 judgment of 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 Lessee agree as follows:
I. Lease granted. City, for and in consideration of the covenants, conditions and agreements
hereinafter contained and agreed to be 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 Lease Premises shall be limited to
crop farming operations. Lessee's use and occupancy shall not include the pasturing or
presence of cattle, horses, or other livestock or animals; nor shall it 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 purpose other than crop farming without the
express written consent of City.
III.Term of lease and Rental Payment.
A. The term of this lease shall be from the Date of Execution through 11:59 p.m. on
December 31, 2013, 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
LEASE AGREEMENT FOR JESSE CARLTON AT CHERRY LANE PROPERTY PAGE 1 OF 8
least thirty (30) days before the expiration of the initial lease term or any renewal
thereof.
B. Lessee shall pay to City a total annual lease payment for the entire Lease Premises in
the amount of Three Thousand Eight Hundred Dollars ($3,800.00). The annual rent
shall be due in full by November 15 each year. 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. 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.
IV. Rights and responsibilities of Lessee. With regard to Lessee's use and occupancy of the Lease
Premises under this Agreement, Lessee shall be responsible for each and all of the following.
A. Crop farming. Lessee shall be responsible for all costs, activities, and responsibilities
associated with planting, maintaining, and harvesting crops on Lease Premises. Lessee shall
be entitled to keep the proceeds, if any, of the crop(s) planted and harvested 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 removed
from the premises including, but not limited to, damages caused by acts of God, acts of
nature, and/or weather.
B. Weed 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 filed upon
Lease Premises or any improvements or fixtures thereon. Lessee shall be permitted to use
crops as collateral to secure a farm operating loan. 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.
LEASE AGREEMENT FOR JESSE CARLTON AT CHERRY LANE PROPERTY PAGE 2 OF 8
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 term 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-four (24) hours of City's request to do so. Lessee shall be 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. Lessee shall reimburse City for any water use overage costs resulting
from excess delivery, if applicable.
H. Utilities. Lessee shall pay for any power or other utilities utilized or provided at Lease
Premises.
I. Adjoining City property. At various times, though not during the growing season, which
shall be defined as approximately April 15 to approximately September 5 of each year, the
property adjoining Lease Premises shall be utilized by City or City's invitee for rodeo and
other events. At such times, Lessee shall accommodate overflow parking on the Lease
Premises on an as -needed basis. Though City and City's invitee shall make reasonable
efforts to avoid damage to the Lease Premises or any crops or other personal property
thereon, neither City nor City's invitee shall be responsible for any damage. Neither City
nor City's invitee shall utilize Lease Premises for overflow parking during the growing
season without prior written consent from Lessee.
I 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 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. City 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.
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 terra 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 on 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 and fertilizers customarily used in
LEASE AGREEMENT FOR JESSE CARLTON AT CHERRY LANE PROPERTY PAGE 3 OF 8
farming and ranching operations in this area, City disclaims any knowledge or information
regarding the existence of toxic or hazardous substances on the property.
K. 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.
L. 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."
M. Surrender of possession. Lessee agrees that upon termination or expiration of this Lease
Agreement for any reason, Lessee shall surrender the premises 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.
N. Indemnification. Lessee specifically indemnifies City and holds 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 the tortious conduct of
City or its employees. Lessee further agrees to indemnify and hold City 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 or
by Lessee's agents, employees, 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.
O. 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 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.
LEASE AGREEMENT FOR JESSE CARLTON AT CHERRY LANE PROPERTY PAGE 4 OF 8
P. 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.
Q. 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.
R. Taxes. Lessee shall be solely responsible for the payment of taxes owed for any income
realized as the result of activities undertaken pursuant or related to this Agreement.
S. 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.
V. 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. Ground preparation. City shall plane the ground at Lease Premises to prepare the surface
topography for planting. City shall make no guarantee as to the quality or composition of
the soil at Lease Premises. Following the initial ground preparation, Lessee shall be
responsible for any further dirt work or ground preparation that may be required or desired
by Lessee.
B. Siphon tubes. City shall provide forty (40) siphon tubes for use by Lessee for irrigation of
crops at Lease Premises.
C. Ditch preparation. City shall clear the waste ditches at Lease Premises to prepare them for
use by Lessee. Following the initial ditch clearing, Lessee shall be responsible for any
further preparation, cleaning, or maintenance that may be required or desired by Lessee or
required by law or regulation.
D. Assessments; property taxes. City shall pay the regular irrigation district assessments and
property taxes, if any. City shall also promptly authorize excess water delivery if requested
by Lessee. Lessee shall reimburse City for any water use overage costs, if applicable.
E. Weed control. City shall be responsible for weed, pest, insect, and vermin control on City
property not leased to Lessee hereunder.
F. Right of entry. City and City's contractors, employees, agents, and invitees, shall be
authorized to, at all times, to enter the premises for the purposes of inspection for
compliance with the terms 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 necessary to allow mutual entry onto the
Lease Premises.
Vt. General provisions.
LEASE AGREEMENT FOR JESSE CARLTON AT CHERRY LANE PROPERTY PAGE 5 OF 8
A. No agency. It is further understood and agreed Lessee shall not be considered an 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 of written notice thereof, this Agreement, and all
rights of Lessee in and to Lease Premises, at City's option, may be deemed 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 said term, as hereinbefore specified, this
lease shall be voidable, and City shall not be liable to Lessee for any loss or damage
resulting therefrom.
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 or a 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, including, 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 in this
Agreement, without the express written consent of City.
LEASE AGREEMENT FOR JESSE CARLTON AT CHERRY LANE PROPERTY PAGE 6 OF 8
Binding on successors. This Agreement and all terms and conditions hereof shall apply
to and are binding upon the heirs, legal representative, successors and assigns of the
Parties.
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: Jesse Carlton
11826 Gambrell Street
Star, Idaho 83669
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.
SIGNATURES TO FOLLOW ON NEXT PAGE
LEASE AGREEMENT FOR JESSE CARLTON AT CHERRY LANE PROPERTY PAGE 7 OF 8
LESSEE:
e s s e C r ton
CITY OF MERIDIAN:
Tarrimy/de/Weerd, Mayor
STATE OF IDAHO
ss:
County of ) h
I HEREBY CERTIFY that on this '-day of November, 2012,
before the undersigned, a Notary Public in the State of Idaho,
personally appeared Jesse Carlton, 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
ritt
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Notary PublicZur Idaho
Residing at .SD Idaho
My Commission Expires:
Attest:
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LEASE AGREEMENT FOR JESSE CARLTON AT CHERRY LANE PROPERTY PAGE 8 OF 8
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