HomeMy WebLinkAboutDon & Quella Beus - PWRF Agreement for Beus Release of Interest in USBR PropertyC-ity of
4 1 PaSCo ?1
Washington
f�
111
I'
Memo
PUBLIC li 0RKS DEPARTMENT (509) 545-4135
P.U. Boa 293 {525 North 3' Avenue) Pasco. Washington 99301 % www.pasco-«a.gov
To:
Dave Zabell
From:
Steve Wortey
Date:
6.16.2022
Project:
PWRF Phase 3 — AD + RNG
Agreement for Betas Release of Interest in USBR Property
This agreement is for the purpose of Beus releasing interest in the United States Bureau of
Reclamation parcel No. 113090058 in accordance with the listed terms.
Legal has reviewed this Agreement: Z Yes ❑ No ❑ N/A
FRANKLIN COUNTY RECORDING
COVER SHEET
NAME AND RETURN ADDRESS:
City of Pasco
ATTN: Janette Romero
525 N 3rd Ave
Pasco, WA 99301
FORM COMPLETED BY: Janette Romero
PLEASE PRINT OR TYPE INFORMATION:
AFN # 1962462 AGREE
06/21/2022 10:07 AM
9 Page(s) $211.50
Matt Beaton, Auditor
Franklin Co., WA
PHONE # 509-543-5738
DOCUMENT TITLE(S) (or transaction contained therein)
1. PWRF Agreement for Beus Release of Interest in USBR Property
2.
3.
GRANTOR(S) (Last name, first name, middle name/initials):
1. Don and Qualle Beus
2.
3.
4.
Additional names on page of document
GRANTEE(S) (Last name, first name, middle name/initials):
1. City of Pasco
2.
3.
4.
❑ Additional names on page of document
LEGAL DESCRIPTION (Abbreviated: ie.lot, block, plat or section, township, range)
Lots 3 & 4 & N2SW4 4 -9-30
❑ Additional legal is on page of document
AUDITOR'S REFERENCE NUMBER(S)
ASSESSOR'S PROPERTY TAX PARCEL NUMBER
4r
113090058
❑ Additional parcel numbers on page of document
The Auditor/Recorder will rely on the information provided on this form. The staff will not read the
document to verify the accuracy or completeness of the indexing information
EMERGENCY NONSTANDARD REQUEST
I am requesting an emergency nonstandard recording for an additional fee of $50.00 as provided in
RCW 36.18.010. I understand that the recording processing requirements may cover up or otherwise
obscure some part of the text of the original document.
Signature Date
FILED FOR RECORD AT REQUEST OF:
City of Pasco, Washington
WHEN RECORDED RETURN TO:
City Clerk
City of Pasco, Washington
525 North 3rd
Pasco WA 99301
PROCESS WATER REUSE FACILITY (PWRF)
AGREEMENT FOR BEUS RELEASE OF INTEREST IN USBR PROPERTY
THIS AGREEMENT between the City of Pasco, a Washington Municipal Corporation,
hereinafter referred to as "City", and Don and Quella Beus, hereinafter referred to as "Beus", and
Beus Farms, Inc., hereinafter referred to as "Farm", collectively referred to as "Parties", enter into
this Agreement for the purpose of Beus releasing interest in United States Bureau of Reclamation
(USBR) Parcel No. 113090058 in accordance with the following terms and conditions.
WHEREAS, the City owns, operates, and maintains a WA State Department of Ecology
("Ecology") -approved Process Water Reuse Facility ("PWRF') and 14 nearby farm circles for the
treatment and disposal of industrial wastewater from several local agricultural processing plants;
and
WHEREAS, the City's PWRF currently receives an annual total of over 900MG of
industrial wastewater from six agricultural food processors; and
WHEREAS, a new dairy processor proposes to build a large plant currently scheduled to
be operational by the end of 2023 and several existing agricultural processors wish to expand and
increase their industrial wastewater flow to the PWRF; and
WHEREAS, the City needs to increase treatment capacity of the PWRF, increase winter
storage pond capacity, and increase the land treatment system to accommodate the increased
growth in Pasco's agricultural processing market; and
WHEREAS, USBR parcel no. 113090058 is uniquely located adjacent to the north side of
City's PWRF property and provides the opportunity to expand the PWRF winter storage capacity
through the construction of lined storage ponds; and
WHEREAS, Farm, desires to expand their existing farming operation by establishing new
farm circles on Beus' 178.8 -acre property, parcel no. 124690059, using PWRF treated water to
irrigate said parcel, with the intent of Beus leasing said parcel to Farm; and
Beus Release of Interest in USBR Property Agreement Page 1 of 8
WHEREAS, Beus, Farm, and City agree it is in the interest of the Parties to enter into this
agreement for the mutual benefit of the parties.
NOW, THEREFORE,
IN CONSIDERATION OF THE MUTUAL CONVENANTS CONTAINED HEREIN,
the Parties agree as follows:
A. City Responsibilities:
City agrees, contingent on Ecology approval:
1. To provide a minimum of 100 million gallons per year and up to a maximum of 180
million gallons per year of PWRF treated wastewater to Beus parcel #124690059 for
irrigation purposes on up to 160 acres. Said wastewater shall be of such quality as
provided to other leased circles owned by the City PWRF. Said wastewater shall be at no
charge to Beus or Farm. Further, Beus and/or Farm are not required to take water when
they do not need it, provided, that Beus and/or Farm take the minimum of 100 million
gallons of water per year. Any mixing water shall be provided by City at no cost to Beus
or Farm.
2. City shall seek permit approval from Ecology for said wastewater to be used for irrigation
purposes on Beus parcel #124690059.
3. City to use existing PWRF irrigation pump station and construct a 12 -inch HDPE force
main to southeast corner of Beus parcel #124690059.
4. Estimated date for available PWRF irrigation water is March 2024.
5. City to provide maintenance on all pumps and underground pipes on City property.
6. City to pay Beus $258,420 within 30 days of receipt of approval of revised PWRF
Engineering Report and Ecology permit that includes said Beus parcel as part of City's
PWRF land treatment system.
7. Estimated date of Ecology approval is December 2022.
Notwithstanding Ecology approval, City agrees,
1. To negotiate a lease to Farm PWRF Circle 10, 127 acres in size, for the 2023 growing
seasons (1 year) under the following conditions:
a. Farm agrees to grow silage corn and triticale
b. Prior to farming PWRF Circle 10, Farm agrees to negotiate a standard PWRF lease
agreement, substantially in the same form as provided in Exhibit A, with City, and
Beus Release of Interest in USBR Property Agreement Page 2 of 8
farm said Circle in accordance with the lease terms and conditions, best PWRF
practices, and as required to meet Ecology permitting requirements.
c. Farm agrees to pay City standard lease amount as determined by City's Ag Lease
consultant, which is the same as all other PWRF growers.
d. Lease will begin March 2023, however, access to the Circle 10 will be made available
to Farm no later than September 1, 2022, for prep work.
2. In the event the City does not receive Ecology approval by March 31, 2023, for adding
Beus parcel to the PWRF Land Treatment System utilizing the crop rotation identified in
this agreement, City agrees to pay Beus $350,000 within 90 days.
3. Within 30 -days of City acquisition of USBR parcel #113090058, City shall grant Beus a
non-exclusive 30 -foot -wide access easement along the following property boundaries for
agricultural purposes to access Beus farm property.
a. West side of City parcel #113090085
b. West side of subject USBR parcel #113090058
c. North side of subject USBR parcel #113090058
4. City agrees to share use of existing access easement on Blasdel parcels #113100037 and
#113100055, provided Blasdel grants access rights to Beus, a copy of which to be provided
to City. In the event that City acquires the Blasdel property described herein, then City will
grant to Beus an access easement across said property.
B. Beus and Farm Responsibilities:
Notwithstanding Ecology approval, Beus and Farm agree:
1. Within five days of the execution date of this agreement, to submit a letter to the Ephrata
office of the USBR stating the release all Beus' and Farm's interests in the purchase of said
USBR parcel no. 113 09005 8. A copy of said letter to be provided to City at same time of
delivery to USBR.
2. Beus agrees to allow City immediate access to Beus parcel no. 124690059 for all necessary
work associated with the addition of said parcel into the PWRF land treatment system,
including but limited to, survey, cultural resources evaluation, geotechnical exploration,
groundwater monitoring well installations, water and soils testing, and any other need
related to getting approval by Ecology.
3. Beus agrees to grant City, within one month of execution date of this agreement, two
access and utility easements over, across, under, and within the following described areas:
a. South 30 feet of Beus parcel #124690059, and
b. A portion of the southwest corner of Beus parcel #124700038 large enough to sweep
future force mains into USBR parcel #113090058.
Beus Release of Interest in USBR Property Agreement Page 3 of 8
4. Said easements shall be for the installation, operation, and maintenance of underground
pipes and air -vac assemblies (if needed) to provide industrial wastewater to and from City's
PWRF.
5. City construction and maintenance work within said easements shall be coordinated with
Beus and/or Farm to minimize crop damage to the maximum extent possible. If crop
damage occurs as a result of City construction and maintenance work related to this
agreement, or as a result of failure of City installed facilities upon or under the easements
based on City's negligence in maintaining such facilities, City agrees to reimburse Beus
and/or Farm for damaged crops at market rates and Beus and Farm for equipment and land
damage.
Contingent on Ecology approval, Farm and/or Beus agree:
1. Upon Ecology approval of revised Engineering Report, Farm and/or Beus agree to install
pivot and mainline on Beus parcel #124690059 for irrigation purposes.
2. With Ecology approval of the delivery of PWRF irrigation water to Beus property, Farm
and/or Beus agree to receive from City a minimum of 100 million gallons each year for a
minimum of 20 consecutive years. Beus approves the foregoing and agrees to negotiate to
enter into a lease with Farm to allow Farm to receive the PWRF irrigation water pursuant
to an agreement between City and Farm referred to in paragraph 5 below. Notwithstanding
the foregoing, should the agreement be subject to the Reclamation Reform Act and the
rules and regulations thereof, then the agreement term shall be the maximum allowed term
pursuant to the Reclamation Reform Act, not to exceed 20 years.
3. Farm and/or Beus agrees to grow on parcel #124690059 potatoes the first year, followed by
Triticale for winter cover crop and silage. For the second and third year, corn for silage
will be grown followed by triticale for winter cover crop and silage. This three-year crop
rotation of one year of potatoes followed by two years of corn with a triticale winter crop
and silage each of the three years shall be followed unless an alternate crop rotation is
otherwise approved by City and Farm and/or Beus.
4. Farm and/or Beus agrees to accept pretreated PWRF wastewater `as -is' provided said
wastewater is not harmful, based on the same standards as provided to other leased circles
owned by the City PWRF, to crops and any mixing water shall be provided by City at no
cost to Beus or Farm.
5. Farm and/or Beus agrees to operate pivots on Beus parcel no. 124690059 in coordination
with City to help ensure the City meets Ecology's permit requirements for the PWRF land
disposal system. This will be in the same manner as existing PWRF growers that are under
City lease agreements. It is the intent of Farm and/or Beus and City to enter into a PWRF
Irrigation Agreement for the irrigation of herein referred parcel #. Farm and/or Beus agrees
to provide, at no cost to City, all maintenance on pivots and pipes located within Beus
parcel #124690059.
Beus Release of Interest in USBR Property Agreement Page 4 of 8
6. In the event that Farm and/or Beus and City are unable to enter into such Irrigation
Agreement for any reason, then the City agrees to pay Beus $350,000 within 90 days of the
failure of entering into said agreement, less any previous payments, and the above sections
1-5 of this agreement shall not be effective.
C. Other Terms and Conditions:
1. Dispute Resolution. In the event of dispute, the parties shall first meet in a good faith
attempt to resolve such dispute, with or without the assistance of mediation.
In the event the dispute remains, it shall be resolved by binding arbitration pursuant to
RCW 7.04A, as amended, and the Mandatory Rules of Arbitration (MAR) with all parties
waiving the right of a jury trial upon de novo review. Venue shall be placed in Franklin
County, Washington; the laws of the State of Washington shall apply; and the prevailing
party shall be entitled to its reasonable attorney fees and costs.
2. Assignability. This Agreement, and the rights and responsibilities hereunder, shall not be
assigned, conveyed, sublet, or transferred by Beus and/or Farm without the prior written
consent of the City, which consent shall not be unreasonably withheld. If Beus and/or
Farm wishes to lease parcel no. 124690059 for the sole purpose of growing potatoes, City
shall not unreasonably withhold consent provided all requirements of this agreement and
the aforementioned Irrigation Agreement remain the responsibility of Beus and/or Farm. It
is acknowledged by the parties as set forth in the recitals above that Beus is authorized to
lease said parcel to Farm without City's consent.
3. Notice. Any notice or information required or permitted to be given to the parties under
this Agreement shall be to the following addresses, unless otherwise specified:
City of Pasco
Mr. Dave Zabell, City Manager
525 North 3rd
Pasco, WA 99301
(509) 545-3404
zabelldApasco-wa. gov
Don and Quella Beus and Beus Farms, Inc.
Don Beus
502 E Vineyard Lane
Pasco, WA 99301
(509) 545-9812
beuscattle(a�pocketinet.com
Notice shall be deemed given upon receipt of personal delivery, e-mail transmission, or
five (5) days after deposit in the United States Mail in the case of regular mail, or next day
in the case of overnight delivery.
4. Modification. This Agreement may not be amended, modified, or terminated except by
written agreement signed and approved by all parties.
5. Effective Date. This Agreement shall become effective upon the date of signature
approval by the last party as indicated below.
Beus Release of Interest in USBR Property Agreement Page 5 of 8
DATED this day of , 2022.
[Signature pages follows]
Beus Release of Interest in USBR Property Agreement Page 6 of 8
CITY OF PASCO, WASHINGTON:
�.Zabell,CQ u. ager
STATE OF WASHINGTON)
: ss
COUNTY OF FRANKLIN )
On this day personally appeared before me Dave Zabell of the City of Pasco, Washington,
described in and who executed the within and foregoing instrument, and acknowledged that he
signed the same as his free and voluntary act and deed for the uses and purposes therein
mentioned.
GIVEN under my hand and official seal this `2a' day of 3 VVA 12022.
State of i tsbiogton
JANETTE SALAZAR ROMERO
LICENSE # 197927
MY COMMISSION EXPIRES
JANUARY 6, 2026
'II
Quella Beus
rotary Public in and for the State of Washington
Residing at �Aovtw't'4
My Commission Expires: p t - ply 00:3AA
STATE OF WASHINGTON)
n : ss
COUNTY OF TfbkNKt1N )
On this day personally appeared before me Don Beus and Quella Beus, of Franklin County,
Washington, described in and who executed the within and foregoing instrument, and
acknowledged that they signed the same as their free and voluntary act and deed for the uses and
purposes therein mentioned.
, 2022.
Beus Release of Interest in USBR Property Agreement Page 7 of 8
BEUS FARMS, INC.
By: (v
Don Beus
STATE OF WASHINGTON)
: ss
COUNTY OF FRANKLIN )
On this day personally appeared before me Don Beus, described in and who executed the
within and foregoing instrument, and acknowledged that he signed the same as his free and
voluntary act and deed for the uses and purposes therein mentioned.
GI i r my hand and official seal this day of 2022.
,Y "''�,
`�
iJA
a
Cd C -A
,6. 0,6.` •'�22� NOTA ZY PUBL in d for the Sta e of shington
O; m ` Residing at: n
2 �0ti�' ~� My Commission Expires:
''''0�
11111
Beus Release of Interest in USBR Property Agreement Page 8 of 8
CITY OF PASCO
PWRF Irrigation Agreement with Beus Farms, Inc.
THIS IRRIGATION AGREEMENT is entered into this day of ,
2022 by and between the City of Pasco, a Washington Municipal Corporation ("City'), and
Beus Farms, Inc. ("Grower'). This Agreement is made upon the terms and conditions and for
the considerations enumerated herein.
1. Description of Irrigated Property. City agrees to provide PWRF irrigation water to Grower
on the terms and conditions stated below to produce agricultural products upon the following
described real property ("Premises"):
A portion of parcel no. 124690059 located in the SE % of Section 2, Township
10N, Range 30 E: consisting of 179 acres, more or less.
2. Process Water Reuse Facility and Wastewater. Having been fully apprised of the critical need
to apply reuse water to the Premises at such times as may be imposed by City, arising from
City's obligation to timely distribute such reuse water from affiliated food processing facilities,
Grower, shall without limitation, follow the crop harvest scheduling plan described below:
• Potatoes in year one
• Followed by triticale for silage (planted in September and harvested in April)
• Corn for silage in year two
• Followed by triticale for silage (planted in September and harvested in April)
• Corn for silage in year three
• Followed by triticale for silage (planted in September and harvested in April)
• Then back to potatoes to continue this same three-year rotation
Grower agrees to strictly adhere to such plan with the specific objective of
maintaining availability of adequate field areas for the application of reuse water to field
crops. No changes to the above crop harvest plan shall made without prior written approval
from the City. City's approval for changes in crop rotations shall not be unreasonably
withheld dependent upon City's operational requirements of its reuse facility.
The parties understand and acknowledge that the Irrigated Premises are served by a
watering system consisting of fruit, vegetable, and dairy process wastewater, and consisting of
the PWRF irrigation pump station (IPS) and associated pipelines and other fixtures to the
Irrigated Premises. The parties further understand and acknowledge that the watering system
shall be operated by City, and that City shall, subject to the further terms hereof, have the
discretion to regulate the blend of fruit and vegetable wastewater and dairy wastewater
delivered to the Irrigated Premises for irrigation purposes.
Grower agrees to coordinate with City and accept vegetable and fruit and dairy process
wastewater to be applied to the Grower's crops and farmlands as outlined in the current City
Irrigation Lease (Beus)
of Pasco Crop Rotation Plan and Farm Operations Report (CRP/FOR) and City's State Waste
Discharge Permit No. ST5369.
City shall have final say on the wastewater application rate and schedule. The Grower
agrees to abide by the CRP/FOR requirements including the proper operation of the circle, a
balanced fertilizer program for the specific crop taking into consideration the total nitrogen,
nitrate, and TKN of the wastewater and residuals in the soils as identified in the CRP/FOR.
No fertilizer shall be applied upon the Premises without City's prior written consent,
which consent shall not be unreasonably withheld nor delayed. Commercial fertilizers shall not
be applied in excess of suggested label application, or in a manner inconsistent with label
instructions. City's management and nitrogen applied to the premises is critical to the utilization
of the premises as a portion of its Reuse Facility. Therefore, any violation of this section shall
constitute a substantial breach of this Lease. Grower shall report to City the results of all tests
on the crops and yield. Grower shall provide to City copies of any and all test results including
moisture tests taken on Grower's farmland.
3. Uses of the Premises. Grower shall put the Irrigated Premises to the full beneficial use in
accordance with customary industry standards, permitted uses, acres, and crops designated
herein, in compliance with the CRP/FOR. Said uses shall be further restricted by the terms of
any federal, state, or local law or regulation applicable thereto, and the terms of City's State
Waste Discharge Permit from the State of Washington, together with any other encumbrance
of record or known use being exercised at the time of the execution of this Agreement.
It is further understood and hereby acknowledged that the ultimate objective of the
City, with respect to Grower's property, is to utilize the property for reuse wastewater
treatment and application. Accordingly, throughout each crop year during the term of this
Agreement, City reserves the right and shall be entitled to test, inspect, investigate, survey,
excavate, construct, maintain, and otherwise utilize the property constituting the Irrigated
Premises preparatory to and/or as necessary to accomplish the stated objective in such a
manner as City deems appropriate, including without limitation, by requiring Grower to
accept reuse wastewater for disposal on the Premises in such quantities and at such times
as determined by City. Grower will cooperate with City to facilitate such activities and will
not unreasonably hinder or delay any such activities.
City agrees to reimburse Grower for crop or field damage, if any, arising from the
City's utilization of the Premises as set forth above. It shall be the responsibility of the
Grower to substantiate any claimed losses with evidence satisfactory to City.
4. Crop Damage from Application of Wastewater. City states that with respect to any timing,
quantity, or quality of reuse wastewater which may be delivered to Grower and applied to
Grower's crops under provisions of this Agreement requiring Grower to accept such
delivery(ies) and application on the behest of the City, it is the intent of City not to cause crop
damage by such application of wastewater, nor to disavow responsibility for damage which
Irrigation Lease (Beus) 2
might demonstrably occur on said crops solely from such application. However, the parties to
this Agreement, having previously observed the nature of wastewater applications, are fully
cognizant not only of the uncertainties relating to the developing technology of the process,
but also of the difficulty in proving crop loss as having been exclusively caused by said process
wastewater applications. Accordingly, while City shall make every reasonable effort to avoid
delivering wastewater at such times and under such circumstances as are likely to cause harm
to crops, the burden of proof of any damage claimed by Grower to have been caused to crops
of Grower, shall rest solely with Grower.
5. Water and Irrigation System. City shall be responsible for all costs of operating and
maintaining the wastewater treatment and irrigation systems on City property. Grower shall
be responsible for all costs of operating and maintaining the irrigation system on the Irrigated
Premises and shall be responsible for the payment of irrigation power charges except as limited
under Section 5 herein. Grower shall not be responsible for the cost of reuse water pumped to
the Irrigated Premises by City.
Grower shall be responsible for the cost and installation of a center pivot and all other
irrigation systems on Irrigated Premises, including pipelines, pumps, electrical pump motors
and/or switchgear as needed for a fully functioning system. All maintenance, repair, and
replacement of parts of said irrigation systems shall be the obligation of Grower, both as to
performance and payment of costs, except those repairs and replacements as may be caused
solely by City, its agents or employee's negligent acts or omissions.
The furnishing of said irrigation water shall imply no warranty on the part of City to
provide or guarantee an adequate water supply or the continued operation of the reuse irrigation
system. The City shall make reasonable efforts to provide reuse wastewater that will not clog
the irrigation system. Both parties, however, must assume there will be a certain amount of
unclogging required. Both parties agree that Grower shall be primarily responsible for any
unclogging, but also agree that in the event that Grower is unable to do so, City may perform
unclogging at their discretion. Operation of the water and irrigation system shall be upon a
schedule as approved by City.
6. Chemicals and Fertilizers. In addition to those requirements as provided in Section 2 above,
Grower shall apply chemicals and fertilizers to the Irrigated Premises according to standards
applicable to the industry and consistent with the current standards stated within the CRP/FOR.
City shall not incur any responsibility or liability to any third party for the negligent or
wrongful acts of the Grower related to the chemicals and/or fertilizers used or its application.
Grower and shall defend, indemnify, and hold City harmless from any damages resulting from
such negligent or wrongful act of the Grower.
7. Erosion Control and Crop Rotation. Grower shall follow an effective program of soil
erosion control, particularly against wind and water. Grower agrees to plant the Premises with
a cover crop to the specifications of the City within fifteen (15) days after each harvest, as
appropriate and consistent with the overall objective of the CRP/FOR. Crops will be rotated
Irrigation Lease (Beus) 3
so that potatoes will not be planted two (2) years consecutively in the same field. The planting
of two consecutive crops on the same land with the intent of obtaining a harvest from both
crops within the same crop year (double cropping) is prohibited without the express written
permission of City. Grazing of crop aftermath is not permitted.
8. Premises Maintenance. Grower shall not commit or permit to be committed any waste, strip,
damage to, or misuse of the Premises. All farming operations shall be conducted in a
husbandlike manner according to standards of the industry. Any and all fences, gates, toads,
field accesses, and other improvements to the property (including the irrigation system) shall
be maintained by City. Grower shall eradicate weeds, particularly puncture -vine and prevent
all noxious and other weeds from encroaching upon the Premises, utilizing practices approved
by the local weed control authorities and to the reasonable satisfaction of the City.
9. Deleterious, Hazardous, Toxic or Harmful Substances.
(a) Deleterious Material. Grower shall not make, or suffer to be made, any filling in of the
Irrigated Premises or any deposit of rock, earth, ballast, refuse, garbage, waste matter,
chemical, biological or other wastes, hydrocarbons, any other pollutants, or other matter
within or upon the Irrigated Premises, except as approved in writing by City. If Grower fails
to remove all non -approved fill material, refuse, garbage, wastes or any other of the above
materials from the Irrigated Premises, Grower agrees that City may, but is not obligated to,
remove such materials, and charge Grower for the cost of removal and disposal.
(b) Hazardous, Toxic, or Harmful Substances. Grower shall not keep on or about the
Irrigated Premises, any substances now or hereinafter designated as or containing
components now or hereinafter designated as hazardous, toxic, dangerous, or harmful, and/or
which are subject to regulation as hazardous, toxic, dangerous, or harmful by any federal,
state or local law, regulation, statute or ordinance (hereinafter collectively referred to as
"Hazardous Substances") unless such are necessary to carry out Grower's permitted use(s)
under Section 3 above, and unless Grower fully complies with all federal, state and local
laws, regulations, statutes, and ordinances, now in existence or as subsequently enacted or
amended.
(c) The Grower shall:
(1) Immediately notify City of.
i. All spills or releases of any Hazardous Substance affecting the Irrigated
Premises.
ii. All failures to comply with any federal, state, or local law, regulation, or
ordinance, as now enacted or as subsequently enacted or amended.
iii. All inspections of the Irrigated Premises by, or any correspondence,
orders, citations, or notifications from any regulatory entity concerning
Hazardous Substances affecting the Irrigated Premises.
iv. All regulatory orders or fines or all response or interim cleanup actions
taken by or proposed to be taken by any government entity or private party
concerning the Irrigated Premises.
Irrigation Lease (Beus) 4
(2) Upon request, provide copies to City of any and all correspondence, pleadings,
and/or reports received by or required of the Grower or issued or written by
the Grower, or on the Grower's behalf with respect to the use, presence,
transportation, or generation of Hazardous Substances related to the Irrigated
Premises.
(d) Grower shall be fully and completely liable to City, and shall indemnify, defend, and
hold harmless City and its agents and employees, with respect to any and all damages, costs,
fees (including attorneys' fees and costs), penalties (civil and criminal), and cleanup costs
assessed against or imposed as a result of the Growers use, disposal, transportation,
generation, and/or sale of Hazardous Substances, or that of Grower's employees, agents,
assigns, contractors, subcontractors, licensees, invitees, and for any breach of this subsection.
10. Indemnification. Grower has inspected and accepts the Premises as he finds them. Grower
agrees to assume all risk of, and indemnify, defend with legal counsel acceptable to City, and
hold harmless the City from any loss, costs, liability, claim or expense on account of personal
injury to or death of any persons whosoever including, but not limited to, employees of the
City and damage to or destruction of property to whomsoever belonging including, but not
limited to, property of the City, resulting in whole or in part, directly or indirectly, arising from
the Grower's use of the Premises or exercise of rights herein granted. Nothing herein
contained, however, shall be construed as indemnification against the sole negligence of the
City, its officers, employees, or agents.
11. Insurance. Grower agrees to carry general liability insurance for personal injury and property
damage liability, and to maintain workmen's compensation coverages as required by law.
General liability insurance policies shall name City as an insured and be with an insurance
carrier acceptable to City.
Such insurance shall provide for property damage liability coverage of at least
$100,000 and personal injury coverage of at least $1,000,000 for each occurrence and in
the aggregate. Grower shall furnish City with certificate indicating that such insurance is
in force and the premiums therefore have been paid.
Grower agrees to be personally responsible for the repair or replacement of any
irrigation equipment component or other improvement to City property damaged by the
Grower or Growers officers, employees, or agent, or as a result of their negligent acts or
omissions.
12. Assignment Prohibited. No part of this Agreement or the Irrigated Premises may be
assigned, mortgaged, sub -Irrigated, or otherwise transferred, without the prior written
consent of City. With such consent, City reserves the right to change the terms and
conditions of the Agreement as it may affect the assignee. This provision shall equally
apply to transfers arising by operation of law, or transfers to any by trustees in bankruptcy,
Irrigation Lease (Beus) 5
receivers, administrators, executors, and legatees.
13. Default. The following shall be events of default:
(a) Failure of Grower to comply with any term or condition or fulfill any obligation of this
Agreement within fifteen (15) days after written notice by City specifying the nature
of the default with reasonable particularity, or abandonment by the Grower of the
Irrigated Premises, and
(b) Failure to pay, when due, any tax, assessment, or payment required by law. If the
default is of such a nature that it cannot be completely remedied within a fifteen (15)
day period, this provision shall be complied with if Grower begins correction of the
default within the fifteen (15) day period and thereafter proceeds with reasonable
diligence and in good faith to affect the remedy as soon as practical.
In the event the default is not remedied as provided above and prevents City's
ability to apply reuse water to Irrigated Premises, City shall have the right to enter, take
possession, and remove the irrigation pivot and associated appurtenances by legal action
or by self-help with the use of reasonable force and without liability for damages. Such
right shall be cumulative and in addition to all other remedies available to City under
applicable law.
City may recover reasonable attorney's fees and costs expended to enforce the provisions
hereof.
In the event of an uncured default, City may initiate an action, without further
notice, for an unlawful detainer or for damages with venue being placed in Franklin
County, Washington, and with the substantially prevailing party entitled to an additional
judgment against the other for their reasonable attorneys' fees and costs incurred incident
to said action.
Waiver by either party of strict performance of any provision of this Agreement
shall not be a waiver of or prejudice the party's right to require strict performance of the
same provision in the future or of any other provision.
Irrigation Lease (Beus) 6
14. Notices. Any notice under this Agreement shall be deemed given when actually delivered
or when deposited in the United States mail, as certified mail, postage prepared, addressed
as follows:
City:
City of Pasco
Public Works Director
525 N 3rd Avenue
PO Box 293
Pasco, WA 99301
Grower:
Beus Farms, LLC
358 Clovernook Street
Richland, WA 99352
Or to such other addresses as may be specified from time to time by either of the parties
in writing.
15. Succession. Subject to the above -stated limitations on assignment of Grower's interest, this
Agreement shall be binding upon and inure to the benefit of the parties, their respective
personal representatives, successors, and assigns.
16. Inspection of the Premises. City reserves the right to itself and its agents to go upon the
Irrigated Premises at reasonable and proper times to inspect the same for purpose of
determining that the Agreement is being kept and performed by the Grower.
17. Time is of the Essence. The parties acknowledge and agree that time is of the essence with
respect to all the terms, conditions, and provisions of this Agreement.
18. Entirety of Lease. This document and its exhibits, incorporates the entire agreement of the
parties. No prior representation, stipulation, agreement, or understanding will be valid or
enforceable unless incorporated herein. Any changes or additions to this Agreement or its
attached exhibits shall be in writing and executed by the parties hereto. Neither City, nor
Grower shall be bound by verbal or implied agreements.
[Signature pages follow]
Irrigation Lease (Beus) 7
GROWER:
Beus Farms, LLC
Signature
Authorized Officer (print name)
State of Washington
County of Franklin
I certify that I know or have satisfactory evidence that
is the person who appeared before me, and said person acknowledged that he/she signed this
instrument, on oath stated that he/she was authorized to execute the instrument and
acknowledged it, as the of Beus Farms LLC to be the free and
voluntary act of such party for the uses and purposes mentioned in the instrument.
SUBSCRIBED and SWORN to before me this day of , 2022.
NOTARY PUBLIC in and for the State of Washington
Residing at
My Commission Expires:
Irrigation Lease (Beus) 8
CITY. -
City of Pasco
By: Dave Zabell,
City Manager
State of Washington
County of Franklin
I certify that I know or have satisfactory evidence that Dave Zabell is the person who
appeared before me, and said person acknowledged that he signed this instrument, on oath stated that
he was authorized to execute the instrument and acknowledged it, as the City Manager of the CITY
OF PASCO, a Washington municipal corporation, to be the free and voluntary act of such party for
the uses and purposes mentioned in the instrument.
SUBSCRIBED and SWORN to before me this day of )2022.
NOTARY PUBLIC in and for the State of Washington
Residing at
My Commission Expires:
Irrigation Lease (Beus) 9
EXHIBIT A
CITY OF PASCO
Agricultural Lease No. FW -1105 A
THIS AGRICULTURAL LEASE is entered into this. Ist day of November, 2021 by
and between the City of Pasco, a Washington Municipal Corporation ("Lessor"), and Farms,
LLC ("Lessee"). This Lease is made upon the terms and conditions and for the
consideration enumerated herein.
1. Description of Leased Property, Lessor leases to Lessee, and Lessee leases from
Lessor, on the terms and conditions stated below, crop circles numbered 3 and 15 for the
production of agricultural products upon the following described real property ("Premises"):
A portion of the irrigated cropland located in the SW 1/4, Section 2, Township 9N,
Range 30 E; and the NW 1/4, Section 11, Township 9N, Range 30 E; and more commonly
known as Irrigation Circles 15 and 3; all in Franklin County, Washington and consisting of
256 acres, more or less.
2. Process Water Reuse Facility and Wastewat-er. Having been fully apprised of
the critical need to apply reuse water to the Premises at such times as may be imposed by Lessor,
arising from Lessor's obligation to timely distribute such reuse water from affiliated food
processing facilities, Lessee, shall without limitation, submit to a crop harvest scheduling plan
prepared or approved by Lessor. Lessee agrees to strictly adhere to such plan at the behest of
Lessor with the specific objective of maintaining availability of adequate field areas for the
application of reuse water to field crops. Lessor reserves the right to limit the Lessee's number of
crop cuttings to three (3) cuttings per season unless additional cuttings are approved, in advance,
by the City. The City's approval for additional cuttings shall not be unreasonably withheld
dependent upon the Lessor's operational requirements of its reuse facility.
The parties understand and acknowledge that the Leased Premises are served by two
watering systems, specifically (1) the irrigation system consisting of wells servicing the Leased
Premises, and associated pipes and other fixtures; and (2) the fruit and vegetable process
wastewater system, consisting of the offset pump station, and pipelines to the Leased Premises.
The parties further understand and acknowledge that both systems shall be operated by Lessor,
and that Lessor shall, subject to the further terms hereof, have the discretion to regulate the blend
of wastewater and well water delivered to the Leased Premises for irrigation purposes.
The Lessee agrees to coordinate with the Lessor and accept vegetable and fruit process
wastewater to be applied to the Lessee's crops and farmlands as outlined in the current City of
Pasco Crop Rotation Plan and Farm Operations Report (CRP/FOR) and State Discharge Permit
No. ST5369. The Lessor shall have the final say on the wastewater application rate and
schedule. The Lessee agrees to abide by the CRP/FOR requirements including the proper
Agricultural Lease (1105 A) l
operation of the circle and well pumps, a balanced fertilizer program for the specific crop taking
into consideration the total nitrogen, nitrate, and TKN of the wastewater, well water, and
residuals in the soils as identified in the CRP/FOR. No fertilizer shall be applied upon the
premises without the Lessor's prior written consent, which consent shall not be unreasonably
withheld nor delayed. Commercial fertilizers shall not be applied in excess of suggested label
application, or in a manner inconsistent with label instructions. Lessor's management and
nitrogen applied to the premises is critical to the utilization of the premises as a portion of its
Reuse Facility. Therefore, any violation of this section shall constitute a substantial breach of
this Lease. The Lessee shall report to the Lessor the results of all tests on the crops and yield.
The Lessee shall provide to the Lessor copies of any and all test results including moisture tests
taken on the Lessor's farmlands.
3. Term of Lease.
(a) [_j (check box if applicable).
Single Season. The term of the Lease shall be for: (i) Circles 3, and 15:
commencing on the 1st day of November, 2021; and terminating on the 3st day of
October, 2022; unless earlier terminated or renewed as provided below. In the event this
Lease terminates prior to the completion of harvest, the term of this Lease shall be
extended for a reasonable period for time to allow for completion of harvest. Lessee shall
give a minimum of ten (10) days written notice to Lessor before completion of harvest or
end of planting. Prior to vacating the Leased Premises, Lessee shall leave the Leased
Premises and all improvements thereon in the state of repair and cleanliness required to
be maintained by the Lessee during the term of this Lease.
(b) rX I (check box if applicable).
Renewal. Lessee shall have the option to renew this Lease for one (1) additional
growing seasons commencing and terminating on the dates as provided in subsection (a)
above for the following calendar year conditioned upon: (i) Lessee's written notice of its
intent to exercise the option to renew no later than November 30 of the current year; (ii)
agreement with the Lessor as the rent and total payment to be applicable for the renewal
term as an amendment to Section 4 below by December 15 of the current year; and (iii)
Lessee's prior faithful performance of the terms and conditions of this Lease.
4. Rent.
(a) "Total Payment" shall be the sum of: 1) the total of all rent (rent per acre x
total number of acres;) and 2) Washington State Leasehold Tax calculated
on said total rent.
Agricultural Lease (1105 A) 2
(b) "Payment Per Acre" shall be the sum of: 1) rent per acre and 2) the
Washington State Leasehold Tax as calculated on the rent per acre amount.
(c) Lessee shall pay for said Premises the following amounts to Lessor:
Circle No. Crop Total Rent Tax Per Payment Per Total Payment
Acres Per Acre Acre
Acre
3 and 15 Alfalfa* 256 $ $ $ $
* ALL harvests of the forages described herein shall be as green chop. (not dry hay) unless
expressly approved in advance by Lessor.
(d) Total payment includes Washington State Leasehold Tax in the amount of 12.84%
which Lessor shall deduct from total payment made by Lessee and remit to State. [Total
payment of = total rent of I + 12.84% tax of
(e) In the event that the Washington State Leasehold Tax percentage increases
during the term of this lease, this lease shall be modified to increase the tax rate under this
Section 4, and the Total Payment shall be increased accordingly, unless otherwise agreed by the
parties hereto.
(f) Total payment shall be made in two (2) installments. First-half payment in
the sum of J shall be due and payable on/or before AL)ril 1, 2022; and the second half
payment in the sum of I shall be due and payable on/or before October 31, 2022.
(g) All payments shall be made to the City of Pasco, c/o R. Henry Johnson,
2202 West Clearwater Avenue, Kennewick, WA 99336, or such other place as the Lessor
may designate. Lessee shall have the City of Pasco included as payee on any check
received by the Lessee from the sale of crops from these Premises as long as there is any
rental or other charges for repair and maintenance due and owing by the Lessee. All
payments shall be remitted within fifteen (15) days of sale of crops.
(h) In the event the Lessee desires a change in acreage, crops, or use, prior
written authorization must be received from Lessor. Approval to such change may be
conditioned upon an adjustment in the payments provided above.
(i) For each renewal term as provided in Section 3(b) above, the Parties shall
determine the rent and total payment based upon the appropriate market price, crop
yields, and cost of production records of which shall be provided by the Lessee.
Agricultural Lease (1105 A) 3
5. Rental Adjustments Lessor retains the right to assess additional charges for
circles which are not planted in a timely fashion to cover crops where and when appropriate for
best cultural case, not meeting the CRP/FOR crop schedules, or on which wind erosion occurs.
The extent of the charge shall be at the discretion of the Lessor, and will not exceed $20.00
leasehold tax included per acre and will be in addition to the payments as described above. Said
charge does not supplant the responsibility of the Lessee to establish a cover crop. Lessee agrees
that since Lessor is responsible for the cost of electrical power to distribute irrigation water to the
Leased Premises, it is justified for Lessor to impose reasonable limits on total irrigation water
used. Accordingly, Lessor may at its sole discretion add an assessment to Lessee's final annual
rental payment of an amount equal to the actual cost of power to distribute irrigation water to the
Leased Premises when water usage for "best -practice" crop production exceeds the standard for
the subject crop requirements in the relevant area of Franklin County as expressed in the
Washington Irrigation Guide. Water applied at the preference of Lessor for the sole purpose of
consuming "process re -use water" shall not be considered as contributory to the "crop
production" application expressed herein.
6. Uses of the Premises. Lessee shall put the Leased Premises to the full beneficial
use in accordance with customary industry standards, permitted uses, acres, and crops designated
herein, in compliance with the CRP/FOR. Said uses shall be further restricted by the terms of
any federal, state, or local law or regulation applicable thereto, and the terms of Lessor's Water
Permit from the State of Washington, together with any other encumbrance of record or known
use being exercised at the time of the execution of this Lease. It is further understood and hereby
acknowledged that the ultimate objective of the Lessor, with respect to this property, is to
prepare and utilize the property for reuse wastewater treatment and application. Accordingly,
throughout each crop year during the term of this Lease, Lessor reserves the right and shall be
entitled to test, inspect, investigate, survey, excavate, construct, maintain, and otherwise utilize
the property constituting the Leased Premises preparatory to and/or as necessary to accomplish
the stated objective in such a manner as Lessor deems appropriate, including without limitation,
by requiring Lessee to accept reuse wastewater for disposal on the Premises in such quantities
and at such times as determined by Lessor. Lessee will cooperate with Lessor to facilitate such
activities, and will not unreasonably hinder or delay any such activities. Lessor agrees to
reimburse Lessee for crop or field damage, if any, arising from the Lessor's utilization of the
Premises as set forth above. It shall be the responsibility of the Lessee to substantiate any
claimed losses with evidence satisfactory to Lessor.
7. Crog Damage from AB1211cation of Wastewater. Lessor states that with respect
to any timing, quantity, or quality of reuse wastewater which may be delivered to Lessee and
applied to Lessee's crops under provisions of this Lease requiring Lessee to accept such
delivery(ies) and application on the behest of the Lessor, it is the intent of Lessor not to cause
crop damage by such application of wastewater, nor to disavow responsibility for damage which
might demonstrably occur on said crops solely from such application. However, the parties to
this Lease having previously observed the nature of wastewater applications are fully cognizant
not only of the uncertainties relating to the developing technology of the process, but also of the
Agricultural Lease (1105 A) 4
difficulty in proving crop loss as having been exclusively caused by said waste applications.
Accordingly, while Lessor shall make every reasonable effort to avoid delivering wastewater at
such times and under such circumstances as are likely to cause harm to crops, the burden of
proof of any damage claimed by Lessee to have been caused to crops of Lessee, shall rest solely
with Lessee.
8. Water and Irrigation S �s�. Lessor shall be responsible for all costs of
operating the irrigation system on the Leased Premises, and shall be responsible for the payment
of irrigation power charges except as limited under Section 5 herein. Lessee shall not be
responsible for the cost of reuse water pumped to the Leased Premises by Lessor.
The Leased Premises come equipped with center pivot irrigation systems, including
wells, pipelines, turbine pumps, and electrical pump motors and switchgear. The furnishing of
said irrigation shall imply no warranty on the part of the Lessor to provide or guarantee an
adequate water supply or the continued operation of the irrigation system. All maintenance,
repair, and replacement of parts of said irrigation system shall be the obligation of the Lessor,
both as to performance and payment of costs, except those repairs and replacements as may be
caused by the Lessee, its agents or employee's negligent acts or omissions. The Lessor shall
make reasonable efforts to provide reuse wastewater that will not clog the irrigation system.
Both parties, however, must assume there will be a certain amount of unclogging required. Both
parties agree that Lessor shall be primarily responsible for any unclogging, but also agree that in
the event that Lessor is unable to do so, Lessee may perform unclogging at their discretion.
Operation of the water and irrigation system shall be upon a schedule as approved by Lessor.
9. Liens.
(a) Lessee shall pay as due all claims for work done on and for services
rendered or materials furnished to the Premises which are done for the account of the
Lessee as herein provided. Lessee shall keep the Premises free of any liens and
indemnify, defend and hold the Lessor harmless from all costs, damages, or charges,
including attorney's fees, necessary to discharge such liens. Lessor, at its option, may pay
the amount of any claim or lien and add said amount to total payment required under this
lease, including interest on said claim or lien amount at the rate of twelve percent (12%)
per annum, or the maximum amount permitted by statute, on said amount paid from the
date of payment. Payment of a claim or lien amount shall not constitute a waiver of any
right or remedy which Lessor would otherwise have on account of Lessee's default in this
or any other term of the Lease.
(b) The Lessor may file and maintain a landlord or crop lien in order to secure
any payment or obligation required under this Lease.
10. Chemicals and Fertilizers. In addition to those requirements as provided in
Section 2 above, Lessee shall apply chemicals and fertilizers to the Leased Premises according to
Agricultural Lease (1105 A) 5
standards applicable to the industry and consistent with the current standards stated within the
CRP/FOR. Lessor shall not incur any responsibility or liability to any third party for the
negligent or wrongful acts of the Lessee related to the chemicals and/or fertilizers used or its
application, and shall defend, indemnify, and hold Lessor harmless from any damages resulting
from such negligent or wrongful act of the Lessee.
11. erosion Control and Crop Rota 'on. Lessee shall follow an effective program
of soil erosion control, particularly against wind and water. Lessee agrees to plant the Premises
to a cover crop to the specifications of the Lessor within fifteen (15) days after each harvest, as
appropriate and consistent with the overall objective of the CRP/FOR. Crops will be rotated so
that potatoes will not be planted two (2) years consecutively in the same field. The planting of
two consecutive crops on the same land with the intent of obtaining a harvest from both crops
within the same crop year (double cropping) is prohibited without the express written permission
of Lessor. The Lessor reserves the right with the granting of such permission to assess additional
rents from Lessee for this practice. Grazing of crop aftermath is not permitted.
12. Premises Maintenance. Lessee shall not commit or permit to be committed any
waste, strip, damage to, or misuse of the Premises. All farming operations shall be conducted in
a husbandlike manner according to standards of the industry. Any and all fences, gates, toads,
field accesses, and other improvements to the property (including the irrigation system) shall be
maintained by Lessor. Lessee shall eradicate weeds, particularly puncture -vine and prevent all
noxious and other weeds from encroaching upon the Premises, utilizing practices approved by
the local weed control authorities and to the reasonable satisfaction of the Lessor.
13. Deleterious. Hazardous, Toxic, or Harmful Substances..
(a) Deleterious Material. The Lessee shall not make, or suffer to be made,
any filling in of the lease Premises or any deposit of rock, earth, ballast, refuses garbage,
waste matter, chemical, biological or other wastes, hydrocarbons, any other pollutants, or
other matter within or upon the lease Premises, except as approved in writing by the
Lessor. If the Lessee fails to remove all non -approved fill material, refuse, garbage,
wastes or any other of the above materials from the lease Premises, the Lessee agrees
that the Lessor may, but is not obligated to, remove such materials and charge the
Lessee for the cost of removal and disposal.
(b) Hazardous Toxic or HarmLyl Substances. The Lessee shall not keep on or
about the lease Premises, any substances now or hereinafter designated as or containing
components now or hereinafter designated as hazardous, toxic, dangerous, or harmful,
and/or which are subject to regulation as hazardous, toxic, dangerous, or harmful by any
federal, state or local law, regulation, statute or ordinance (hereinafter collectively
referred to as 'Hazardous Substances') unless such are necessary to carry out the
Lessee's permitted use(s) under Section 6 above, and unless the Lessee fully complies
Agricultural Lease (1105 A) 6
with all federal, state and local laws, regulations, statutes, and ordinances, now in
existence or as subsequently enacted or amended.
(c) The Lessee shall:
(1) Immediately notify the Lessor of (i) all spills or releases of any
Hazardous Substance affecting the lease Premises, (ii) all failures to comply with
any federal, state, or local law, regulation or ordinance, as now enacted 'or as
subsequently enacted or amended, (iii) all inspections of the lease Premises by,
or any correspondence, orders, citations, or notifications from any regulatory
entity concerning Hazardous Substances affecting the lease Premises, (iv) all
regulatory orders or fines or all response or interim cleanup actions taken by or
proposed to be taken by any government entity or private party concerning the
lease Premises; and
(2) On request, provide copies to the Lessor of any and all
correspondence, pleadings, and/or reports received by or required of the Lessee
or issued or written by the Lessee, or on the Lessee's behalf with respect to the
use, presence, transportation, or generation of Hazardous Substances related to
the Leased Premises.
(d) The Lessee shall be fully and completely liable to the Lessor, and shall
indemnify, defend, and hold harmless the Lessor and its agents and employees, with
respect to any and all damages, costs, fees (including attorneys' fees and costs),
penalties (civil and criminal), and cleanup costs assessed against or imposed as a result
of the Lessee's use, disposal, transportation, generation, and/or sale of Hazardous
Substances, or that of the Lessee's employees, agents, assigns, contractors,
subcontractors, licensees, invitees, and for any breach of this subsection.
14. Indemnification. Lessee has inspected and accepts the Premises as he finds
them. Lessee agrees to assume all risk of, and indemnify, defend with legal counsel acceptable
to Lessor, and hold harmless the Lessor from any loss, costs, liability, claim or expense on
account of personal injury to or death of any persons whosoever including, but not limited to,
employees of the Lessor and damage to or destruction of property to whomsoever belonging
including, but not limited to, property of the Lessor, resulting in whole or in part, directly or
indirectly, arising from the Lessee's use of the Premises or exercise of rights herein granted.
Nothing herein contained, however, shall be construed as indemnification against the sole
negligence of the Lessor, its officers, employees, or agents.
15. Insurance. Lessee agrees, during the term of this Lease or any renewals thereof,
to carry general liability insurance for personal injury and property damage liability, and to
maintain workmen's compensation coverages as required by law. General liability insurance
policies shall name Lessor as an insured and be with an insurance carrier acceptable to Lessor.
Agricultural Lease (1105 A) 7
Such insurance shall provide for property damage liability coverage of at least $100,000 and
personal injury coverage of at least $1,000,000 for each occurrence and in the aggregate. Lessee
shall furnish Lessor with certificate indicating that such insurance is in force and the premiums
therefore have been paid.
Lessee agrees to be personally responsible for the repair or replacement of any irrigation
equipment component or other improvement to the property damaged by the Lessee or Lessee's
officers, employees, or agent, or as a result of their negligent acts or omissions.
16. JULerW. Any amount due by the Lessee to the Lessor not paid within fifteen (15)
days shall bear interest at the rate of twelve (12%) per annum, or the maximum amount
permitted by statute, from the date due.
17. Improvements. All improvements placed upon the Premises during the term of
this Lease shall become a part of the Premises and the property of the Lessor, unless the Lessor
agrees otherwise. Lessor may require Lessee to remove any property placed upon the Premises
which the Lessor deems unfit to remain thereon at the termination of the Lease. If the Lessee
fails to remove the same when so requested, Lessor may do so and charge the expenses thereof to
the Lessee.
18. Sublease or Assignment Prohibited. No part of this Lease or the Leased
Premises may be assigned, mortgaged, subleased, or otherwise transferred, without the prior
written consent of the Lessor. With such consent, the Lessor reserves the right to change the
terms and conditions of the Lease as it may affect the assignee. This provision shall equally
apply to transfers arising by operation of law, or transfers to any by trustees in bankruptcy,
receivers, administrators, executors, and legatees.
19. Default. The following shall be events of default: (a) failure to pay installment of
rent and leasehold excise tax (total payment installment) on or before the date provided in
Section 4 above; (b) failure of Lessee to comply with any term or condition or fulfill any
obligation of the Lease, other than the payment of rent and tax, within fifteen (15) days after
written notice by Lessor specifying the nature of the default with reasonable particularity, or
abandonment by the Lessee of the property; and (c) failure to pay, when due, any tax,
assessment, or payment required under the terms of this Lease. If the default is of such a nature
that it cannot be completely remedied within the fifteen (15) day period, this provision shall be
complied with if Lessee begins correction of the default within the fifteen (15) day period and
thereafter proceeds with reasonable diligence and in good faith to effect the remedy as soon as
practical.
In the event the default is not remedied as provided above, Lessor shall have the right to
re-enter, take possession of the Premises, and remove any persons or property by legal action or
by self-help with the use of reasonable force and without liability for damages. Such right shall
be cumulative and in addition to all other remedies available to the Lessor under applicable law.
Agricultural Lease (1105 A) 8
Lessor may recover reasonable attorney's fees and costs expended to enforce the provisions
hereof.
In the event of an uncured default, Lessor may initiate an action, without further notice,
for an unlawful detainer or for damages with venue being placed in Franklin County,
Washington, and with the substantially prevailing party entitled to an additional judgment against
the other for their reasonable attorneys' fees and costs incurred incident to said action.
Waiver by either party of strict performance of any provision of this Lease shall not be a
waiver of or prejudice the party's right to require strict performance of the same provision in the
future or of any other provision.
20. Notices. Any notice under this Lease shall be deemed given when actually
delivered or when deposited in the United States mail, as certified mail, postage prepared,
addressed as follows:
Lessor:
Lessee:
City of Pasco Farms, LLC
c/o R. Henry Johnson Richland WA 99352
2202 West Clearwater Avenue
Kennewick WA 99336
Or to such other addresses as may be specified from time to time by either of the parties
in writing.
21. Succession. Subject to the above -stated limitations on assignment of Lessee's
interest, this Lease shall be binding upon and inure to the benefi. of the parties, their respective
personal representatives, successors, and assigns. Widd4F �`rI8100
unl,sttldtiu"it, a
OR. OR 9ti\A Jr f. -
22. Inspection of the Premises. Lessor reserves the right toy ifs ffmw lKugents to go
upon the Premises at reasonable and proper times to inspect the same r puipose odetermining
that the Lease is being kept and performed by the Lessee.
23. Time is of the Essence. The parties acknowledge and agree that time is of the
essence with respect to all of the terms, conditions and provisions of this Lease.
24. Entirejy of Lease. This document and its exhibits, incorporates the entire
agreement of the parties. No prior representation, stipulation, agreement, or understanding will
be valid or enforceable unless incorporated herein. Any changes or additions to this Lease or its
attached exhibits shall be in writing and executed by the parties hereto. Neither the Lessor, nor
the Lessee shall be bound by verbal or implied agreements.
Agricultural Lease (1105 A) 9
LESSEE:
Farms, LLC
Authorized Officer (print name)
State of Washington
County of Franklin
I certify that I know or have satisfactory evidence that — is the person who appe gd
before me, and said person acknowledged that he/she signed this instrument, on oath stated
that he/she was authorized to execute the instrument and acknowledged it, as the
bff rinetlM*h, be the free and voluntary act of such party for the uses and purposes mentioned
SUBSCRIBED and SWORN to before me this 112� day of _, 20 a�
Notary Public
'tate of Wa~ou
J A ,� ! : "i TE SALAZARAWMERO _ _ _ i` GA/1 �A11G 1-6
LICENSE #,-.197827;-,' NOTARY PUBLIC in and for the State of Washington
%I rOMMISSION EXPIRES
Residing at
JANUARY 6, 202b g
My Commission Expires:_--,._
Agricultural Lease (1105 A) 10
LESSOR:
City of Pasco
State of Washington
County of Franklin
I certify that I know or have satisfactory evidence that Dave Zabell is the person who
appeared before me, and said person acknowledged that he/she signed this instrument, on oath
stated that he/she was authorized to execute the instrument and acknowledged it, as the City
Manager of the CITY OF PASCO, a Washington municipal corporation, to be the free and
voluntary act of such party for the uses and purposes mentioned in the instrument.
SUBSCRIBED and SWORN to before me this `� day of 'w, 20
APRIL CULWEhL
NOTARY PUBLIC #20$573 NOTAR PUBIC in and for the State of Washington
STATE OF WASHINGTON Residing at
-
COMMISSION EXPIRES
JULY 19, 2023
My Commission Expires:
Agricultural Lease (1105 A) 11