HomeMy WebLinkAboutMiddleton Six Sons - Agriculture Lease No. 113190053 (C16)1 L_ Cilyl
vsSco
Memo
To: Dave Zabell
PUBLIC WORKS DEPARThIENT (509) 543-5738
PO Box 293/525 North 3rd Ave. Pasco.'IA 99301'www.pasco-wa.go-,7
�/J,)
From: Janette Romero on behalf of Steve Worley
Date: 12.27.2021
Project: Middleton Six Sons Farms — Agriculture Lease No. 113190053
Lease Agreement with>\liddleton Six Sons Farms for farm circle 16 (85 acres) is attached for signature.
Term: April 1, 2021 -- October 31, 2023.
Legal has reviewed this Agreement: ❑X Yes ❑ No ❑ N'A
Rent calculations for yea,rs 1-3
Circle
number
Growing
year
Crop
Total
Acres
Rent
Per
Acre
Tax
Per
Acre
Payment
her acre
Total
payment
16 South
2021
Corn
71
$177.25
$22.75
$200.00
$14.200.00
16 South
2022
Potatoes
71
5265.87
534.13
x300.00
x21.300.00
16 South
2023
Potatoes
71
$265.87
$34.13
$300.00
521,300.00
16 South
2024*
Corn
71
TBD
-
-
-
Legal has reviewed this Agreement: ❑X Yes ❑ No ❑ N'A
� arya
,I��
vsSco
May 20, 2022
Middleton Six Sons Farm
1441 Pasco Kahlotus Road
Pasco, WA 99301
PUBLIC WORKS DEPARTMENT (509) 543-5738
PO Box 293/525 North 3' Ave. Pasco, WA 99301/www.pasco-wa.gov
Re: Subleasing; Agricultural Lease No. 113190053
Mr. Middleton,
Middleton Six Sons Farm (Lessee) and the City of Pasco (Lessor) entered into an agricultural lease agreement for
crop circle numbered 16 South in April of 2021.
Section 14 of the agreement states the following:
"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."
In accordance with the terms of the agreement, including the clause that permits the Lessor to grant permission
to the Lessee to sublease all or a portion of Circle 16 South, the City grants permission to Middleton Six Sons
Farm to sublease Circle 16 South for the sole purpose of planting, growing, and harvesting potatoes, during the
2022 and 2023 growing/harvest seasons, and for any future year potatoes are planted, grown, and harvested on
Circle 16 South, unless and until the City notifies Middleton Six Sons Farms subleasing, including subleasing for
planting, growing, and harvesting potatoes, is prohibited.
Except for conditions stated in this letter, all other terms and conditions of the agreement are applicable and
remain unchanged for Middleton Six Sons Farms and any agent of Middleton Six Sons Farms who perform
services on Circle 16 South.
Sincerely
John Millan,
Deputy Public Works Director
cc: Henry Johnson
CITY OF PASCO
Agricultural Lease No. 113190053
THIS AGRICULTURAL LEASE is entered into this 1st day of April, 2021, by and
between the City of Pasco, a Washington Municipal Corporation ("Lessor"), and Middleton Six
Sons Farms ("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, a crop circle numbered 16 South for the
production of agricultural products upon the following described real property ("Premises"):
A portion of the irrigated cropland located in the NW 1/4 Section 14 Township 9N,
Range 30 E, and known as Circle 16 South in Franklin County, WA - Comprising
85 acres more or less. Also in Auditors Records of Franklin County - Parcel
113190053.
2. Term of Lease.
The term of the Lease shall be for: Circle 16 South commencing on the 1 st day of April,
2021, and terminating on the 31st day of October, 2023; unless earlier terminated or extended 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.
3. Rent.
(a) "Total Payment" shall be the annual sum o£ 1) the total of all rent (rent per
acre x total # of acres;) and 2) Washington State Leasehold Tax calculated on said total
rent.
(b) "Payment per acre" shall be the sum of rent per acre and 2) Washington State
Leasehold Tax as calculated on the rent per acre amount.
(c) Lessee shall pay as rent for said Premises the following amounts:
Circle No.
16 South
Growing
Year
Crop
Total
Acres
Rent Per
Acre
Tax Per
Acre
Payment
Per Acre
Total
Payment
16 South
2021
Corn
71
$177.25
$22.75
$200
$14,200
16 South
2022
Potatoes
71
$265.87
$34.13
$300
$21,300
16 South
2023
Potatoes
71
$265.87
$34.13
$300
$21,300
Agricultural Lease - 1
16 South 2024* Corn 71 TBD
* Fourth Year City Option Only
(d) Washington State Leasehold Excise Tax shall be paid by the Lessor
(e) Lease payments shall be due and payable on or before January 31 st of each
respective crop year during the term of this lease agreement.
(f) 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.
(g) 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.
4. 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. 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 eventual 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, of
Lessor's failure to adhere to industry standard practice, satisfactory to Lessor.
5. Water and Irrigation System. Lessee 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.
The premises are/ will be equipped with an irrigation system owned and installed by the
Lessee, and Lessee shall be responsible for the operation, care and repair of said system at all times
throughout the term of this Lease Agreement.
Agricultural Lease - 2
6. 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 as additional rent with interest 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.
7. Chemicals and Fertilizers. Lessee shall apply chemicals and fertilizers to the
Leased Premises according to standards applicable to the industry and consistent with the current
best practice standards. 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.
8. Erosion Control and Crop Rotation. 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. Crops will be rotated so that potatoes will not be planted two (2) years consecutively
in the same field without the express consent of Lessor. 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 as
applicable and appropriate for this practice. Grazing of crop aftermath is not permitted.
9. 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 husband -like manner according to standards of the industry. Any and all fences, gates, roads,
field accesses, and other improvements to the property (including the irrigation system) shall be
maintained by Lessee. 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.
Lessee also agrees to maintain roads and field access in good, passable condition.
10. Deleterious, Hazardous, Toxic, or Harmful Substances.
Agricultural Lease - 3
(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, refuse, 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 Harmful 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 4 above, and unless the Lessee fully complies 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.
Agricultural Lease - 4
11. 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.
12. 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.
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.
13. Interest. 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.
14. 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.
15. Default. The following shall be events of default: (a) failure to pay rent on or
before the date provided in Section 3above; (b) failure of Lessee to comply with any term or
condition or fulfill any obligation of the Lease, other than the payment of rent, 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.
Agricultural Lease - 5
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.
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.
16. 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:
City of Pasco
c/o R. Henry Johnson
2202 West Clearwater Avenue
Kennewick WA 99336
Lessee:
Wd Yl SAX SDviS
iyltl fnso icOl Div( VV.
Or to such other addresses as may be specified from time to time by either of the parties in
writing.
17. Succession. Subject to the above -stated limitations on assignment of Lessee's
interest, this Lease shall be binding upon and inure to the benefit of the parties, their respective
personal representatives, successors, and assigns.
18. Inspection of the Premises. Lessor reserves the right to itself and its agents to go
upon the Premises at reasonable and proper times to inspect the same for purpose of determining
that the Lease is being kept and performed by the Lessee.
19. 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.
20. 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 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 - 6
DATED this
LESSOR:
City of Pasco
;5"- day of (Atw) , 20 :*.
ORE 0. .�-J.i
State of Washington )
. ss.
County of Franklin )
LESSEE:
Middleton Six Sons Farms
Authorized—
Officer
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.
ED and SWORN to before me this day of 201a
f
te of W�d�E SALAZAR ROMEROICENSE # 19752? _iOTARY PIT in and for the State of Washington
MMISSION EXPIRESNUARY 6, 2026 Residing at V4L4L(t P d1, LA*
My Commission Expires: b I - 96 - a0' to
State of Washington )
ss.
County of 11'i+vik )
I certify that I know or have satisfactory evidence that 611 V �M4-�QVI is the
person who appeared before me, and said person acknowledged that he/she signed this instrument,
oji.oath stated that he/she was authorized to execute the instrument and acknowledged it, as the
1%A (I V1 G_AJ& of �V\Ad �AIM Sx Sor1s �w ivl 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 9V"' day of 'MGw , 20 3�
n
ZIcVI vt;X_bt Way ,, Vb n e
Notary PoMk OTARY PUBLIC in and for the State of Washington
State of Washhkgtat Residing at l��tJl of �• ct , LAA
JANE'YTE SALAZAR ROMERO
LICENSE # 197527 My Commission Expires: p 1 - 1,`(p - ar, M
MY COMMISSION EXPIRES
JANUARY 6, 2026
Agricultural Lease - 7