08-94 Resolution No. 08-94
RESOLUTION
AUTHORIZING EXECUTION OF AN ILLINOIS CASH FARM LEASE AGREEMENT
(Elgin Regional Park Property)
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
Olufemi Folarin, City Manager,be and is hereby authorized and directed to execute a written lease
agreement for farming with Robert Gehrke for the premises commonly known as Elgin Regional
Park-Pollnow farm consisting of 224 acres, Elgin, Illinois, a copy of which is attached hereto and
made a part hereof by reference.
s/Ed Schock
Ed Schock, Mayor
Presented: April 9, 2008
Adopted: April 9, 2008
Omnibus Vote: Yeas: 6 Nays: 0
Attest:
s/Diane Robertson
Diane Robertson, City Clerk
Illinois Cash Farm Lease
To use this lease form: Complete two identical copies—one for the Lessor(Landowner)and one for the Lessee(Tenant).Cross out any provisions
that are not to become a part of the contract and add any additional provisions that are desired.if preparing the lease manually,use ink or typewriter;
however,the web-based lease form can be filled in on-line before printing. This lease form is available on the farmdoc tivebsite at
<http://lviviv.farmdoc.uiuc.edullegallfarm_lease forms_abs.html>.Additional leasing information can be found in the Leasing Fact Sheets prepared by
University of Illinois Farm Business Management Educators located at<http:i/ivuir farmdoc.uiuc.eduimanage/leasing_fact_sheets.html>. Note:A lease
creates and alters legal rights;thus,Landowners and Tenants may want to discuss specific lease provisions with their respective legal advisors.
Date and names of parties.This lease is entered into on March 26,2008 between:
Lessor(s):City of Elgin,Illinois,Whose mailing address is 150 Dexter Court,Elgin,iL 60120,
and
Lessee(s):Robert Gehrke whose mailing address is 12N860 Rte 20,Elgin,IL 60124,
and whose Social Security Number or Employer Identification Number is 350-46-1186
The parties to this lease agree to the following provisions.
Section 1. Description of Rented Land and Length of Tenure
A. Description of Land. The Landowner(Lessor)rents and leases to the Tenant(Lessee),to occupy and to use for
agricultural purposes only,the following real estate located in the County of Kane and the State of Illinois,and described as
follows: Elgin Regional Park, commonly known as the Pollnow farm and consisting of approximately 224 acres,together
with all improvements thereon belonging to the Lessor, except
B. Length of tenure.The term of this lease shall be from March 26,2008,to December 1, 2008, and the Lessee shall
surrender possession at the end of this term or at the end of any extension thereof. Extensions must be in writing and attached
to this lease,and both parties agree that failure to execute an extension at least 2 months before the end of the current term
shall be constructive notice of intent to allow the lease to expire.
Section 2. Fixed Cash Rent (With Option for Indexing)
Tenant agrees to pay Landowner annual fixed cash rent as identified below; however, if the"option for indexing" is also
completed,the rent shall be adjusted as described in the option for the years following the first year.
Fixed Rent:The annual cash rent shall be the sum of$51,250. This represents 224 acres of cropland at$230.00 per acre,
plus NA acres of NA at$ NA per acre,plus
NA acres of NA at$ NA per acre,plus
NA
Optionfor-1ndexkgw After the first year,the annual cash rent for a pai4ioular-lease year-shall be the Fixed Ren!identi
above but adjusted annually after the first year as f 11.ws
s ,
Extension Educator. The editors express appreciation to other University of Illinois Extension Farm Business Management
and Marketing Educators for their assistance with this form.
Section 2 (Alternate). Flexible Rent Using Option 1, 11, or III
Note: Strike either Section 2 or Section 2(Alternate). The cash rent can be flexible and change each crop year.A base rent can be established and adjusted
based upon yield and/or price fluctuations. The factors to be used in adjusting the rent in Options I and II must be listed below.
Base cash rent Base yield Base price Min.cash rent Max.cash rent
Crop(s) (per acre) (bu orton/acre) (per bu or per ton) (per acre) (per acre)
The current price for the current year shall be the average price at close of day based on the following time period(s)and locations(s):
Crop(s) Price source
Day Month through Day Month at
Day Month through Day Month at
Day Month through Day Month at
A. For each lease year,the per-acre base cash rent for each crop shall be adjusted at the close of the cropping season by one of the following methods:
OPTION I—FLEXING FOR PRICE ONLY
Crop(s) Base rent x(Current price)Base price) =Rent/acre' x Acres grown =Adj.Rent for year
$— x$ _$ x =$
$ x$ _$ x =$
$ x$ _$ x =$
Total all crops =$
OPTION 11—FLEXING FOR PRICE AND YIELD
Crop(s) Base rent x(Current price) x(Current yld2) =Rent/acre' x Acres grown =Adj.Rent for year
Base Price) Base yld)
$— x$ x$ _$ x =$
$ x$ x$ _$ x =$
$ x$ x$ _$ x =$
Total all crops =$
OPTION III—OTHER PROCEDURE TO BE USED
B. Additional Rent for Inflexible items(complete at beginning of lease period)
Pasture $
Hay land $
Other inflexible cropland $
Timber,wasteland $
Farmstead $
TOTAL INFLEXIBLE RENT $NA
C. TOTAL RENT FOR YEAR: Sum the Flexible cropland rent(calculated from Part A,Option 1, 11 or 111)and the Total Inflexible Rent(from Part B).
$NA
'If calculated figure is less than"Min.cash rent"in"Basic Information,"use the set minimum.If calculated figure is more that"Max cash rent"in"Basic
Information,"use the set maximum.
2 The current yield shall be the"farm"yield for the current lease year.
Page 2,Cash Lease—Farmdoc Form CL 0 1-0912
Section 3. Investments and Expenses
A. The Landlord agrees to furnish the property and to pay
the items of expense listed below:
1. The above-described farm, ineluding fixed-
B. The Lessee agrees to furnish the property and to
�ffits' pay the items of expense listed below:
z' 1. All the machinery,equipment, labor, fuel,and
.,. °„tom r.,1...;1.7;,,.. ",.7 permanent fences°~. ° greed+^,~ Rn s and and amendments-4o ane e power necessary to farm the premises properly.
thk aeasR 2. The hauling to the farm,except when otherwise
3. Skilled labor-employed in making and repairin agreed, of all material which the Lessor furnishes
' °„+.. ..,,.7 all 1aL..,r for-.,a;.,r;.,^
for making repairs and minor improvements,and
the performing of labor,except skilled,required
�$ for such repairing and improving.
4. Taxes on land, improvements, and personal 3. All seed, inoculation,disease-treatment
property owned by the Lessor. materials,and fertilizers, except that which the
5 Fire and wind;~ ° at a f;r r°~larsem°~t Lessor agrees to furnish above.
value, on the r-esidenee and all buildings owned 4. The following described items and all other
by the Lessor-and used by the in
items of expense not furnished by the Lessor as
or-housiog grain, feed, livestook and equipmepw provided in A:
6. Ground limestene: Lessor-is to fufflish
:::�ereent or-share of total oost, inehtdiffg
hauling and spreading.
7. A water supply adequate for household use and
al units of liyestook
8. Other-items
Section 4. Tenant's Duties in Operating Farm
The Tenant further agrees to perform and carry out the stipulations below. (Strike out any not desired.)
A. Activities required:
t. To cultivate the farm faithfully and in a timely, they may be~..t by the Lesser during the term^f
thorough,and businesslike manner. the lease ^rain°r-y wear, less by fire ^r
2. To prevent noxious weeds from going to seed on
said premises and to destroy the same and keep 7. To take proper of all trees Yines, ~7
the weeds and grass cut. shrubs, and to~ °~' '^'"°same.
3 To haul and spread all fnanur-e on appropriate 8. To keep the farmstead neat and orderly.
fields at times and ' quantities eensistent with 9. To prevent all unnecessary waste,or loss, or
damage to the property of the Lessor.
4. To keep open dit,."°s the drains,the^"*'°.° 10. To comply with pollution control and
a;er'a`s and t°'""°°° in good re i
13111 environmental protection requirements as
5. To preserve established watercourses or ditches, required by local, state, and federal agencies,as
and to refrain from any operation that will injure well as to implement soil erosion control
them. practices to comply with the soil loss standards
y To keep the building,f~ s(inel..,7;~^hedges) mandated by local,state, and federal agencies.
and other-improvements in ood repair°~� i i. To use prudence and care in transporting,
condition as they a when the Tenant t storing,handling, and applying all fertilizers,
or-in as good Fepair-and condition as pesticides,herbicides, and other chemicals and
Page 3,Cash Lease-Farmdoc Form CL 0 1-0912
similar substances;to read and follow label ground and clearly marked.No chemicals or
instructions for the use of such materials in order chemical containers will be disposed of on the
to avoid injury or damages to persons or property property.
or both on the leased premises and adjoining 14. To generally follow Natural Resource
areas;and to comply with state pesticide Conservation Service and Farm Service Agency
training, licensing, storing,and usage. recommendations and to maintain all other
12. Any chemicals for weed or insect control or requirements necessary to qualify current and
other use,when used,should be applied at levels future farm operators to participate in federal
not to exceed the manufacturer's farm programs.
recommendation for the soil types involved. The 15. Other:
Tenant agrees to provide to the Lessor, annually,
a written report indicating the product name,
amount,date of application and location of
application of all pesticides, fertilizers,and seed
used on the farm.
13. No chemicals will be stored on the property for
more than one year. When chemicals or
petroleum products are stored on the farm,they
will be only those planned to be used on the farm
and they will be in closed,tight containers above
B. Activities restricted.The Tenant further agrees,unless the written consent of the Lessor has been obtained:
1. Not to assign this lease to any person or persons 8. Not to erect or permit to be erected any
or sublet any part of the premises herein leased. commercial advertising signs on the farm,other
2. Not to erect or permit to be erected any structure than seed variety signs.
or building or to incur any expense to the Lessor 9. Not to enter into any agreement,contract,or
for such purposes. other farming or business arrangement that alters
3. Not to add eltae rieal ;'A';..;n, ..,,,,,bin rights in the Lessor's security interest,right of or-
heating to an),building. (if,.ense„t is given .eh entry, default or possession.
additions must meet standards and requirements 10. Not to permit,encourage,or invite other persons
of power and insur-anee eempanies.) to use any part or all of this property for any
4. Islet to plow permanent pasture or-meadowland. purpose or activity not directly related to its use
5. Not to allow aRy steek on ,n„tillable land for agricultural production,except as specifically
exr.ept by annual agr-eemew-. noted here:
6. Not to burn or remove cornstalks, straw,or other
crop residues grown upon the farm.
H. Other:
7. Not to cut live trees for sale purposes or personal
uses.
Section 5. Management and Business Procedures
The Lessor and Tenant agree that they will observe the following provisions(Strike out any not desired.)
A. General Cropping System. Except when mutually B. Insurance. For the term of the lease,Tenant shall
decided otherwise,the land use and cropping shall be maintain insurance with a carrier acceptable to the
approximately as follows: Landlord, insuring Tenant while performing on these
224 acres for rotated crops premises hereunder for the following types and in
0 acres in permanent pasture stated minimum amounts:
0 acres in non-grazed woodland
0 acres in building and lots
0 acres in other
Page 4, Cash Lease—Farmdoc Form CL 0 1-0912
Crop Insurance $531.45 per acre 3.
Liability
Insurance: $1,000 per person
$500,000 per occurrence
Property F. Land use in last year of lease. If,during the last
Damage: $14,000 per occurrence
six months of the lease term,or after notice to
Workers Compensation: As required by statute terminate has been given if this lease has become a
Tenant shall furnish Landlord with a Certificate of year to year lease,the parties fail to agree on questions
Insurance and give notice of termination of coverage. of land use,cropping system, fertilizer applications,or
Tenant agrees that all applicable insurance policies name any deviations from the lease provisions,then the
the Landlord as an additional insured specific agreements in this lease shall prevail or, in the
absence of agreements in the lease,the Lessor shall
decide and the Tenant agrees to abide by the Lessor's
decisions. The Lessor's decisions shall not contradict
r e such f>,fms as the Lessor vide any provisions in this lease or violate good farming
OFe procedures.
befer°
D. Cash Rent Installments. The cash rent shall be G. Conservation. Both Lessor and Tenant affirm the
paid each year in the following installments: goals of minimizing soil erosion losses and preserving
Dollars or percent Date Due the productivity of the land in ways that are consonant
of rent due with their needs and desires for acceptable current
$25,625.00 May 1,2008 returns to their individual inputs on the leased premises.
$25,625.00 November 1,2008 To these ends they agree to implement as far as possible
the best management practices recommended by the
Natural Resource Conservation Service and to cooperate
with that agency's soil and water conservation programs.
Balance Due H. Tenant responsible for hired labor.The Tenant
shall be solely responsible for all employer obligations
FE. End aef'p-are reimbu raelvie Ms..4 t the end of this on hired labor with respect to safety requirements and
lease the Lesser agrees to re;,, bufse the Tenant: social security and workers'compensation contributions,
and the Lessor shall have no responsibilities therefore.
t C..r the Tenant's f ,.ter;., 1;...est.,..e The
1.Fefth r fn shall he t in lby
imestone. I. Other management agreements:oest
de„ ;at;.,..the Tenants„et eest at the rare of
t annually.
7 For-the Tenants oost of soluble phosphate R20-s4
and 77
f ..ra;«;„the last year of this lease minus the amount
of these plant food elements Valued at the same fates,
contained in the Tenant's sha of these eF
Section 6. Default, Possession, Landlord's Lien, Right of Entry,
Mineral Rights, Liability, Extent of Agreement
The Lessor and Tenant agree to the following provisions.(Strike out any not desired.)
A. Termination upon default. If either party fails to carry out condition as when they were entered upon by the Tenant,loss by
substantially the terms of this lease in due and proper time,the lease fire,flood,or tornado,and ordinary wear excepted.If the Tenant
may be terminated by the other party by serving a written notice fails to yield possession,the Tenant shall pay to the Lessor a penalty
citing the instance(s)of default and specifying a termination date of of$ per day or the statutory double rent,whichever is less,
30 days from the date of such notice.Settlement shall then be made for each day the Tenant remains in possession thereafter,in addition
in accordance with the provisions of Clause B of this section,the to any damages caused by the Tenant to the Lessor's land or
reimbursement agreements of Section 5,and any amendments to this improvements,and said payments shall not entitle the Tenant to any
lease. interest of any kind or character in or on the premises.
B. Yielding possession.The Tenant agrees at the expiration or C. Landlord's lien.The Landlord's lien provided by statute on
termination of this lease to yield possession of the premises to the crops grown or growing,together with any other security
Lessor without further demand or notice,in as good order and agreement(s)created by Tenant in favor of landlord,shall be the
security for the rent herein specified and for the faithful performance
Page 5,Cash Lease—Farmdoc Form CL 0 1-0912
of the terms of the lease.The Tenant shall provide the Lessor with D. Landowner's right of entry.The Lessor reserves the right
the names of persons to whom the Tenant intends to sell crops grown personally or by agents,employees,or assigns to enter upon the
on these premises at least 30 days prior to the sale of such crops.A premises at any reasonable time to view them,to work or make
lesser period may be allowed by mutual written agreement. Tenant repairs or improvements thereon,to care for and dispose of the
consents to any filing required by law to perfect the statutory Lessor's share of crops,to develop mineral resources as provided in
landlord's lien upon crops.If the Tenant fails to pay the rent due or Clause E below,or,after constructive notice has been given that the
fails to keep any of the agreements of this lease,all costs and lease may not be extended,and following severance of crops,to
attorney fees of the Lessor in enforcing collection or performance plow and prepare a seed bed,apply fertilizers,and any other
shall be added to and become a part of the obligations payable by the operation necessary to good farming by the succeeding operator,
Tenant. these operations not to interfere with the Tenant in carrying out the
regular farming operations.
E. Mineral rights.Nothing in this lease shall confer upon the
Tenant any right to minerals underlying the land.Such mineral rights
are hereby reserved by the Lessor together with the full right to enter
upon the premises and to bore,search,excavate,work,and remove
the minerals,to deposit excavated rubbish,to pass over the premises
with vehicles,and to lay down and work any railroad track or tracks,
tank,pipelines,power lines,and structures as may be necessary or
convenient for the above purpose.The Lessor agrees to reimburse
the Tenant for any actual damage the Tenant may suffer for crops
destroyed by these activities and to release the Tenant from
obligation to continue farming this property when development of
mineral resources interferes materially with the Tenant's opportunity
to make a satisfactory return.
F. Landowner liability.The Tenant takes possession of the
leased premises subject to the hazards of operating a farm,and
assumes all risk of accidents personally as well as for family,
employees,or agents in pursuance of farming operations,or in
performing repairs on buildings,fences,tile,and other
improvements.
G. Binding on heirs, etc.The terms of this lease shall be
binding on the heirs,executors,administrators,and assigns of both
Lessor and Tenant in like manner as upon the original parties.
Section 7. Additional Lease Provisions
Regarding Section 6-E,Lessor agrees to reimbursement Tenant$700 per acre for any crop damage done by Lessor or its agents.
Signatures of parties to lease: �f
City of Elgin Landowner 7 �y a8 Date
B, 1WX4 sips Landowner Date
Oluf i Folarin, C'ty Manager
By Agent / Date
Tenant ��'(� 'L g Date
Robert Gehrke
Tenant Date
Page 6,Cash Lease—Farmdoc Form CL 0 1-0912
March 21, 2008
TO: Mayor and Members of the City Council '
FROM: Olufemi Folarin, City Manager
Randy Reopelle, Parks & Recreation Director %\
SUBJECT: Farm Lease for the Elgin Regional Park
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City Council with
information to consider entering into a lease agreement for farming of the Elgin Regional Park
property.
RECOMMENDATION
It is recommended that the City Council approve the farm lease in the amount of$51,250 with
Mr. Robert Gehrke for the farming of the Elgin Regional Park and direct the City Manager to
sign the agreement.
BACKGROUND
In the fall of 2005, the City purchased a 224 acre parcel of land at the intersection of Plank Road
and Muirhead Road for the purpose of developing a regional park. Since that time, the City has
entered into an agreement with Hey & Associates to provide engineering services for the park
site. The preliminary engineering report was completed and presented by Hey & Associates to
City staff in December of 2006.
Based on the preliminary engineering report, the concept plan was modified and a new concept
plan was created. Hey and Associates is now assisting the City with the permitting process
which is estimated to take another eight to 12 months.
Given these factors, staff is recommending that the City enter into a farm lease for the Regional
Park property for 2008. A request for proposal was sent out to farmers in the area of the
Regional Park and two qualified proposals were received by the City. Staff recommends
entering into an agreement with Mr. Robert Gehrke, whose proposal would provide the highest
revenues to the City, totaling $51,250. Mr. Gehrke lives east of the Regional Park and farms the
land that is adjacent to the east side of the park.
Farm Lease for Regional Park
April 20, 2007
Page 2
COMMUNITY GROUPSANTERESTED PERSONS CONTACTED
None
FINANCIAL IMPACT
Revenues totaling $51,250 will be recognized from the proposed lease agreement and be credited
to the Riverboat Fund, Regional Park, account number 275-0000-546.02-00, Rental.
LEGAL IMPACT
None
ALTERNATIVES
1. The Council may choose to approve the farm lease with Mr. Robert Gehrke for the
farming of the Elgin Regional Park.
2. The Council may choose not to approve the farm lease with Mr. Robert Gehrke for the
farming of the Elgin Regional Park.
Respectfully submitted for Council consideration.
rr
Attachment