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HomeMy WebLinkAbout1996-174ORDINANCE NO % 7Z Z/ A ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY OF DENTON AND TTS FARMING FOR PROPERTY LOCATED AT THE CITY OF DENTON MUNICIPAL AIRPORT, DENTON, TEXAS AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City of Denton has certain property located at the Denton Municipal Airport, Denton, Texas, and WHEREAS, the City of Denton desires to lease the property for agricultural purposes to TTS Farming in return for the payment of annual rent in the sum of eighteen dollars and fifty five cents ($18 55) per acre for approximately 267 acres, and WHEREAS, TTS Farming desire to lease the land at the airport for agricultural purposes and agree to pay to the City the request rent, NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I. That the City Manager is hereby authorized to execute a lease agreement between the City of Denton and TTS Farming, a copy of which is attached hereto and incorporated by reference herein SECTIONII. That this ordinance shall become effective immediately upon its passage and approval Passed and Approved this the 64,4,'"day of 1996 G�� JA MILLER, MAYOR ATTEST JENNI R WALTERS, CITY SECRETARY BY rti APPROVED AS TO LEGAL FORM HERBERRTT L�PROUTY, CITY ATTORNEY BY LEASE ORD AGRICULTURAL LEASE BETWEEN THE CITY OF DENTON AND ERNEST TRIETSCH, LEWIS TRIETSCH AND TODD SMITH DBA TTS FARMING By this Lease, entered into the 6th day of AUGUST, 1996, the City of Denton, Texas, herein called LESSOR devises and lets TTS FARMING, herein called LESSEE, the right and privilege to use for agricultural purposes and for no other purposes, except as authorized herein, the following real property located in the County of Denton, State of Texas, described as follows Approximately 267 7 acres of land at the Denton Municipal Airport, which is surplus to Airport needs, for agricultural purposes, as designated in the shaded portions on attached Exhibit A, which is incorporated herein 1 The term of this Lease shall be for a period of one year beginning on the 15th day of SEPTEMBER, 1996, and ending SEPTEMBER 14, 1997 LESSEE shall have the right to renew the Lease for up to four additional one year terms If LESSEE desires to renew the Lease, LESSEE shall file with LESSOR written notice of its intent to renew for each additional one year term not less than 60 days pnor to the end of the term of this Lease LESSOR shall have the right to adjust the compensation LESSEE is required to pay, as set forth in Section 3 hereof, if LESSOR'S consultation with the Denton County Agricultural Extension Office reveals that the average rental price of farm land in Denton County has increased by more than five percent over the rent provided in Section 3 LESSOR shall notify LESSEE in writing of any adjustment in the rental within 30 days of receipt of notice from LESSEE 2 LESSEE agrees to deliver possession of said land and premises to LESSOR on SEPTEMBER 14, 1997 3 LESSEE agrees to pay LESSOR in cash and as partial rental for the above described property, the sum of FOUR THOUSAND SIX HUNDRED THIRTY SEVEN AND 50/100 Dollars ($4,637 50) ($18 55 Dollars per acre for 250 acres of land) per year This rental shall be payable in two (2) serm-yearly installments of TWO THOUSAND THREE HUNDRED EIGHTEEN DOLLARS AND SEVENTY-FIVE CENTS ($2,318 75) each, the first installment to be paid on or before September 15th of each year, commencing September 15, 1996, and the second installment to be paid on or before March 1 of each year of the term of this Lease By September 15th of each year of the term of this Lease, should LESSEE have harvested any crops on the 17 7 acres described in Section 4 B , the additional rental of THREE HUNDRED TWENTY EIGHT DOLLARS AND THIRTY-FOUR CENTS ($328 34) shall be due and payable for the year prior to the harvest In addition to such cash payment, LESSEE agrees to perform the following services for LESSOR as consideration for the Lease of said property, to -wit A To smooth rough land areas that are within the shaded portions on Exhibit A B To remove trees and stumps that are within the shaded portions on Exhibit A C To call to the attention of the City's Administrative Assistant potential erosion areas on the Leased premises and the areas that are to be mowed D To back furrow or mow a distance of ten (10) feet from all fences in order to keep grass and other vegetation from becoming a fire hazard 4 Land Area Available (See Exhibit A attached) Approximately 267 7 acres of land is available for agricultural usage LESSEE as follows A Approximately 245 acres of usable land on the west side of the Airport Also approximately 5 acres of usable land on the northwest side of I L S Clear Zone west of Masch Branch Road B LESSEE may farm approximately 17 7 acres of usable land on the southeast end of the Airport along Westcourt Road, as indicated on Exhibit A If a crop can be harvested from this 17 7 acres of land, LESSEE is required to pay the land lease on this 17 7 acres If no crop is harvested, no rental is due C Airport Clear Zones Airport Clear Zones are land areas along the runway that must be clear of crops and be maintained in such a way as to be smooth with no holes or large rocks in the area Airport Clear Zones are reflected on the attached Exhibit B The distance requirements for Airport Clear Zones Are a 250 feet either side of the runway center line b 1000 feet to the south of the end of the Runway 17 c 1000 feet to the north of the end of Runway 35 2 Acres along the taxiway must be clear and unobstructed for a distance of 75 feet from the center of the taxiway 3 The infield area between the runway and taxiway system cannot be utilized for agricultural purposes 4 Crops grown at the Leased premises are restricted by the following conditions a Tall standing crops, over three feet in height, may not be grown within 250 feet of the runway on the west side of the Airport b Crops may not be grown between the runway and the taxiway system TTS FARMING LEASE/PAGE 2 c Crops may not be grown next to or in the vicinity of any FAA navigational unit or structure 5 Restrictions and Limitations A The land leased should be used solely for cultivation of seasonal crops LESSEE shall conduct all cultivation and mowing in conformity with the good soil conservation and pasture management practices B At no time will LESSEE or any individual, agent, servant or employee of LESSEE be allowed to park or leave unattended any farm equipment, tractor or vehicle within 400 feet of the center line of the runway within any runway approach area that is 500 feet from the threshold or within 50 feet of the edge of any taxiway or apron C At not time will the LESSEE or any individual, agent, servant or employee of LESSEE be allowed to erect, construct or build any structure of any nature, or remove or tear down any building or other improvement on the Lease property without prior written approval of the LESSOR D No new fences may be erected on the Airport property without prior written approval of the LESSOR All Airport boundary fence lines around the crop area will be maintained by LESSEE E Grazing or pasturing of animals will not be permitted on the Airport property or on any Airport land leased for agricultural purposes F LESSEE shall not sublease any portion of the Airport property 6 The following special conditions shall govern the parties to this lease A It should be understood that LESSOR and the Federal Government shall have the right to use any portion of the land for any purposes that they deem necessary The LESSOR will require that the areas in question be vacated withm 30 days of a written notification Compensation for the recaptured land will be prorated on a per acre basis, plus costs of growing crops destroyed B Land designated as "Future Hangar Areas" may be used for cultivation However, it is expressly understood that no compensation to the LESSEE will be made by LESSOR for land or crops recaptured in these areas during the term of this agreement The LESSOR will require that these Future Hangar Areas comprising of approximately 17 7 acres shall be vacated within thirty (30) days of a written notification C The LESSOR will have access to the property leased at any time for purpose of any inspection deemed expedient and for the purpose of surveying, utility placement, as well as for the use as access routes to adjacent areas of the Airport or to public roads TTS FARMING LEASE/PAGE 3 D Material crops and all other property of the LESSEE shall be removed from the Airport leased land by the expiration date of this lease E LESSEE agrees to indemnify, defend and hold harmless the LESSOR and its agents, employees and representatives from all penalties arising from the violation of any ordinance, order or regulation that should occur in the operation of the lease, as well as from and against any and all liability for all claims, suits, losses, damages or injuries to any person or property of any nature resulting from the carelessness, negligence or improper conduct of the LESSEE or any of its agents or employees F LESSEE agrees that it will not bring claim or suit against the LESSOR or assign any cause of action because of an accident, fire, noise or disturbance resulting from the crash of an aircraft operating in the vicinity of the Airport, taking off or landing at the Airport, or occasioned by the presence and proximity of aircraft parked, being fueled, taxiing or in-flight over the leased area G LESSEE expressly agrees to deliver portions of such property to the LESSOR as LESSEE'S crops are removed Any crops remaining on the leased premises on September 14, 1997, shall become the property of LESSOR H Further, LESSOR assumes no responsibility of liability for harm, injury or any damaging events which are directly or indirectly attributable to premise defects or conditions which may now exist or may hereafter arise upon the premises, any and all defects being expressly waived by LESSEE Executed this the 6th day of August, 1996 CITY OF DENTON, TEXAS, LESSOR BY / ED BENAVIDES, CITY MANAGER ATTEST JENNIFER WALTERSCITTY SECRETARY BY APPROVED AS TO LEGAL FORM HERBERT L POUTY, CITY ATTORNEY TTS FARMING LEASE/PAGE 4 TTS FARMING L2 ERNEST TRIETSCH, LESSEE LEWI ' TRIET CS H, LESSEE •DD SMITH, LESSEE TTS FARMING LEASE/PAGE 5 DATE AUGUST 24, 1996 TO Mayor and Members of the City Council FROM Ted Benavides, City Manager SUBJECT BID #1919 - LEASE OF AGRICULTURAL LAND AT MUNICIPAL AIRPORT RECOMAMNDATTON. We recommend this bid be awarded to the highest bidder, TTS Farming, (Ernest Trietsch, Lewis Trietsch and Todd Smith) in the amount of $18 55 per acre SUMMARY: This bid is for the agricultural lease of approximately 267 acres of land located at the Municipal Airport The land use is restricted to crop land only No grazing of livestock or construction of any type is permitted This is a one year contractual agreement renewable for four additional one year terms The estimated revenue from this lease is $4,950 00 per year BACKGROUND: Tabulation Sheet FISCAL IMPACT. The revenues generated from this land lease will be applied to General Fund Revenue Respectfully submitted Ted Benavides City Manager Approved Name Tom D Shaw, C P M Title Purchasing Agent 754 AGENDA IBID N BID NAME OPEN DATE �t _ QTY 1919 TTS FARMING DONALD LEASE OF AGRICULTURAL TRIETSCH, PADDOCK LAND AT AIRPORT TRIETSCH, JULY 11, 1996 & SMITH _VENDOR _ _ VENDOR DESCRIPTION LEASES OF LAND FOR AGRICULTURAL PURPOSES I _$18 SS AC $18 00 AC VENDOR _ VENDOR VENDOR