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1996-174 ORDINANCE NO q~_O '~_/7Z]d 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 pu~oses to TTS Farming m 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 SECZION2. 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 here~n SEC'EIO2~AL That this ordinance shall become effective immediately upon its passage and approval Passed and Approved this the ~'~'t-day of ~ 1996 JA~R ATTEST JENNIFaER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY LEASE 6RD AGRICULTURAL LEASE BETWEEN THE CITY OF DENTON AND ERNEST TRIETSCH, LEWIS TRIETSCH AND TODD SMITH DBA TTS FARMING By th~s Lease, entered ~nto the 6th day of AUGUST, 1996, the C~ty of Denton, Texas, hereto called LESSOR dewses and lets TTS FARMING, herein called LESSEE, the right and prlwlege to use for agricultural purposes and for no other purposes, except as authorized hereto, the following real property located m the County of Denton, State of Texas, described as follows Approxamately 267 7 acres of land at the Denton Mumc~pal A~rport, which Is surplus to Airport needs, for agricultural purposes, as designated ~n the shaded port~ons on attached Exlub~t A, wluch ~s incorporated here~n 1 The term ofthts Lease shall be for a period of one year begmmng on the 15th day of SEPTEMBER, 1996, and endtng 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 w~th LESSOR written notme or,ts intent to renew for each addxt~onal one year term not less than 60 days prior to the end of the term ofttus Lease LESSOR shall have the right to adjust the compensat;on LESSEE ~s reqmred to pay, as set forth ~n Section 3 hereof, if LESSOR'S consultation w~th the Denton County Agricultural Extension Office reveals that the average rental price of farm land ~n Denton County has increased by more than five percent over the rent proxaded m Section 3 LESSOR shall notify LESSEE ~n wntang of any adjustment xn the rental w~thm 30 days of receipt of nottce from LESSEE 2 LESSEE agrees to dehver possession of smd land and prenuses to LFSSOR on SEPTEMBER 14, 1997 3 LESSEE agrees to pay LESSOR m cash and as part~al 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 Th~s rental shall be payable m two (2) setm-yearly installments of TWO THOUSAND THREE HUNDRED EIGHTEEN DOLLARS AND SEVENTY-FIVE CENTS ($2,318 75) each, the first installment to be ptud on or before September 15th of each year, commencmg September 15, 1996, and the second ~nstallment to be paid on or before March 1 of each year of the term of th~s Lease By September 15th of each year of the term oftbas Lease, should LESSEE have harvested any crops on the 17 7 acres described ~n 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 addtt~on to such cash payment, LESSEE agrees to perform the following services for LESSOR as cons~deratton for the Lease of smd property, to-w~t A To smooth rough land areas that are vathm the shaded portions on Exlub~t A B To remove trees and stumps that are w~tban the shaded portions on Exhibit A C To call to the attention of the City's Admamstratlve Assistant potential erosion areas on the Leased premtses and the areas that are to be mowed D To back furrow or mow a dtstance often (10) feet from all fences m order to keep grass and other vegetatton from beeormng a fire hazard 4 Land Area Available (See Exlub~t 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 A~rport Also approyamately 5 acres of usable land on the northwest s~de ofI 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 garport along Westeourt Road, as tndtcated on Exhibit A If a crop can be harvested from fins 17 7 acres of land, LESSEE is required to pay the land lease on tbas 17 7 acres If no crop ts harvested, no rental is due C garport Clear Zones 1 A~rport Clear Zones are land areas along the runway that must be clear of crops and be rnmntmned m such a way as to be smooth with no holes or large rocks in the area Parport Clear Zones are reflected on the attached Exlub~t B The distance reqmrements for Pdrport 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 tayaway 3 The infield area between the runway and tamway system cannot be utilized for agricultural purposes 4 Crops grown at the Leased premtses are restricted by the following condttions a Tall standing crops, over three feet m height, may not be grown witlun 250 feet of the runway on the west stde of the Airport b Crops may not be grown between the runway and the tayaway system TTS FARM1NG LEASE/PAGE 2 ¢ Crops may not be grown next to or ~n the VlClmty of any FAA nav~gaUonal unit or structure 5 Restrictions and L~mitatlons A The land leased should be used solely for cultivation of seasonal crops LESSEE shall conduct all cultivation and mowing m conformaty with the good soft conservation and pasture management practices B At no t~me will LESSEE or any ~nd~xadual, agent, servant or employee of LESSEE be allowed to park or leave unattended any farm equipment, tractor or velucle within 400 feet of the center hne of the runway w~tlun any runway approach area that is 500 feet from the threshold or vatban 50 feet of the edge of any tax,way or apron C At not t~me will the LESSEE or any ~nd~vldual, agent, servant or employee of LESSEE be allowed to erect, construct or build any structure of any nature, or remove or tear down any bulldtng or other improvement on the Lease property without prior written approval of the LESSOR D No new fences may be erected on the Parport property without prior written approval of the LESSOR All A;rport boundary fence hnes around the crop area will be mamtmned by LESSEE E Grazing or pastunng of ammals will not be penmtted on the Parport property or on any garport land leased for agricultural purposes F LESSEE shall not sublease any port~on of the Parport property 6 The following special con&t~ons shall govern the parties to ttus lease A It should be understood that LESSOR and the Federal Government shall have the right to use any port~on of the land for any purposes that they deem necessary The LESSOR will reqmre that the areas In question be vacated w~ttun 30 days of a written not~fieation Compensation for the recaptured land will be prorated on a per acre bas~s, plus costs of growing crops destroyed B Land designated as "Future Hangar Areas" may be used for cultivation However, ~t Is expressly understood that no compensation to the LESSEE wall be made by LESSOR for land or crops recaptured ~n these areas dunng the term of this agreement The LESSOR will require that these Future Hangar Areas comprising of apprordmately 17 7 acres shall be vacated w~tban tlurty (30) days of a written notfficaUon C The LESSOR will have access to the property leased at any time for purpose of any inspeetxon deemed expedient and for the purpose of surveying, utd~ty placement, as well as for the use as access routes to adjacent areas of the Parport or to pubhc roads TTS FARMING LEASE/PAGE 3 D Material crops and all other property of the LESSEE shall be removed from the 3arport leased land by the expiration date of tins lease E LESSEE agrees to xndemnffy, defend and hold harmless the LESSOR and tts agents, employees and representatives from all penalties arising from the violation of any ordinance, order or regulation that should occur tn the operation of the lease, as well as from and against any and all habfl~ty for all claims, stats, losses, damages or lnjunes to any person or property of any nature resulting from the carelessness, neghgence or ~mproper conduct of the LESSEE or any of its agents or employees F LESSEE agrees that ~t vall not bnng clmm or stat against the LESSOR or assign any cause of action because of an accident, fire, nmse or d~sturbance resulting from the crash of an a~rcraf~ operating m the wclmty of the A~rport, taking offor landing at the Pdrport, or occasioned by the presence and proximity of mrcraf~ parked, being fueled, taxnng or ln-/hght over the leased area G LESSEE expressly agrees to dehver portions of such property to the LESSOR as LESSEE'S crops are removed Any crops remarmng on the leased premises on September 14, 1997, shall become the property of LESSOR H Further, LESSOR assumes no responstbfllty ofhabfl~ty for harm, injury or any damagtng events winch are d~rectly or indirectly attributable to premise defects or condtt~ons winch may now exJst or may hereafter arise upon the premises, any and all defects being expressly watved by LESSEE Executed tins the 6th day of August, 1996 CITY OF DENTON, TEXAS, LESSOR ~ED BENAVIDES, CITY MANAGER ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L POUTY, CITY ATTORNEY TTS FARMING LEASE/PAGE 4 TTS FARMING ERNEST TRIETSCH, LESSEE ~ODD SMITH, LI~SSEE TTS FARMING LEASE/PAGE 5 (! o~: 2) DATE AUGUST 24, 1996 CL~ORT TO Mayor and Members of the City Council FROM Ted Benavldes, City Manager SUBJECT BID//1919 - LEASE OF AGRICULTURAL LAND AT MUNICIPAL AIRPORT RECOMMENDATION. We recommend this bid be awarded to the highest bidder, TTS Farming, (Ernest Tnetsch, Lewis Tnetsch 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 BACKGROI. I]g~ Tabulation Sheet PROGRAMS.. DEPARTMENTS OR GROUPS AFI~ECIED~ Airport Operations FISCAL IMPACT. The revenues generated from this land lease will be applied to General Fund Revenue Respectfully submitted Ted Benavldes City Manager Approved Name Tom D Shaw, C P M Title Purchasing Agent 754 AGENDA BID # 1919 ~ TTS FARMING DONALD tBID NAME LEASE OF AGRICULTURAL TRIETSCH, PADDOCK i LAND AT AIRPORT TRIETSCH,  PE~N DATE JULY 11, 1996 & SMITH ~ ~ESCm~:ior~ w~o~ ~ ~V~NDO~ ~ yEN~O~ VENbO~ V~NDO~ LEASES OF LAND FOR AGRICULTURAL PURPOSES $18 55 AC $18 00 AC