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<br /> STAFF REPORT <br />DATE: 3/03/2026 <br /> Consent <br /> <br />TO: City Council <br />FROM: Clark Schroeder Special projects <br />AGENDA ITEM: Farm lease for the 3M land 2026-30 <br />REVIEWED BY: Nicole Miller- City Administrator and Sarah Sonsalla-City Attorney <br /> <br />CORE STRATEGIES: <br /> <br />☐ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services <br />☐ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future <br />☐ Managed Growth ☐ Resilient Infrastructure <br /> <br /> <br />BACKGROUND: When the city acquired 180 acres in 2019 from 3M, it had been farmland for many <br />years, and the city continued to lease the land for farming in 2020 and 2021. When the city was soliciting <br />proposals for development of the property, the lease was allowed to expire, and the land was not farmed <br />for the growing seasons of 2022 and 2023. We leased the land to David See for the 2024-2025 growing <br />season after an RFP was put out to solicit the highest bidder for leasing the land. David is interested in <br />extending his lease for a 5 year term from 2026-2030 <br /> <br />ISSUE BEFORE COUNCIL: Should council approve the 2026-2030 lease with David See. <br /> <br />PROPOSAL DETAILS/ANALYSIS <br />Mr. See has done soil testing on the three main parcels of this property. Due to low PH levels, he needs to <br />apply lime to the soil. This application typically lasts for 5-6 years, hence his desire to extend the lease for <br />a total of 5 years when he makes this investment. The city has expressed interest in developing the most <br />southern most parcel first so David will not be applying lime to that parcel and requested a reduction in the <br />lease for that 15-acre section due to the poor soil conditions. Which staff have agreed to. <br />City attorney has drafted the lease to allow the city to access all the parcels to prepare for development with <br />reimbursement if we damage field crops. In addition, we can cancel the lease with 90 days’ written notice. <br />Should the termination occur during the growing season the city will reimburse the tenant for the cost of <br />the lost crops. <br /> <br />FISCAL IMPACT: The rent will be applied to the property taxes. Any remaining funds will stay in the <br />water fund. <br /> <br />OPTIONS: Approve or deny lease <br /> <br />RECOMMENDATION: <br />Move to approve 2026-2030 lease with David See Farms for the 3M property. <br /> <br />ATTACHMENTS: 2026-2030 lease with David See Farms for the 3M property.