HomeMy WebLinkAbout#06 - Farm LeaseSTAFF REPORT
DATE: April 7, 2020
CONSENT
AGENDA ITEM: Keene Farm Lease 2020
SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND:
When the city acquired 180 acres in 2019 from 3M, it was being farmed by Keene Farms LLC. They had
been farming the land since 2006.
ISSUE BEFORE COUNCIL:
Should the Council approve a one year lease with Keene Farms LLC?
PROPOSAL:
In your packet is a new lease drafted by Attorney Sonsalla. It allows Keene Farms LLC to farm the 180
acres the city owns near Ideal Ave. The annual rental fee is $26,000 with half the payment due in April and
half in November. The rent will go into the city’s water fund to pay the taxes on the land since the land is
considered an asset of the water fund.
Staff is only proposing a one year lease in anticipation of the city possibly selling the land for development
next year.
FISCAL IMPACT:
The rent will cover the taxes and staff time associated with the lease. Any remaining funds will stay in the
water fund.
RECOMMENDATION:
If removed from the consent agenda:
“Motion to Approve Farm Lease with Keene Farms LLC for 2020”
ATTACHMENT
• Farm Lease