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HomeMy WebLinkAbout15.D.4. Farming Agreement with Norman Shutrop \S . D. L\ CITY OF SHAKOPEE MEMORANDUM To: Mayor and City Council Mark McNeill, City Administrator From: Mark Themig, Parks, Recreation, and Facilities Director Meeting Date: May 3, 2005 Subject: Farming Agreement with Norman Shutrop INTRODUCTION City Council is asked to authorize the City Attorney to finalize a farming agreement to farm land recently acquired as park land, and to authorized appropriate city officials to enter into such agreement. DISCUSSION As part of the acquisition of the Shutrop property, I asked the Shutrops whether or not they would be interested in farming the upland 10 acres along CR16 that the city will retain in ownership. They expressed interest in doing so. Attached is a draft farming license. The agreement requires that the Shutrops pay rent in the amount of $1/year, the property taxes (estimated at $200/year), and hold a general liability insurance policy on the property. As of Friday, April 29, I had not heard back from the Shutrops on whether or not they want to farm the property given these requirements. However, given the timing of the season, the need to plant crops, and your next meeting date, I would like to have Council's authorization for Mr. Thomson to finalize an agreement and appropriate city officials to enter into the agreement, should the Shutrops agree to farm the land. If the Shutrops chose not to farm the land, I met with Mike Hullander, Public Works Supervisor, and discussed an alternative maintenance plan. This would most likely involve seeding the property and mowing occasionally until development of the park occurs. REQUESTED ACTION If City Council concurs, motion to authorize the City Attorney to finalize a farming agreement with Norman Shutrop and authorize appropriate city officials to enter into such agreement. LICENSE AGREEMENT THIS LICENSE AGREEMENT is made and entered into this _ day of , 2005, by and between CITY OF SHAKOPEE, a municipal corporation under the laws of Minnesota, having its principal office at 129 South Holmes Street, Shakopee, MN 55379 ("City"), and Norman Shutrop and Janet Shutrop, husband and wife, residing at 6865 Eagle Creek Boulevard, Shakopee,Minnesota 55379 ("Shutrops"). WHEREAS, the City acquired certain real estate in the City of Shakopee, County of Scott, State of Minnesota, which is legally described on the attached Exhibit A and incorporated in this License Agreement (the "Property") for park and other purposes; WHEREAS, prior to the City owning the Property, the Shutrops had conducted farming operations on the Property; WHEREAS, the City has agreed to allow the Shutrops on the Property for the purposes of conducting farming operations until the City is ready to utilize the Property for park and/or other purposes; and NOW THEREFORE, the parties agree as follows: 1. Access. The City grants to the Shutrops, with respect to such title and interest as the City may have in the Property, and upon the terms and conditions stated below, on a revocable, non- exclusive basis, the permission and right to access and use the Property for Farming Operations. "Farming Operations" are defined exclusively as the growing, producing, raising or keeping of plants or the primary products of those plants; the clearing, draining, irrigating or cultivating of the Property; the use of farm machinery, equipment or devices; or the application of fertilizers, manure, pesticides or biological control agents by ground spraying. The Shutrops shall not construct any structures or improvements on the Property without the written consent.ofthe City. Such right of access and use is granted only for the term of this License as set forth below, and only for the purposes set forth above. 2. Term. This License shall terminate upon the City giving the Shutrops actual written notice of such termination at least ninety (90) days prior to termination. The Shutrops may terminate this License by giving the City actual written notice of such termination at least thirty (30) days prior to actually vacating the Property. 3. License Fee. The Shutrops shall pay a license fee to the City of$I.00 prior to entry upon the Property. 4. Safety and Maintenance. The Shutrops agree to: a) keep the Property in a sightly condition at all times, at the Shutrops' sole expense; b) keep the entire Property free from all rubbish, waste, dirt, debris and obstructions of any sort; c) keep the Property. in a condition as required by law, including by the ordinances of the City of Shakopee. The Shutrops also agree not to use the Property for the production, storage, deposit or disposal of toxic, dangerous or hazardous substance pollutants, wastes or contaminations, including but not limited to, nuclear fuel or wastes or wastes that are considered hazardous by law and regulations. To the fullest 262038vl(SJS) 1 SH155-23 extent permitted by law, the Shutrops shall indemnify the City, its officials, employees, agents and other acting on City's behalf, hold it harmless and defend and protect it from and against any and all loss, damage, liability, claim, cost or expense (specifically including attorneys' fees and other costs and expenses of investigation and defense), of any sort, resulting from injury or death to any person or from loss of or damage to any property, however caused, which occurs on the Property with respect to the production, storage, deposit or disposal of toxic, dangerous or hazardous substance pollutants, wastes or contaminations. 5. Hold Harmless and Indemnity. The Shutrops, their employees, agents and assigns agree to indemnify, defend and hold harmless the City, its agents, city officials, employees, successors and assigns from any and all claims, losses, damages, liabilities, causes of action, judgments, costs or expenses because of personal injury, death or property damage caused by Shutrops' use of the Property or the Shutrops' Farming Operations on the Property. 6. Insurance. The Shutrops agree to fully insure the Property throughout the term of the License Agreement and to list the City as an "additional insured" on their insurance policy for the Property. The Shutrops agree to provide and maintain at all times during the term of the License Agreement insurance coverage for the Property with a general liability policy limit of at least $500,000.00 each occurrence, applying to liability for bodily injury, personal injury and property damage. On execution of the License Agreement, the Shutrops shall provide the City with evidence that the insurance. coverage required hereunder will be in full force and effect during the License Agreement term. In the event that any insurance renews or is terminated during the License Agreement term, the Shutrops shall promptly provide the City with evidence that such coverage will be renewed or replaced upon termination with insurance that complies with these provisions. Such evidence of insurance shall be in the form of a standard Certificate of Insurance, or in other such form as the City may reasonably request, and shall contain sufficient information to allow the City to determine whether there is compliance with these provisions. At the request of the City, the Shutrops shall, in addition to providing such evidence of insurance, promptly furnish the City with a complete (and if so requested, insurer-certified) copy of the insurance policy intended to provide coverage required by this License Agreement. 7. City's Reserved Rights. The City reserves the right, at any time and from time to time, to make such use of the Property as it may desire, at its sole discretion and for any purpose. In the exercise by the City of the foregoing rights, the City will use its best efforts not to unreasonably interfere with the Farming Operations. However, the City shall not in any event be liable for inconvenience, annoyance, disturbance, or other damage to the Shutrops, or the Farming Operations, by reason of the exercise of the foregoing rights or any other rights of the City to enter into or use the Property, and the obligations of the Shutrops under this License shall not be affected in any manner. 8. Non-exclusive License. This License is issued subject to any prior licenses, easements, leases or other such rights granted by the City for improvements of other parties. The City reserves the right to license others to install improvements in, on, or under, or along the Property provided that same shall not interfere unreasonably with the Farming Operations authorized by this License. 9. Assignment. The Shutrops shall not assign, sell, delegate, sublet, or otherwise transfer or encumber in any manner whatsoever, all or any portion of the rights, duties or obligations 262038vl (SJS) 2 SH155-23 under this License. Any such transfer or encumbrance shall be null and void and shall permit the City to terminate this License immediately without written notice. 10. Costs. The Shutrops shall be responsible and timely pay all fees, taxes, wages and other charges and expenses in any manner associated with the Shutrops' activities under this License. 11. Other Authority or Rights. The Shutrops shall bear the sole obligation of obtaining such other authority or rights as they may need in addition to the rights provided in this License for the Farming Operations and the use of the Licensed Premises. 12. Not to Record. The Shutrops shall not record this License with Scott County and such recordation shall permit the City to terminate this License immediately without written notice. 13. Liens and Encumbrances. The Shutrops shall keep the Property free of all liens and encumbrances arising out of their interest in or activities on the Property. 14. Disclaimer of Warranty. The Shutrops have conducted their own investigation and inspection of the Property and are familiar with the physical condition of the Property. and surrounding terrain, and are fully informed as to the existing conditions and limitations. The City makes no representation or warranty as to the suitability of the Property for use by the Shutrops and no such representation, warranty, or any other representations are made by the City or shall be implied by operation of law or otherwise. The Shutrops accept the Property in an as-is, where-is condition with all faults, defects and deficiencies. 15. Governing Law. The parties agree that the interpretation and construction of this License Agreement shall be governed by the laws of the state of Minnesota, without regard to such state's conflict oflaws provisions. 16. Execution. The parties agree that an executed copy of this License Agreement is as effective as the original. 17. Amendment. This License may be amended only by a written amendment signed by both parties. '" 18. Relationship of Parties. Nothing in this License shall be interpreted or construed as a partnership or joint venture between the City and the Shutrops concerning the Farming Operations on the Property. This License shall not be interpreted to be any type of lease or easement to the Property and does not convey an interest in the Property to the Shutrops 19. Severance. Should any portion of this License be declared invalid and unenforceable, then such portion shall be deemed to be severed from this License and shall not affect the remainder thereof. 20. Default. If any default is made by the Shutrops in any of the agreements contained in this License, it shall be lawful for the Licensor to declare the term ended and to enter the Property, either with our without legal process, and to remove the Shutrops or any other person occupying the Property, using such force as may be necessary, without being liable for prosecution, 262038vl (SJS) 3 SH155-23 or for damages, and to repossess the Property free and clear of any rights of the Shutrops. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. CITY OF SHAKOPEE SHUTROPS By: By: Its: Mayor Norman Shutrop By: By: Its: City Administrator Janet Shutrop By: Its: City Clerk 262038vl(SJS) 4 SH155-23 EXHIBIT A [Insert Legal Description of the Property] 262038vl (SJS) SH155-23