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HomeMy WebLinkAboutResolution - 2471 - Lease Agreement - D Jones Et Al - Sewage Effluent Farm Land, 300 Acres - 11/13/1986J'WF : da RESOLUTION Resolution #2471 November 13, 1986 Agenda Item #25 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an agreement between said City (as Lessee with option to purchase) and Delwin Jones and wife, Reta A. Jones, George W. Tate, Jr. and wife, Mary K. Tate, David S. Enger and wife, Verna R. Enger, Mary Ellen Jones, a widow, Pat Farris and wife, Ann Farris (as Lessors and Grantors of an Option to Purchase unto said City) concerning approximately 300 acres of land in Lubbock County, Texas, which land is to be utilized for the growing of crops and other agricultural purposes which lend themselves to irrigation by sewerage effluent waters, attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be'a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 13th day of November 1986. B. C. McMINN, MAYOR ATTEST: ne-tte Boyd, City Sec`ret'ary APPROVED AS TO CONTENT: am Wah 114etor of Water ilities APPROVED AS TO FORM: J.=torney h Fullingim, Assista Cit LEASE/AND OPTION TO PURCHASE CONTRACT STATE OF TEXAS § COUNTY OF LUBBOCK § Delwin Jones and wife, Reta A. Jones, George W. Tate, Jr. and wife, Mary K. Tate, David S. Enger and wife, Verna R. Enger, Mary Ellen Jones, a widow, and Pat Farris and wife, Ann Farris, being the owners of the property involved in this contract herein collectively called "Lessors" do hereby contract and agree with the City of Lubbock, a home rule municipal corporation located in Lubbock County, Texas, herein called "City", as follows, to wit: I. Lessors agree upon the terms and conditions as here- inafter set forth to lease and hereby do lease unto City ap- proximately 300 acres of land located in Lubbock County, Texas described in Exhibit A attached hereto which descrip- tion of said 300 acres of land is incorporated herein by reference as if fully copied in detail in this place. II. The term of this lease is for a term of five (5) years beginning January 1, 1987 and ending December 31, 1992. This is a cash payment lease, and the City shall make an annual payment to Lessors in consideration for this lease of $55.00 per acre for the approximately 300 acres hereby leased for a total annual cash lease payment of $16,500.00. Said annual cash lease payments in the amount of $16,500.00 shall be made by checks from the City payable to Pat Farris in the amount of $1,833.33 and payable to J.E.T. Farms in the amount of $14,666.67 for such total annual cash lease payments of $16,500.00, and such checks shall be mailed or delivered to Delwin Jones as receiving agent for such pay- ments at 2129 -54th Street, Lubbock, Texas 79412, or to the last known address of the said Delwin Jones for the said Lessors as their respective interests may appear. Lessors do each and all so appoint the said Delwin Jones as their t receiving agent for said annual cash lease payments for the use and benefit of Lessors as their respective interests may appear, and such payments made to the said Delwin Jones or his successor as receiving agent shall absolve the City from further liability for such payments. If the said Delwin Jones dies, becomes disabled to serve, or fails or refuses to serve as receiving agent for such annual cash lease pay- ments, Lessors shall appoint another one of them as such re- ceiving agent and forthwith notify the City Manager of the City of Lubbock the successor appointed in writing and the address where payments are to be sent to by City for the ac- count of Lessors. Delwin Jones or his successor appointee as receiving agent shall be responsible for disbursement to each of Lessors as each of Lessors interest may appear to share in each annual cash lease payment. The City may de- liver such payments to such receiving agent for Lessors or mail same to the last known address of such receiving agent as City so elects and such payment shall discharge all obli- gations of the City with respect to all Lessors as to such payment. Such annual cash lease payments shall be made on or before January 1, 1987, and on January 1st of each suc- ceeding year during the life of this lease. IV. City is allowed to sublease the property herein con- cerned to a farm operator on a share crop type lease or a cash lease basis, or the City shall have the option of hir- ing an operator to farm the property under a management type contract, it being understood that the property which is the subject matter of this lease shall be utilized for the grow- ing of crops and other agricultural purposes which lend themselves to irrigation by sewerage effluent waters. V. Lessors cannot assign, transfer, or convey their inter- est in this agreement without the express written consent of the City Manager of the City of Lubbock. -2- VI. In consideration of the sum of Ten and No/100 ($10.00) Dollars and other good and valuable consideration paid to Lessors by City receipt of which is hereby acknowledged and confessed by Lessors, City shall also have the option during the term of this lease to purchase the fee simple title to the land hereby leased from Lessors at a price to be negoti- ated between City and Lessors for the approximately 300 acres of land involved in this lease. If the City desires to exercise this option to purchase, City shall give Lessors thirty (30) days written notice by Certified United States mail to such effect addressed to the receiving agent for an- nual cash lease payments at his last known address. Such thirty (30) day notice shall be mailed before the expiration of the term of this lease. If City exercises such option, City shall be obligated to purchase said land only if a pur- chase price has been mutually agreed upon between City and Lessors and good and merchantable title can be furnished by warranty deed from Lessors unto City with title policy in amount of purchase price being furnished to City by Lessors at Lessors' expense with no exceptions for liens or encum- berances which would render title to the property unmer- chantable and/or defective. In the event City has not exercised its option to purchase, as above set forth, then in such event, if Lessors desire to sell the property which is the subject matter of this lease, during the term of this lease, Lessors shall tender to City the right of first refusal to purchase said property. If the City desires to purchase said property under said right of first refusal, City shall be obligated to purchase said property only if Lessors can convey merchantable title without title defects to City by warranty deed and furnish to City at Lessors' expense a title policy in the amount of the purchase price for said property without any exceptions in said title policy for liens or -3- encumberances which would render the title to said property unmerchantable or defective. VII. Consistent with the purposes stated in numbered Section IV of this lease, City agrees to use its best efforts to farm the land herein involved or cause same to be done in a workmanlike manner, and to use its best efforts to maintain crop allotments in good order with the programs for agricul- ture as same exist with the United States Department of Agriculture during the life of this lease. VIII. Either Lessors or City may at its election cancel this agreement by giving six (6) months written notice to such effect to the other party prior to January 1, 1989, or six (6) months written notice to such effect to either party prior to any succeeding January Ist of any succeeding year during the life of this lease. Such notice shall be mailed by Lessors or City to the other party by Certified United States mail to the last known address of Lessors' receiving agent for annual cash lease payments hereunder, or to the City Manager of the City of Lubbock, P. 0. Box 2000, Lubbock, Texas 79457, or to the last known address of said City Manager. IX. City shall have the use of the three irrigation wells on the land herein involved, two of which are equipped with pumps. City shall maintain the wells and pumps so long as feasibly economically maintainable, but the City shall be under no duty to replace irrigation wells if they sand down, the water table drops, or they otherwise become inoperable, and neither shall the City be under a duty to replace pumps which are worn out or cannot be feasibly and/or economically repaired. X. Lessors retain the right to use the barn and other out- buildings located on the land for storage purposes, and also -4- to store farm equipment and other personal property on premises, and have ingress and egress to accomplish such purposes so long as the land remains under lease from Lessor to City. If the City purchases the land under its option to do so as hereinabove set forth, and effects the purchase of the land by warranty deed, then after such purchase the Lessors shall have the right to remove the barn and other outbuildings and farm equipment and other personal property stored on the premises, all as the personal property of the Lessors so long as such removal is accomplished within one (1) year after the date of purchase of land by the City, and any barn, outbuilding, farm equipment or personal property of Lessors remaining on the premises over (1) year after date of such land purchase shall immediately become the property of the City, and may be disposed of or retained at the premises as the City shall elect. -5- XI. Lessors and City understand and agree that the primary purpose of this lease is to allow the City the right to dis- pose of sewerage effluent upon the leased premises to irri- gate crops compatible with such waste waters. XII. This lease and option to purchase shall be binding upon the heirs, successors, and assigns of Lessors and City. �h Executed as of the day of Love, 1986. 12 Lessors: Delwin Jo G Re A. Jone I-/- eorge W. Tat , Jr. Ma R T t David S. Eng6r Verna R. Enger ; zz Mary ElP n Jones d Pat Farris 6 Ann Farris -5- CITY , n OF LUBBOCK: By: Y/OF- ( — & C ��•► B. C. MCMINN, MAYOR ATTEST: Ranet a Boyd, City Secretary AP ROVED ASS Ta C NTENT: Sam Wahl, Director o -f Water Utilities APPROVED AS TO FORM: 6 A J.th Fullingim, Ass tant City Attorney THE STATE OF TEXAS COUNTY OF LUBBOCK BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared the said Delwin Jones and wife, Reta A. Jones, known to me to be the persons whose names are subscribed to the foregoing instrument and acknowledged to me that they each executed the same for the purposes and consideration therein expressed. -- GIVE UNDER MY HAND AND SEAL OF OFFICE this 114K - day 4day of Cr— , 1986. Notary Public, Lubbock County, Texas My commission expires THE STATE OF TEXAS COUNTY OF LUBBOCK § BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared the said George W. Tate, Jr. and wife, Mary K. Tate, known to me to be the persons whose names are subscribed to the foregoing instrument and acknowledged to me that they each executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of �%l�J-� , 1986. Notary Public,"Lubbock County, Texas My commission expires-� -6- THE STATE OF TE."�A S § COUNTY OF LUBBOCK § BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared the said David S. Enger and wife, Verna R. Enger, known to me to be the persons whose names are subscribed to the foregoing instrument and acknowledged to me that they each executed the same for the purposes and consideration therein expressed. GIV�],X UNDER MY HAND AND SEAL OF OFFICE this day of ��� / , 1986. Notary Public; Lubbock County, Texas My commission expires G -` THE STATE OF TEXAS § COUNTY OF LUBBOCK § BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared the said Mary Ellen Jones, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that she executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of �� ���� . , 1986. Notary Public, L''ubbock County, Texas My commission expires- -z9/`^ THE STATE OF TEXAS COUNTY OF LUBBOCK § BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared the said Pat Farris and wife, Ann Farris, known to me to be the persons whose names are subscribed to the foregoing instrument and acknowledged to me that they each executed the same for the purposes and consideration therein expressed. GIVEIj UNDER MY HAND AND SEAL OF OFFICE this day of , 1986. Notary Pub ic, L bbock County, Texas My commission expires -7- THE STATE OF TEXAS 9 COUNTY OF LUBBOCK S BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared, B.C. McMinn, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same as the act and deed of the CITY OF LUBBOCK and as MAYOR, for the purposes and consideration therein expressed and in the capacity therein stated. 64 GIVEN UWER MY IAND AND SEAL OF OFFICE this clay of �` /�GQQ /�- , 1986. Notary Public, Lubbock Cognty, _ Texas Q/r'U/Q- /-? J'obs My commission expires /l I -8- Beginning at the Northwest corner of Section 5, Block S; said point also being the Northeast corner of Section 5 1/2, Block S; Thence East along the North Line of Section 5, Block S a distance of 2640+ feet to a point in the 1/2 Section Line of Section 5, Block S; Thence South along the 1/2 Section Line of Section 5, Block S a distance of 3603.3 + feet to a point; Thence West a distance of 3626.4+ feet to a point in the West Line of Section 5 1/2, Block S having crossed the West Line of Section 5, Block Sat a distance of 2640.3 + feet (same point being in the East Line of Section 5 1/2, Block S); Thence North along the West Line of Section 5 1/2,.Block S a distance of 3603.3+ feet to a point, said point being the Northwest corner of Section 5 1/2, Block S; Thence East along the North Line of Section 5 1/2 Block S a distance of 986.1+ feet to the point of beginning, said point being the Northeast corner of Section 5 1/2, Block S and also being the Northwest corner of Section 5, Block S; Said above described tract contains 300+ Acres. i Beginning at the Northwest corner of Section 5, Block S; said point also being the Northeast corner of Section 5 1/2, Block S; Thence East along the North Line of Section 5, Block S a distance of 2640+ feet to a point in the 1/2 Section Line of Section 5, Block S; Thence South along the 1/2 Section Line of Section 5, Block S a distance of 3603.3 + feet to a point; Thence West a distance of 3626.4+ feet to a point in the West Line of Section 5 1/2, Block S having crossed the West Line of Section 5, Block Sat a distance of 2640.3 + feet (same point being in the East Line of Section 5 1/2, Block S); Thence North along the West Line of Section 5 1/2,.Block S a distance of 3603.3+ feet to a point, said point being the Northwest corner of Section 5 1/2, Block S; Thence East along the North Line of Section 5 1/2 Block S a distance of 986.1+ feet to the point of beginning, said point being the Northeast corner of Section 5 1/2, Block S and also being the Northwest corner of Section 5, Block S; Said above described tract contains 300+ Acres.