Memorandum
City of Lawrence
Utilities Department
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TO: |
Dave Corliss, City Manager
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FROM: |
Jeanette Klamm, Residuals Coordinator
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CC: |
Debbie Van Saun, Dave Wagner, Alan Landis, Frank Reeb, Bobbie Walthall, Diane Trybom,
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Date: |
March 21, 2007
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RE: |
Agenda Item Request - Approval to Lease City Property for Farming (Approximately 320 acres at WWRF)
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Please place the following item on the City Commission agenda for consideration at the next available meeting:
Project Description. Lease of approximately 320 acres of farm ground located south of the Wakarusa River at the sight of the WWRF for agricultural purposes.
Project Description/History. The City has recently purchased property for the purpose of building a wastewater treatment plant. The property has previously been used for agricultural purposes. To generate revenue as well as maintain the maximum City options for future use, the Utility Department intends to lease approximately 320 acres of the property to local farmers for agricultural production purposes on a year to year basis. Due to purchase agreements, the City is required to give “right of refusal” to a previous tract owner. Therefore, approximately 178 acres would be awarded to the highest bidder. The previous tract owner will be offered his tract (approximately 150 acres) at the highest bid price. If declined, the highest bidder will be awarded that tract also.
Project Status. A sealed bid was conducted to receive bids from interested parties to lease the property as per the City’s lease conditions. The sealed bids were opened publicly on March 20.
Project Details.
The submitted bid prices are as follows:
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Shuck Farms |
$121.00 acre |
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Pine Family Farms |
105.00 acre |
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Tom Kelly (east178 acres) |
87.00 acre |
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Tom Kelly (west 15 acres) |
94.00 acre |
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Mike Wintermantel |
92.51 acre |
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Mark Neis |
82.00 acre |
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Roger Kitsmiller (all 320 acres) |
79.00 acre |
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Roger Kitsmiller (all except Leary Brothers) |
68.00 acre |
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Allen Osborn |
70.55 acre |
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Tony Klamm (East 178 acres) |
77.00 acre |
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Tony Klamm (west 150 acres) |
87.00 acre |
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Neis Brothers Farms |
65.00 acre |
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William A Boehle |
65.00 acre |
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Keith Knabe |
55.00 acre |
A copy of the lease agreement is currently being reviewed by Legal Services.
Project Funding. The lease of the City’s approximately 320 acres will return approximately $38,700 per year to the City.
Action Request. Staff is recommending that the City Commission authorize the City Manager to enter into lease agreements with Miles Shuck (Shuck Farms) and Norman and Ralph Leary (if offer is accepted as per right of refusal conditions) for $121/acre/year payable to the City for the lease of City property.