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TO: Mayor Richard C. Irvin
FROM: Ian Wade, Capital Projects Manager
DATE: May 14, 2019
SUBJECT:
A resolution to enter into a Farm Lease Agreement with Galusha Farm, LLC, 27 W 217 Galusha Road, Warrenville, Illinois 60555, for 19.5 tillable acres of farm land located near the southeast intersection of Liberty Street and Sartor Lane.
PURPOSE:
To enter into a Farm Lease Agreement to provide access to City-owned farm land to Galusha Farm, LLC at a compensatory rate of $30 per acre to be paid to the City each time the crop, which is presumed to be hay, is harvested.
BACKGROUND:
In late 2018, the City of Aurora purchased a vacant 24 acre parcel of land located near the southeast intersection of Liberty Street and Sartor Lane for the purpose of building a Public Works Facility. At the time of purchase Galusha Farm, LLC was harvesting hay from the parcel as well as the adjoining parcel to the west. In an effort to promote farming, generate revenue for the City, and prevent the City of Aurora from having to expend resources on cutting the fields for weed control, a lease of the parcel, which includes 19.5 acres of tillable farm land (approximated in the attached map), has been offered to Galusha Farm, LLC.
Based on discussions with Kane County Forest Preserve, it has been determined that the 2019 standard rate for a Farm Lease Agreement of this type is $120 per acre for the year. Based on this rate and an assumed four (4) annual cuttings/harvests of hay, this agreement establishes a commitment by Galusha Farm, LLC to pay the City $30 per acre upon each harvest. While four (4) harvests would then result in payment to the City equal to the standard rate of $120 per acre for the year, unfavorable conditions (weather, etc.) yielding less than four total hay harvests would result in a subsequent, proportionate reduction to the total amount of rent paid to the City.
The base term of this Farm Lease Agreement is one (1) year with the option for up to five (5) additional one (1) year terms by written agreement of both parties.
DISCUSSION:
The execution of this Agreement which appears to be mutually beneficial to both the Lessee and the City as it promotes productive, profitable utilization of local land by an Illinois-based farming company while generating revenue for the City on otherwise vacant land.
IMPACT STATEMENT:
Assuming four (4) harvests per year, this Agreement shall result in the generation of approximately $2,340 per year in revenue for the City.
RECOMMENDATIONS:
Please forward this resolution to the Finance Committee for their review and recommendation for approval.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution to enter into a Farm Lease Agreement with Galusha Farm, LLC, 27 W 217 Galusha Road, Warrenville, Illinois 60555, for 19.5 tillable acres of farm land located near the southeast intersection of Liberty Street and Sartor Lane.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the resultant Farm Lease Agreement for the tillable land shall generate revenue for the City in the amount of $30 per acre per year for each hay harvest up to a maximum of $120 per acre per year for a base Agreement term of (1) year with the option for up to five (5) additional one (1) year terms by written agreement of both parties.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: to enter into a Farm Lease Agreement with Galusha Farm, LLC, 27 W 217 Galusha Road, Warrenville, Illinois 60555, for 19.5 tillable acres of farm land located near the southeast intersection of Liberty Street and Sartor Lane.