DEPARTMENT: Physical Development Administration
FILE TYPE: Consent Action
TITLE
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Authorization To Execute 2026 Lease Agreement For Agricultural Use Of County Property
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PURPOSE/ACTION REQUESTED
Authorize execution of a lease agreement for agricultural use of County property.
SUMMARY
Dakota County has historically leased some unimproved County-owned land for interim agricultural purposes until it can be converted to its highest and best use according to approved plans.
Lease Approach
The County Board directed staff to use a competitive sealed-bid process for leasing County-owned property for agricultural use in 2013 by Resolution No. 12-526 (October 23, 2012). The resolution authorized one-year lease terms for a sealed-bid leasing process; subsequent leases may have terms of up to three years. The resolution further directed that if the County receives no bids or receives unacceptable bids, staff was to negotiate with current tenants or others to develop one-year agricultural-use leases for those sites without an acceptable bid and that all successful bids and negotiated agricultural-use leases be presented to the County Board for review and consideration. The sealed-bid process has been successful in offering lease opportunities to more interested parties.
During the fall, Natural Resource and the Soil and Water Conservation District (SWCD) approached the Real Estate Office to discuss making changes to the tenant requirements to introduce more environmentally friendly farming practices. To accomplish this, the new proposal calls for a three-year term with requirements for committing to continual living cover and limitations on certain fertilizing chemicals. This allows for better planning of conservation practices including perennial crops or establishing cover crops after harvest of annual crops.
2026 Bids for Lease of County-Owned Land for Agricultural Use
For the 27.1-acre agricultural lease near the Empire composting facility, a Request for Bid (RFB) was placed on the County website, and a legal notice was published in the official County newspaper. The previous bidders for agricultural land leases on County-owned land were also notified. The bid opening was conducted on March 26, 2026, with the following two bids received.
Bids Received in 2026
Joe Marthaler: $17,926.55 ($220.50/acre) across all three seasons
Paul Werner: $17,705.25 ($217.78/acre) across all three seasons
For comparison, the lease rate received in 2025 was $5,326.50 or $196.55 per acre.
RECOMMENDATION
recommendation
Staff recommends that the County Board award the agricultural land lease to the highest bidder who committed to the three-year lease with environmentally friendly farming practices. Staff further recommends that if the highest bidder cannot meet the lease terms, staff then proceed to the highest bidder. If any bidder cannot meet the lease terms, then staff should negotiate with the previous renter or others for leasing the agricultural property in 2026.
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EXPLANATION OF FISCAL/FTE IMPACTS
Interim agricultural land rental revenue will be allocated to the Physical Development Administration operating budget. The Tenant will pay for each individual growing season as part of the lease agreement in years 2026, 2027, and 2028.
☐ None ☒ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, Dakota County has historically leased portions of unimproved County-owned parkland for interim agricultural purposes until it can be converted to its highest and best use according to approved master plans; and
WHEREAS, by Resolution No. 12-526 (October 23, 2012), the County Board directed staff to use a competitive sealed-bid process for leasing County-owned property for agricultural use; and
WHEREAS, the resolution authorized one-year lease terms for the initial leases and a sealed bid leasing process, and subsequent leases may have terms of up to three years; and
WHEREAS, the resolution further directed that if the County receives no bids or receives unacceptable bids, staff was to negotiate with current tenants or others to develop one-year agricultural-use leases for those sites without an acceptable bid; and
WHEREAS, all successful bids and negotiated agricultural-use leases must be presented to the County Board for review and consideration; and
WHEREAS, on March 26, 2026, two bids were received for leasing County-owned property for agricultural use; and
WHEREAS, staff recommends executing a contract with the highest bidder for the 2026, 2027, and 2028 growing seasons.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Assistant County Manager for Physical Development to execute an agricultural lease agreement with the following individual for the use of specified County land at the rates, durations, and terms described, subject to approval by the County Attorney's Office, as to form: Joe Marthaler, for a lease on no more than 27.1 acres of cropland near the Empire Composting Facility (Site 6) at a rate of $220.50 per acre each year for a total amount of $17,926.55 across all growing seasons from April 1, 2026, through December 31, 2028.
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PREVIOUS BOARD ACTION
12-526; 10/23/12
ATTACHMENTS
Attachment: Lease Site #6 Map
Attachment: RFB for Agricultural Lease Site #6 2026
Attachment: Bid - Joe Marthaler
Attachment: Bid - Paul Werner
BOARD GOALS
☐ Thriving People ☒ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Erin Stwora
Author: Eddie Buell