DEPARTMENT: Physical Development Administration
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute 2025 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.
2025 Bids for Lease of County-Owned Land for Agricultural Use
For the 27.1-acre agricultural lease near the Empire composting facility (Attachment: Draft Lease
With Lease Site Map), a bid request was placed on the County website, and a legal notice was
published in the official County newspaper. Previous bidders for agricultural land leases on County owned land were also notified. The bid opening was conducted on March 27, 2025, with the following three bids received:
Bidder Annual Rent (Per Acre)
Joe Marthaler: $5,326.50 ($196.55)
Kyle Braun: $5,176.10 ($191.00)
Paul Werner: $4,315.68 ($159.25)
For comparison, the lease rate received for 2024 was approximately $4,120, or $152 per acre.
RECOMMENDATION
recommendation
Staff recommends that the County Board award the agricultural land lease to the highest bidder. Staff
further recommends that if the highest bidder cannot meet the lease terms, staff then proceed to
assign the lease contract to the next highest bidder and return it to the County Board for approval. If
any bidder cannot meet the lease terms, then staff should negotiate with the previous renter or others for leasing the agricultural property in 2025.
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EXPLANATION OF FISCAL/FTE IMPACTS
Interim agricultural land rental revenue in 2025 will be allocated to the 2025 Real Estate Office General Support fund under Physical Development Administration.
☐ 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 27, 2025, three bids were received for leasing County-owned property for
agricultural use; and
WHEREAS, staff recommends executing a contract with the high bidder in the amount of $5,326.50
for the 2025 growing season.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby
authorizes the Physical Development Director 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 $196.55 per
acre for a total amount of $5,326.50 from April 10, 2025, through December 31, 2025.
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PREVIOUS BOARD ACTION
12-526; 10/23/12
ATTACHMENTS
Attachment: Lease Site #6 Map
Attachment: RFB Dakota County Agricultural Lease Site #6 2025
Attachment: Bid - Paul Werner
Attachment: Bid - Kyle Braun
Attachment: Bid - Joe Marthaler
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