Legislation Details

File #: DC-3360    Version: 1
Type: Consent Action Status: Passed
File created: 4/19/2024 In control: Board of Commissioners
On agenda: 5/21/2024 Final action: 5/21/2024
Enactment date: 5/21/2024 Resolution #: 24-275
Title: Authorization To Execute 2024 Lease Agreement For Agricultural Use Of County Property
Sponsors: Physical Development Administration
Attachments: 1. Draft Lease With Lease Site Map

DEPARTMENT: Parks, Facilities, and Fleet Management

FILE TYPE: Consent Action

 

TITLE

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Authorization To Execute 2024 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.

2024 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 April 3, 2024, with the following two bids received:

Bidder                                                                                                         Annual Rent                                                               Per Acre

Paul Werner                                                                                    $4,119.20                                                               $152.00

Kyle Braun                                                                                    $3,724.08                                                               $137.42

 

For comparison, the lease rate received for 2023 was approximately $6,022, or $222 per acre.

 

RECOMMENDATION

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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 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 2024.

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EXPLANATION OF FISCAL/FTE IMPACTS

Interim agricultural land rental revenue in 2024 is included in the 2024 Facilities Management Operating budget.

  ☐ 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 April 3, 2024, two 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 $4,119.20 for the 2024 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: Paul Werner, for a lease on no more than 27.1 acres of cropland near the Empire Composting Facility (Site 6) at a rate of $152.00 per acre for a total amount of $4,119.20 from April 1, 2024, through December 31, 2024.

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PREVIOUS BOARD ACTION

12-526; 10/23/12

 

ATTACHMENTS

Attachment: Draft Lease With Lease Site Map

                                          

BOARD GOALS

   ☐ A Great Place to Live                                          ☐ A Healthy Environment     

   ☐ A Successful Place for Business and Jobs         ☒ Excellence in Public Service

 

PUBLIC ENGAGEMENT LEVEL

  ☐ Inform and Listen                ☐ Discuss                               ☐ Involve                               ☒ N/A

 

CONTACT

Department Head: Taud Hoopingarner

Author: Michael Lexvold