Request for Proposal Peck Property Agricultural Lease

Request for Proposal

Peck Property Agricultural Lease

RFP # SUCO05052026

1. Premises. In Consideration of the rents and covenants hereinafter reserved, Lessor does hereby rent and lease to Lessee, and the Lessee hereby leases from Lessor the land composed of the approximate acreage located in the County set forth in the Base Lease Terms and depicted on the attached Exhibit A.

1. Term. The term of this Lease shall be for a period set forth in the Base Lease Terms. The terms “Commencement Date” and “Expiration Date” shall mean the dates set forth in the Base Lease Terms. Special attention shall be given to the Term Area Restricted Use.

1. Rent. Lessee shall pay amount to be determined by the accepted proposal for the allotted Term to Lessor due on, or no later than fifteen (15) days of contract commencement date.

1. Termination. Lessor may terminate this Lease as to all or any part of the property upon giving Lessee thirty (30) days advance written notice as set forth in the Base Lease Terms. In the event Lessor terminates this Lease without cause under this paragraph, Lessor shall return a prorated amount of rent to Lessee.

1. Insolvency. If the Lessee shall at any time during the Term of this Lease be or become insolvent, or be adjudged bankrupt, or make an assignment for the benefit of creditors, or if any sheriff, marshal, constable, or other officer takes possession of Lessee’s livestock under process of any court and such process is not stayed, quashed or bonded within thirty (30) days after the date of such seizure, then and in each of such cases it shall and may be lawful for the Lessor at its election to terminate this Lease and enter into and upon the Premises, or any part thereof, , and to have, hold, possess, and enjoy the same. Notwithstanding the foregoing rights of Lessor, Lessor shall comply with all legal requirements in exercising those rights.

1. Report. Lessee shall promptly respond to any inquiries concerning Lessees activities made by the Property Manager. Property Manager may request records documenting the good animal husbandry.

1. Payment of Taxes. As a governmental entity, Lessor has no real estate taxes due and owing on said Premises. Lessee shall take no action causing Lessor to incur any additional tax liability. Lessee shall pay all taxes due on its personal property used or kept on the Premises, and Lessee shall pay any taxes imposed by the governmental authority on rental payments or on the leasehold separate from ad valorem taxes of the real estate.

1. Use of Premises. Lessee shall use the Premises for the purpose of grazing operations and for no other purposes without the prior written consent of the Property Manager. Without enlarging or modifying the permitted use as set forth herein, Lessee shall not commit, suffer, nor allow any of the following to be done or conditions to exist on the Premises, without the prior written consent of Property Manager, which may be granted or withheld in Lessors’ sole discretion: (i) any public or private nuisance; (ii) any business, trade or activity which, in Lessors’ sole opinion, is noxious, unreasonably noisy or offensive; (iii) any action that defaces, damages or harms the Premises; (iv) the installation, maintenance, or use of any underground storage tank and/or any aboveground, leak-proof containers; (v) the entering into of any contract, including but not limited to any contract between Lessee and any vendor, processor, packager or canner, without specifically subordinating the contract to Lessors’ interest in the Lease, notifying Lessor of the contract, and providing Lessor with a copy of the fully-executed contract; (vi) planting, growing, cultivating, harvesting or selling any crop; and (vii) any conduct or condition which, in Lessor’s sole opinion, is illegal, obscene, or morally offensive but not otherwise expressly mentioned above. Items may be stored on the Premises to support Lessee’s grazing operations, such as an ATV/UTV, transport trailer, and any support vehicles. Lessee shall not store items not used in Lessee’s grazing operations on the Premises without the prior written permission of the Property Manager.

1. Ranching Practices. In addition to the agreements covered by the above sections of this Lease, Lessee further agrees to:
2. apply the principles of good husbandry at all times for the grazing operations;
3. Lessee shall be responsible for ensuring that all Lessee’s livestock are contained within the Premises and safeguarded from trespass on neighboring private property or entering any public roadway outside of the Premises;
4. Lessee shall be solely responsible for all fence maintenance and repair and shall keep the fences on the Premises in as good repair and condition as they are at the commencement of the Lease, or in as good repair and condition as they may be put by Lessor during the term of the Lease, whichever is better, ordinary wear, loss by fire, or unavoidable destruction excepted;
5. prevent all unnecessary waste, or loss, or damage to the property of Lessor, and to abate dust upon the property as required or encouraged by governmental authority having jurisdiction of the property;
6. keep the Premises neat and orderly;
7. manage grazing operations to mitigate noxious weeds;
8. not perform any work on water courses or ditches or undertake any other operation that is reasonably likely to damage the water upon Premises. Whenever possible animals should be kept out of and away, by a minimum of ten (10) feet, from all natural water sources, rivers, springs, and water bodies. Stock ponds or watering trough(s) should be utilized when possible, for watering animals. If the use of stock ponds or watering troughs are not reasonably possible or available, animals may access water provided by natural water sources, rivers, springs, and water bodies so long as animals are not allowed or encouraged to linger. Animals should be routinely moved as to not place unreasonable strain on water courses, ditches, and the riparian areas that are supported by such;
9. not disturb or plow land without the consent of the Property Manager;
10. not house automobiles, motor trucks, or tractors on the Premises or to have inoperable vehicles on the Premises without the written permission of the Property Manager except as allowed under Section 9;
11. dispose of or use any hazardous materials in accordance with Section 25 of this Lease;
12. not over-graze the area in which vegetation is completely removed and bare soil exposed;
13. not confine livestock in a manner defined by the Environmental Protection Agency as an Animal Feeding Operation (AFO) or Confined Animal Feeding Operation (CAFO).

1. Government Conservation Programs. Lessee covenants and agrees to cooperate in the operation of all government conservation and other programs pursuant to all applicable laws, rules, and regulations.

1. Encumbrance of Title. Nothing herein contained shall authorize the Lessee to do any act or make any contract so as to encumber or affect in any manner the title or rights of the Lessor in the said Premises, it being understood that all repairs and alteration permitted to be made by the Lessee upon or in the Premises shall be paid for by the Lessee in cash or its equivalent, and it is especially agreed, notice hereby given to that effect, that no contract, transfer, assignment, mortgage, judgment, mechanic’s or other lien arising out of the transactions of the Lessee shall in any manner affect the title of the Lessor in said Premises or take precedence to any of the rights or interest of the Lessor herein.

1. Acceptance of Premises. Lessee has examined the Premises and shall be deemed to have accepted said Premises in its then condition at the commencement of the term of this Lease. Lessee leases the Premises in “as is” condition, with all faults, including environmental contamination, and not based upon any representations by Lessor as to the condition of the Premises or as to the suitability of the Premises for the purposes to which Lessee desires to put the property.

1. Expenses. Lessee shall pay all operating expenses with respect to the Premises and shall comply with all federal, state and municipal laws, rules, regulations, and ordinances with regard to the use and condition of the Premises.

1. Insurance. Lessee shall procure and maintain for the duration of this Lease, General Liability insurance written on an occurrence basis with limits no less than a combined single limit of One Million and no/100 Dollars ($1,000,000.00) per occurrence and Two Million and no/100 Dollars ($2,000,000.00) in aggregate for personal injury, bodily injury and property damage which may arise from or in connection with the usage hereunder by the Lessee, its agents, representatives, employees, volunteers or subcontractors.
2. Summit County, as the Lessor, shall be named as an additional insured on the insurance policies, with respect to usage by or on behalf of Lessee and a copy of the endorsement naming Summit County as an additional insured shall be attached to the certificate of insurance. The certificate of insurance shall warrant that Summit County shall receive thirty (30) days advance notice of cancellation. Summit County reserves the right to request certified copies of any required policies.
3. The Lessee’s insurance shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.
4. Lessee assumes the risk for its use and for its operations upon the Premises and shall be solely responsible for providing casualty insurance for Lessee’s personal property on the Premises which shall not be covered by any insurance carried by Lessor.
5. Lessee hereby waives any and all right to compensation for any work performed by Lessee, including any rights arising under any laws and the doctrine of emblements. Lessor shall have the right to remove, store, sell, and dispose of personal property and retain any proceeds derived there from pursuant to any and all applicable laws. .
6. If the Event of Default relates to any other obligation not deemed to be an emergency by Lessor, Lessor shall give Lessee a fourteen (14) day written notice of default.
7. If the Event of Default is deemed by Lessor to be an emergency requiring immediate attention, Lessor shall give Lessee telephonic notice of default followed by written notice requiring immediate cure of the default.
8. Upon expiration of the notice period provided above, if Lessee has not cured the Event of Default, Lessor may take any of the following actions, or any other actions allowed in law or equity:
   1. Cure the Event of Default at the expense of Lessee, in which case any costs incurred by Lessor in curing the Event of Default shall be due and payable to Lessor within thirty (30) days after receipt of an invoice therefore;
   2. Terminate this Lease by written notice of termination to Lessee. Absent such written notice of termination, no action by Lessor shall be deemed to be a termination of this Lease;
   3. If Lessee fails to vacate the premises after receiving a written notice of termination, and Lessor obtains a judgment pursuant to the Utah Code against Lessee for restitution of the premises, Lessee shall be liable to the Lessor for attorney’s fees, court costs, damages for any waste of the premises, costs and expenses for reletting, and any difference in rent through the remainder of the term of the Lease;
   4. Bring an action for collection of damages caused by Lessee’s breach of the Lease; or
   5. Any combination of the foregoing remedies and those provided in law or equity.

1. Attorney’s Fees. If the Lessor shall commence any legal proceedings against Lessee for an Event of Default as provided above or for any other relief because of any default by Lessee and shall prevail therein, Lessee shall, in each and every such instance, pay to Lessor all expenses thereof, including reasonable attorney’s fees and costs, including attorney’s fees and costs on appeal or in any bankruptcy or similar action. If Lessee shall commence any legal proceedings against Lessor for relief because of any default by Lessor and shall prevail therein, Lessor shall in each and every instance pay to Lessee all expenses thereof, including reasonable attorney’s fees and costs, including attorney’s fees and costs on appeal or in any bankruptcy or similar action. The term “prevail” as used above shall mean to obtain substantially the relief sought.

1. Structures and Improvements. Lessee shall not erect or place upon the Premises any structures, buildings or improvements, permanent or temporary, or alter the existing structures, if any, without the prior written consent of Lessor. Upon termination of this Lease, all structures, buildings, improvements, and alterations, erected, placed or made upon the Premises shall, at the option of Lessor, remain and become the sole property of Lessor. Should Lessor elect not to exercise this option, Lessee shall remove all said structures, buildings, improvements and/or alterations from the Premises prior to the expiration of the term of the Lease or within thirty (30) days after termination of the Lease if terminated prior to expiration of its term.

17. Hazardous Materials/Poisons.

1. Lessee Covenant. Lessee covenants that Lessee and anyone acting by, though, or under Lessee, will not, through its acts or omissions, cause or permit any hazardous materials or any poisons, herbicides, pesticides, fertilizers, or other foreign chemicals or substances (“Poisons”) to be placed, held, located, released or disposed of on, under, or at the Premises as permitted herein. The term “Hazardous Materials” shall mean any substance or material which is defined as or included in the definition of “hazardous substances”, “hazardous wastes”, “hazardous materials”, “extremely hazardous waste”, “acutely hazardous wastes,” “restricted hazardous waste,” “toxic substances”, or “known to cause cancer or reproductive toxicity” (or words of similar import), petroleum products (including crude oil or any faction thereof) or any other chemical, substance, or material which is prohibited, limited, or regulated under any federal, state or local law, ordinance, regulation, order, permit, license, decree, common law, or treaty now or hereafter in force regulating, relating to, or imposing liability or standards concerning materials or substances known or suspected to be toxic or hazardous to health and safety, the environment, or natural resources (“Environmental Law”). “Release” means any actual or threatened spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, presence, dumping, migrating on or from the Premises or adjacent property, or disposing of Hazardous Materials into the environment.
2. Use of Permitted Materials. Lessee may store upon the Premises and use only those herbicides, pesticides, fertilizers or other foreign chemicals or substances that are approved by the United States Department of Agriculture and by the Department of Agriculture of the state of Utah in the minimal quantities required by Lessee’s operations (“Permitted Materials”). Any and all such materials and substances shall be applied in strict compliance with instructions contained on the label or furnished by the manufacturer thereof. Lessee shall keep appropriate records regarding the application of the Permitted Materials and provide copies of such records to Lessor upon Lessor’s request. No experimental poisons or herbicides or sewage sludge or other byproduct of sewage shall be applied to the Premises. No soil-applied sterilant or semi- sterilant shall be applied to any portion of the Premises without the prior written consent of Lessor. Lessee shall not apply any organic material on the Premises without the prior written consent of Lessor, which consent must be obtained prior to each application of organic material and which consent may be withheld in the sole discretion of Lessor. In the event the Lessor gives such consent, Lessee shall keep appropriate records regarding the application of any such organic material and make those available to Lessor at its request. Lessor may require additional soil testing before any organic material application(s), in Lessor’s sole discretion.
3. Use of Gasoline and/or Diesel Fuel. Lessee shall not store gasoline and/or diesel fuel upon the Premises without prior written consent of Lessor, which consent may be withheld in Lessor’s sole discretion. In the event of Lessor consent, the gasoline and/or diesel fuel shall only be stored in above-ground leak-proof containers within a proper containment structure in accordance with all relevant laws and regulations. The transfer of any gasoline or diesel fuel to vehicles or machinery must be done in accordance with all relevant laws and regulations, and Lessee shall take prudent measures to prevent gasoline or diesel fuel from contacting any soil.
4. Release of Hazardous Material/Poisons. In the event a Release of Hazardous Materials or Poisons (excluding the permitted quantity of Permitted Materials) or violation of any Environmental Laws, Lessee shall immediately notify Lessor of any such discovery. If the Hazardous Materials/Poisons have been released by Lessee or Lessee’s agents (whether such release is discovered by Lessee or Lessor during the term of this Lease or following the termination of the Lease), Lessee shall, at its sole cost and expense, comply with all Environmental Law to remedy the situation, including, without limitation, promptly conducting a site assessment, taking immediate action required for containment of the release, and preparing and implementing a plan for the cleanup of the release. Lessee shall properly dispose of any Hazardous Materials and Permitted Materials permitted to be used and stored on the Premises by licensed haulers to licensed facilities in accordance with Environmental Law. Lessee shall sign all documentation and waste manifests required to facilitate such transportation and disposal, and Lessee shall at all times be deemed the transporter/generator of any such Hazardous Materials, contaminated soil, ground water or rinse water. Lessee shall provide copies of waste manifests, bills of lading or other related documentation upon request by Lessor. Lessee shall promptly provide Lessor with notice of any discovery of any Hazardous Materials located on the Premises, or any notices or correspondence related to the presence of Hazardous Materials, or any claim made or threatened, concerning Hazardous Materials associated with the Premises or Lessee’s operations thereon. Lessee’s representations, warranties, indemnifications, and obligations under this Section 25 shall survive the expiration or termination of this Lease.

18. Reservation Rights.

a) General Reservation. Lessor reserves the right to use any and all roads, trails, highways, trailheads, ditches, canals, railways, pipelines, utility facilities, irrigation facilities, water retention basins, and storm/sewer facilities that may be located on the Premises. Lessor also reserves and retains all minerals, coal, carbons, hydrocarbons, oil, gas, chemical elements and compounds, whether in solid, liquid, or gaseous form, and all steam and other forms of thermal energy on, in, or under the Premises land (collectively “Mineral Rights”), and the parties acknowledge and agree that the Mineral Rights are not included as part of the Premises. Lessee acknowledges and agrees that this Lease is subject to the reservation of the Mineral Rights, and the Lessor and/or other owners or lessees of the Mineral Rights have the right to enter upon the Premises to prospect for, drill for, produce, mine, extract, remove, inject and store such oil, gas and other minerals in, on, from and through the Premises.

b) Environmental Reservation. Lessor reserves the right to use any and all Premises property as necessary, in Lessor’s sole discretion. Lessor also reserves the right to require Lessee to corral livestock as necessary, in Lessor’s sole discretion, to allow onsite work on the premises. Reserved rights may interfere with the occupancy of Lessee.

19. No Recourse. Notwithstanding anything herein to the contrary, Lessee agrees that any claim

against Lessor shall be limited to the real property and improvements located within or on the Premises. Lessee hereby waives its rights to make any