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Home My WebLink About17 036 KNJ Land Lease Agreement (2017) By-law THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE KBT • vo. ii ' Y 0' ��LItt OF K1HGP��a BY-LAW NO. 2017 - 036 BEING A BY-LAW TO AUTHORIZE THE SIGNING OF A LEASE AGREEMENT WITH KNJ FARMS FOR RENTAL OF PART OF CON A PT LOTS 26; TO 29 RP 3R438 PARTS 3 TO 8; PT PART 2 RP 3R3803 PARTS 2; TO 5 PT PART 1 RP 3R3613; PART 1 and CON A PT LOTS 29 & 30 RP; 3R5856 PARTS 1 & 2 WHEREAS Section 81 andof ( ) 9theMunicipal Act, 2001, S.O. 2001, c. 25, as amended, provide that the powers of a municipality under this or any other Act shall be interpreted broadly so as to confer broad authority on the municipality to enable the municipality to govern its affairs as it considers appropriate and to enhance the municipality's ability to respond to municipal issues and has the capacity, rights, powers and privileges of a natural person for the purpose of exercising its authority under this or any other Act; AND WHEREAS the Council of The Corporation of the Municipality of Kincardine deems it advisable to enter into a lease agreement with KNJ Farms in consideration of the rents, covenants and obligations stipulated therein; NOW THEREFORE the Council of The Corporation of the Municipality of Kincardine ENACTS as follows: 1. That The Corporation of the Municipality of Kincardine enter into a lease agreement with KNJ Farms, for the rental of land more particularly described as part of CON A PT LOTS 26; TO 29 RP 3R438 PARTS 3 TO 8; PT PART 2 RP 3R3803 PARTS 2; TO 5 PT PART 1 RP 3R3613; PART 1 and CON A PT LOTS 29 & 30 RP; 3R5856 PARTS 1 & 2, Municipality of • Kincardine in consideration of rents, covenants and obligations. 2. That the Mayor and Chief Administrative Officer be authorized and directed to execute, on behalf of The Corporation of the Municipality of Kincardine, the Lease Agreement with KNJ Farms, attached hereto as Schedule "A" and forming part of this By-law. 3. That this by-law shall come into full force and effect upon its final passage. 4. That this by-law may be cited as the "KNJ Land Lease Agreement (2017) By-law". READ a FIRST and SECOND TIME this 15th day of March, 2017. READ a THIRD TIME and FINALLY PASSED this 15th day of March, 2017. (1/11 --1 ‘161LIQ 5,-)6). 'trot. Mayor Clerk • This is Schedule " A "to By-Law Noanpassed the j day of (YlO(Ch 201+ This AGREEMENT made this ) 5 day of NI orCh 2017 BETWEEN: THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE (hereinafter called the "Lessor"of the First Part) And KNJ FARMS (hereinafter called the "Lessee" of the Second Part) THIS AGREEMENT WITNESSETH THAT in consideration of the rents, covenants and agreements hereinafter reserved and contained on the part of the said Lessee, to be paid, observed and performed, the said Lessor has demised and leased and by these presents doth demise and lease unto the said Lessee the premises; AND FURTHER that the Lessor and Lessee agree as follows: 1. The lands to be rented are more particularly described as part of CON A PT LOTS 26; TO 29 RP 3R438 PARTS 3 TO 8; PT PART 2 RP 3R3803 PARTS 2; TO 5 PT PART 1 RP 3R3613; PART 1 and CON A PT LOTS 29 & 30 RP; 3R5856 PARTS 1 &2 as shown in the cross-hatched sections on Schedule "A" attached. 2. The Lessor shall rent 80 acres, more or less, of unused vacant land to the Lessee to be used as agricultural crop land. 3. The Lessee will have and hold the said lands for the term of May 1'2017 to December 31, 2022. Renewal of this agreement shall be at the discretion of the Lessors. 4. The Lessee shall pay rent annually of$7,500 plus HST due and payable in two equal installments of$3,750 (three thousand seven hundred and fifty dollars)plus HST bi-annually, which shall be due on the first day of April and the first day of November, in each year of the agreement, with payment to be made by cheque or cash. 5. The Lessee shall not be responsible for any property taxes that may be assessed against the lands as a result of the Lessee occupying the lands. 6. At no time will there be vehicles or machine traffic on runways or crossing active runways. The Lessee shall call the airport manager well ahead of time (5 days needed)to do tilling or removal of crops due to potential aircraft traffic. Bales of hay or straw will be removed immediately on lands along runway. 7. The Lessee covenants to cultivate and maintain the land using environmentally sound land stewardship practices as determined by the Ontario Ministry of Agriculture, Food and Rural Affairs. 8. The Lessee shall be responsible for maintaining the property including fences in a reasonable condition. 9. The Lessee will during the continuance of said term, mow the grass, keep down all noxious weeds and grasses, which shall grow upon said premises and will not suffer or permit any such foul seeds or noxious weeds to go to seed on the said premises. The lessor shall maintain the grassed ditch areas. 10. The crops may be alfalfa, hay, grains long the sides of the runways (not to gather birds). This shall not supersede the provisions contained in the Weed Control Act, as amended from time to time. 11. The Lessee shall keep the mouths of all under drains on the said premises open and free from obstruction, an in good running order at all times during the said terms, and will not suffer or permit such drains, or the water-courses in any open ditches on said premises to become obstructed, but will constantly keep the same free and clear, for the water flowing therein. 12. If rent is not paid when due, the Lessee agrees to pay interest on the amount of unpaid rent at the rate then charged by the Lessor for overdue property taxes. 13. The Lessee agrees to fully indemnify and hold harmless the Lessor from and against all suits,judgments, claims, demands, expenses, actions, causes of action and losses of any kind and for any and all liability for damages to property and injury to persons (including death) which the Lessor may incur, sustain or suffer as a result of, arising out of or in any way related to the matters addressed in this Agreement, unless such losses are caused solely by the Lessor's own gross negligence or willful misconduct. 14. The Lessee shall put in effect and maintain in his name, at his expense, all the necessary insurance that would be considered appropriate for a prudent Lessee undertaking this type of operation for the period during which the Agreement is in effect with insurers acceptable to the Lessor, including: Farm Liability Insurance, for third party bodily injury, personal injury and property damage to an inclusive limit of not less than Two Million Dollars ($2,000,000.00)per occurrence. The policy shall include: a. The Corporation of the Municipality of Kincardine as an additional insured; b. Pollution Liability c. A thirty (30) day written notice of cancellation The Lessee shall provide the Lessor with a valid Certificate of Insurance as evidence of the above coverages by May 1, 2017. The Lessee shall provide the Lessor with any renewal replacement certificates as may be necessary during the term of the Agreement. 15. This lease is not assignable by the Lessee without the express written consent of the Lessor. 16. This agreement may be terminated prior to December 31, 2022 by either party providing written notice is received prior to January 1St of the year to be terminated. 17. Provided this lease is and has remained in good standing,the Lessee shall have the first option to renew the lease by providing a written request to the Lessor on or before July 31, 2022. The terms and provisions of the renewal lease shall be satisfactory to the Lessor in its sole discretion. If a renewal lease has not been negotiated and executed by both parties on or before September 1, 2022, the Lessor shall be at liberty to tender the lease for the Lands or enter into negotiations with any other party for the lease of the Lands. 18. Unless the context otherwise requires,the word "Lessor" and"Lessee"wherever used herein shall be construed to include and shall mean the executors, administrators, successors and/or assigns of the said Lessor and Lessee, respectively, and where there are two or more Lessee bound by the same covenants herein contained, their obligations shall be joint and several. 19. Any notice which either of the parties is required or permitted to give pursuant to any provision of this lease shall be given in writing by hand delivery or by registered mail addressed as set out below. Such notice shall be deemed to have been given at the time it was delivered or mailed, as the case may be. To the Lessee at: KNJ Farms 5930 Highway 9 Kincardine, ON N2Z 2X5 To the Lessor at: Office of the Clerk, Municipality of Kincardine, 1475 Concession 5, RR#5, Kincardine Ontario, N2Z 2X6 k-e_A-4"-' //AY Kevin Stewart I c't (C'' Wit ess , We have the authority to bind the Corporation. The Corporation of the Municipality of Kincardine c (..y(i,,k__e_, M o+r—Anne 1 CAO—Murray Clarke We have the authority to bind the Corporation. i ire I I I „V. ainPauaS