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HomeMy WebLinkAboutKato Farms; 1985-03-25;. 1. . LEASE AGREEMENT THIS AGREEMENT is made between COSTA REAL MUNICIPAL WATER DISTRICT, a municipal water district organized and existing under the Municipal Water District Act of 1911, as amended, hereinafter for convenience referred to as "District," and KAT0 FARMS, hereinafter for convenience referred to as "Kato." Recitals 1. The District is the owner of approximately fifty-five (55) acres of real property, located adjacent to Squires Dam and Reservoir identified as the Squires I1 site and hereinafter referred to as the "property." 2. The District does not currently have need for the property for a water reservoir or other purposes. 3. The District previously leased the property for farming purposes, and since June 1, 1984, has leased the property to Kato. 4. Kato is desirous of continuing to farm the property and District is desirous to continue leasing the property for farming purposes until the property is needed for District purposes. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1, District shall lease the property to Kat0 for farming purposes under the following conditions: a, Kat0 will pay to District the following rental: $11,550, as follows: $1,000 due as of June 1, 1985; $5,000 due as of November 1, 1985; $5,500 due as of May 1, 1986. b, Kat0 shall have option to renew lease yearly, at a rental increase of five percent (5%) per year, for a period of five (5) years, for that portion of property owned and not required for use by District. Payments shall be due in accordance with paragraph 'la'' above, with the exception that the rental increases shall be reflected in the payments due as Of c. Kato shall not engage in any activities, including but not limited to aerial spraying or surface discharges, that may lead to pesticides, fertilizers or other substances coming into contact with the potable water supply of the District, in particular the existing Squires Reservoir. 1 in each of the respective years. d. District shall have the :ight to inspect any and all reports and records of Kat0 relating to paragraph c. above, including but not limited to reports required by health and agricultural authorities. Upon the determination by District that any activities of Kato may be detrimental to the potable water supply or the future use of the property for potable water facilities, Kat0 will immediately cease and desist such activities or take any actions to correct such problems, to the satisfaction of the District. e. Kato shall be responsible for all costs of installation and removal of equipment, piping, filters, stakes, fencing and other materials I .- I required by Kat0 for farming purposes. f. Kato shall be responsible for replacement of any fencing removed, so as to restore fencing to the condition it was in at the commencement of the original lease, on June 1, 1984. g. Kato shall provide liability insurance, shall name the District as additionally insured, and shall hold the District harmless from any damage or injury to any person or property, and not due to the negligence of the District, arising from the use of the property by Kato. Kato shall comply with all laws concerning the use of the property. h. District shall have the right to conduct soils testing, surveying, routine operations and maintenance of District facilities, and other activities as required by District on the property, to the extent that such activities shall not unreasonably interfere with Kato's farming activities. District shall indemnify and hold harmless Kato from and against any claims by District personnel, District and any persons who enter the property with District personnel or with permission of the District while engaged in such activities. i. Kato shall be responsible for its own access to the site. The paved driveway along the District's pipeline easement, starting with the District gate and ending at the District house, shall not be used by Kato. j. Kat0 shall be responsible for payment of such taxes as may be levied on the property as a result of this lease. 2. It is understood that the District plans to use the property for construction of a water reservoir and related facilities. In the event District desires to use or dispose of the property for any District facility or use, or as surplus, this lease may be terminated upon ninety (90) days written notification by the District, or a period of time not to exceed the close of harvest of any crop existing at the time of notice, whichever is later. Thirty (30) days after the date of the last picking shall be considered the close of a harvest. These periods of time recognize the effort necessary to remove pipes, fencing, filters, stakes and related equipment and materials owned by Kato, from the property. I 3. In the event District needs all or a portion of the property for its purposes, or sells all or any portion of the property, lease payments for the remaining property shall be prorated for the balance of the lease. This prorated amount shall be determined by dividing the then prevailing yearly rental by 660 (55 acres x 12 months) to establish a monthly per acre rental. The rental payment for the balance of the year shall be the monthly per acre rental multiplied by the number of remaining acres multiplied by the number of months remaining in the lease. 4. In the event of any dispute arising out of this contract, the prevailing party shall be entitled to payment of reasonable attorney's fees by the nonprevailing party. .- KAT0 FARMS COSTA REAL MUNICIPAL WATER DISTRICT Date of Execution: 3 0 S 4+-- v Date of Execution: 3- 23'- 'I COSTR REAL MUNICIPAL VL/dTER DISTRICT 5950 El Carnino Real, Carlsbad, California 92008 Telephone: (619) 438-2722 June 19, 1984 Kato Farms 3250 Sunny Creek Road Carlsbad, California 92008 This is to confirm your lease of approximately 55 acres of District property, known as the Squires Dam I1 site, which you have been farming under a sep- arate arrangement with Ocean View Farm. Ocean View with a minor exception regarding payment. In accordance with the action of our Board of Directors, the lease price remains at $1’1,000 for the period June 1, 1984, through May 31, 1985. However, whereas Ocean View Farm was required to make payment in advance for the full amount (because of pre- vious payment delays) this will not be required of you. terms and conditions. Your terms will be the same as Following are the LENGTH OF LEASE: One year for the period June 1, 1984, through May 31 , 1985. NUMBER OF ACRES: Approximately 55. LOCATION : East of El Camino Real at the end of Sunny Creek Road at the site known as Squires Dam 11. TYPE OF USAGE: PAYMENT TERMS: Agri cul tural . $1,000 due initially; 1984; $5,500 due by May 1, 1985. $4,500 due by November 1 , FENCING: DISTRICT ACCESS: Lessee shall be responsible for replacement of any fencing removed, so as to restore fencing to the condition it is in as of the commencement of lease. If fencing is improved after commencement of lease, lessee shall restore it to the improved state upon termination of the lease. The District reserves the right to conduct soils testing, routine operations and maintenance of District facilities on the property at all times. (continued ) I- - Kat0 Farms June 19, 1984 Page 2 WATER CONNECTION: Lessee shall have the responsibility to provide for necessary water connections at lessee's expense. LESSEE ACCESS: Lessee shall arrange far access to the site by other than the District gate and driveway at the end of Sunny Creek Road/District pipeline easement. Please sign and return this copy as provided for below. for your fi 1 es. Keep the other copy Si n cere1 y , COSTA REAL MUNICIPAL WATER DISTRICT William C. Meadows General Manager Accepted by: Date: '& I /\(i I /xq