TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 9, 2009
COMMITTEE ON REAL ESTATE
Mr. Richard Lanyon, Executive Director
Title
Authority to terminate lease issued to Hummel Plastering, Inc., as sole lessee, to farm Tracts 2 and 3 located in Fulton County, Illinois and issue one lease to co-lessees Hummel Plastering, Inc., and Mr. John Gorsuch to farm Tract 2 and issue one lease to Hummel Plastering, Inc., as sole lessee, to farm Tract 3.
Body
Dear Sir:
At the Board Meeting of March 19, 2009, the Board of Commissioners (Board) authorized and approved the issuance of leases to certain parties to farm specific parcels of District land located in Fulton County, Illinois. The lease terms, including rent, were negotiated by the District’s private farm manager, Heartland Bank and Trust Company (Heartland). The District previously awarded a contract to Heartland for farm management support services for the District’s farmland in Fulton County, Illinois for a 3-year period. The purpose of the farm management services is to effectively manage and maximize the agricultural income of the District’s farmland in Fulton County.
One of the parties issued a lease was Hummel Plastering, Inc. (Hummel), to farm 1,895.5 acres of District land c/k/a Tracts 2 and 3. The tenant requested that Mr. John Gorsuch be added as a co-lessee for the 1,399.5 acres of land in Tract 2 in order to permit the tenant to acquire additional resources to more effectively and profitably farm its leasehold. There would be no disadvantage to the District, as an additional party will be jointly and severally responsible for compliance with all terms and conditions as co-lessees.
In order to maintain clearly defined lease agreement obligations, it is required to first terminate the existing lease with Hummel and to then issue separate leases for each tract: one for Tract 2 with Hummel and Mr. Gorsuch as co-lessees and one for Tract 3 with Hummel as sole lessee.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the termination of the existing lease issued to Hummel Plastering, Inc., to farm Tracts 2 and 3 and the issuance of one lease to Hummel Plastering, Inc., to farm Tract 3 and the issuance of one lease to Hummel Plastering, Inc., and Mr. John Gorsuch as co-lessees to farm Tract 2.
It is further requested that the Executive Director recommend to the Board of Commissioners that it authorize the Chairman of the Committee on Finance and the Clerk of the District to execute the lease agreements after same are approved by the General Counsel as to form and legality.
Requested, Frederick M. Feldman, General Counsel, FMF:OJ:MPS:SOC:MAG:JK
Recommended by, Richard Lanyon, Executive Director
Respectfully Submitted, Terrence J. O'Brien, Chairman Committee on Real Estate Development
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for July 9, 2009