TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 9, 2009
COMMITTEE ON REAL ESTATE
Mr. Richard Lanyon, Executive Director
Title
Authority to amend lease issued to Hummel Plastering, Inc., to farm District land located in Fulton County, Illinois, to add Mr. John Gorsuch as a co-lessee (Deferred from the June 18, 2009 Board Meeting as Revised)
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., to farm 1,399.5 acres of District land c/k/a Tract 2, consisting of Field Nos. 1, 2, 3, 4, 5, 7, 7A, 8, 9, 11, 12, 13, 14, 16, 17, 17N, 18, 22, 23, 29, 60S, 61, 63NW, 64, 65, 80, 81, 82, 84, 105, 106, 107A, B, C, D, 108, 109, 110, 111, 112, 117, 121 and 122. The tenant has requested that its lease be amended to add Mr. John Gorsuch as a co-lessee. Heartland recommends that the tenent’s request be approved by the District. Apparently, this will permit the tenant to acquire additional resources to more effectively and profitably farm its leasehold. There is no disadvantage to the District as the added party will be jointly and severally responsible for compliance with all terms and conditions of the subject lease.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve an amendment of the lease issued to Hummel Plastering, Inc., to farm 1,399.5 acres of District land located in Fulton County, Illinois c/k/a Tract 2 to add Mr. John Gorsuch as a co-lessee for the subject lease.
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 amendment after same is 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