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Fergus Falls Port Authority approves one-year farmland lease renewal
Summary
The Fergus Falls Port Authority voted to renew its year-to-year farmland lease with the current tenant, keeping the existing terms and rental rate in place while negotiations with potential developers continue.
The Fergus Falls Port Authority on a date not specified approved a one-year renewal of its farmland lease with the current tenant, keeping the lease terms and rental rate unchanged, city staff said.
City staff member Clara told members the authority keeps some Port Authority land in agricultural production “when redevelopment projects are not in play,” and that the current farmer may continue to use the fields while the city pursues potential sales or development discussions with Otter Tail Power and Balanced Rock Power.
The renewal approved at the meeting preserves the existing one-year, year-to-year arrangement. Clara said the written lease agreements in members’ packets “remain essentially the same year to year.” The lease also includes a provision to compensate the tenant if the Port Authority needs to terminate farming activity midseason for development, staff said.
Members discussed whether to seek market data next year. Port Authority member Layton recommended conducting “somewhat of a survey to find out what comparable rates would be there for rent,” saying members had heard a range of figures in informal conversations. At the meeting, members cited an LOI rate of $300 per acre for an Otter Tail Power proposal and said they had previously heard about $700 per acre for a battery project; others mentioned hearing “low end rents” at $3.50 and the Port Authority’s current rent at $1.70, all figures presented at the meeting and not independently verified.
Board members said they were not seeking to displace the existing farmer for the 2025 season and that an RFP to solicit other farmers could be used in the future if the authority chose that route. One member noted the race track leases some nearby Port Authority land under a longer-term arrangement that does not expire until Dec. 30, 2026.
A motion to approve the one-year renewal was offered and seconded and carried on a voice vote; no recorded no votes were announced at the meeting. Members directed staff to consider market-rate information and possible procurement options, including an RFP, ahead of next year’s lease decision.
The authority also discussed earlier proposals for a battery project and a solar/battery timeline with regional grid operator requirements; those negotiations remain unresolved, and staff said no agreements were signed at this time.
