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Committee to review county leases after unpaid farm fertilizer invoice; lease terms, rents discussed
Summary
Members discussed an unpaid fertilizer invoice for the county farm, how lease terms require the county to pay and be reimbursed, upcoming expirations and a plan to compile tenant rent data for a later decision on rate adjustments.
Scott, committee member, reported the county farm lessee had been invoiced for 100% of fertilizer costs in mid-May but the county had not received payment.
“The lease says that, the lessee will pay a 100% of fertilizer bills, probably full receipt of invoices. And he's been invoiced, like, May 15 or sixteenth, and we haven't been paid yet,” Scott said. He told the committee he would wait until after the board meeting and call the lessee; if there is no answer he would send a letter.
Members clarified aspects of the lease and current practice: the county typically pays fertilizer vendors and the lessee reimburses the county, and the farm leases have three-year terms that currently expire Aug. 31. Committee members said the arrangement was historically intended to let the county “keep a thumb” on farm operations and to ensure contract terms are followed; some members said past problems prompted stricter lease language.
The discussion expanded to other building leases and rents. Committee members said current rental rates include $11 per square foot for some tenants; Jill (committee member) reported Farm Services is at $17.55 per square foot and the AIC pretrial office pays $15.17. Committee members agreed to compile a spreadsheet of tenants, square footage and current rents so they could consider whether to adjust rates.
No rent increases were adopted. The committee directed staff to email the member group a table of tenants, square footage, current rents and expiration dates and to review an inflation index (CPI) or similar measure when they return with the data.
The committee also noted that the existing farm lease runs for two more years under the current terms and that any change to the payment or bidding process would require future action to amend lease terms.
