Board approves annual land lease to longtime tenant at $200 per acre

The Stewartville Public School District board unanimously approved an annual land-lease agreement renewing cash rent to a longtime tenant, board members said.

Superintendent Ms. Silvers told the board the lease covers roughly 20 acres and is billed at $200 per acre; the tenant, Larry Peterson, has agreed to the renewal. She said the district pays the property taxes on the leased parcel and described the lease as a break-even arrangement for the district rather than a profit center.

"We don't make money on this. School districts are not for profit entities. So basically, what we take in goes for property taxes on it because we do lease it," Ms. Silvers said during the discussion. Board members raised whether the board could seek a rent increase and were told that any change would need to be negotiated with the tenant and discussed in advance of the next year's cycle.

Board members discussed timing for renegotiation; the meeting record shows members suggested beginning talks in late summer or fall in time to set terms for the following year. The board noted that, if it wanted to pursue a higher rent, the district would need to involve district staff (Schroeder was named during the exchange) and begin negotiations several months before the January meeting when the new term takes effect.

Miss Kiefer moved to approve the yearly land-lease agreement; Mr. Welch seconded. The motion passed on a 7-0 voice vote.

The board emphasized that proceeds from leased property are constrained by district and statutory rules governing school-district finances and that any plan to change the rent would be considered well before the next lease cycle.