City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Mike Willett, Public Works Director
MEETING DATE: April 15, 2025
ITEM NO: 6.12
SUBJECT: Adopt Resolution No. 2025-25 Authorizing the City Manager to Execute a Three-Year Agricultural Lease Agreement, and Two-One-Year Extensions, with David Fantozzi Farms for the Olive and Sycamore Avenue Property.
RECOMMENDATION
Motion to adopt Resolution No. 2025-25 authorizing the City Manager to execute a three-year agricultural lease agreement, and two-one-year extensions, with David Fantozzi Farms for the Olive and Sycamore Avenue Property.
BACKGROUND
The land, known as Assessor’s Parcel Number 047-026-026, more particularly described in Exhibit A to the Agreement, attached hereto, was purchased by the City for the future Villages Sports Complex Project.
ANALYSIS
In November 2024, City staff solicited proposals from regional agricultural companies and received no proposals. Staff later solicited interest from prior lessees and received a response for the Olive and Sycamore property from David Fantozzi Farms for the purposes of farming row and field crops. The proposal consisted of the following terms:
· The initial term of this Lease shall be for a period of three (3) years commencing on the Effective Date.
· Lessee shall be entitled to extend the Lease Term for a period of one (1) year, with a maximum of two (2) extensions.
· Annual rent for the Premises shall be $50.00 per acre based on the number of workable acres. The Premises is approximately 18.26 acres, and the workable acres are 17 acres.
Accordingly, the annual rent payable to City shall be $850.00. · Lessee assumes responsibility and agrees to be solely responsible for any and all water supplied to the Premises during the Lease Term. Lessee shall further be responsible for payment of all water taxes and assessments on the Premises owed or imposed during the Lease Term. Lessee shall not have the right to sell, assign, or convey any irrigation or water rights of the Premises.
· If any governmental authority levies, assesses or imposes on Lessor any tax on the Premises, Lessee shall, at Lessor’s election in its sole discretion, pay such tax directly to the governmental authority or pay the amount of such tax to Lessor. · Lessee shall, at Lessee’s sole expense, comply with all laws and requirements of any governmental authority having jurisdiction over Premises. Lessee shall immediately furnish Lessor with a copy of any notices received from any governmental agency, insurance company, or inspection bureau in connection with the Premises. · Lessee is responsible for all maintenance during the duration of the lease. · Lessee acknowledges that the Premises is contemplated to be developed into a citywide and regional sports complex and drainage basin to be owned and operated by Lessor, pursuant to the Villages of Patterson Master Plan (“Villages Sports Complex”). The Parties intend that Lessor be allowed to terminate this Lease at such time that it is ready to develop the Villages Sports Complex.
· Lessor shall have the unconditional right in its sole discretion to terminate this Lease at any time based on its readiness to develop the Villages Sports Complex, upon sixty (60) days’ written notice to Lessee. Upon such termination, Lessor shall vacate and surrender the Premises and shall have no further right to use or occupy the Premises. · In the event of such termination by Lessor, Lessee may request additional time beyond the termination date as may be necessary to harvest remaining crops on the Premises.
Provided that the additional time requested is no longer than four (4) months after the date of termination, Lessor shall be entitled to the extension requested. City in its sole discretion, however, may deny any extension request beyond the four (4) month period.
Lessor shall have no obligation to compensate Lessee for the value of the planted crops that must be abandoned before termination of the Lease.
FISCAL IMPACT
By leasing the properties, the City will generate annual revenue in the amount of $850 and revenues are deposited into CFD 2018, Account 180-000-5315.