lease policy the governing board authorized a new lease policy at its september board meeting and...
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LEASE POLICYLEASE POLICY
The Governing Board authorized a new Lease Policy at its September Board meeting and deleted the old Lease Policy
The Governing Board authorized a new Lease Policy at its September Board meeting and deleted the old Lease Policy
NEW LEASES, RESERVATIONS, LEASEBACKS
NEW LEASES, RESERVATIONS, LEASEBACKS
To the extent possible, all leases should be standardized
Rent shall be based on an approved appraisal or competitive bid.
Revenue may be based on $ per acre or % of gross sales received from crop harvesting
Lease should be consistent with crop cycles Term should extend to date of project
certification
To the extent possible, all leases should be standardized
Rent shall be based on an approved appraisal or competitive bid.
Revenue may be based on $ per acre or % of gross sales received from crop harvesting
Lease should be consistent with crop cycles Term should extend to date of project
certification
NEW LEASES CONTINUED...NEW LEASES CONTINUED...
Should be competitively bid when time permits When competition is not possible, Waiver of
Competition approved by Governing Board License Agreement based on written quotes may
be utilized for crop sales or land uses for less than 12 months
Governing Board approved Waivers of Competition not required for License Agreements
Should be competitively bid when time permits When competition is not possible, Waiver of
Competition approved by Governing Board License Agreement based on written quotes may
be utilized for crop sales or land uses for less than 12 months
Governing Board approved Waivers of Competition not required for License Agreements
RENEWAL OF EXISTING LEASESRENEWAL OF EXISTING LEASESIf existing lease meets the following conditions, it may be
renewed and the competitive bid process may be waived if Lessee:
Agrees to appraisal to establish market rent (1st year and every 4th year of the term
Agrees to annual CPI index or agricultural commodity index escalation for other years of the term
Has received satisfactory evaluations from the lease project manager
Agrees to any modifications to the Lease terms and conditions as determined by District staff
Regardless of the previous criteria, the final decision as to whether a lease is renewed or competitively bid is at the sole discretion of the District Governing Board or its delegatee.
If existing lease meets the following conditions, it may be renewed and the competitive bid process may be waived if Lessee:
Agrees to appraisal to establish market rent (1st year and every 4th year of the term
Agrees to annual CPI index or agricultural commodity index escalation for other years of the term
Has received satisfactory evaluations from the lease project manager
Agrees to any modifications to the Lease terms and conditions as determined by District staff
Regardless of the previous criteria, the final decision as to whether a lease is renewed or competitively bid is at the sole discretion of the District Governing Board or its delegatee.
ACCEPT OR REJECTACCEPT OR REJECT
The Lessee shall have 10 business days from receipt of the renewal terms to accept by delivering written notice by certified mail.
District’s failure to receive acceptance within the 10 days shall be deemed a rejection of the terms.
The Lessee shall have 10 business days from receipt of the renewal terms to accept by delivering written notice by certified mail.
District’s failure to receive acceptance within the 10 days shall be deemed a rejection of the terms.
LEASE TERMINATIONLEASE TERMINATION
6 month or end of current crop cycle –whichever is less unless otherwise approved by the Governing Board
6 month or end of current crop cycle –whichever is less unless otherwise approved by the Governing Board
DISTRICT PROTECTIONDISTRICT PROTECTION
Lessees are required to deposit one year’s estimated property and sales tax liability with the District upon execution of the lease. Funds are held in escrow.
• In lieu of depositing funds, Lessee may deliver an irrevocable letter of credit or payment bond.
• Lessee is responsible for ad valorem and non-ad valorem property taxes, special assessments and sales taxes levied against leased property
Lessees are required to deposit one year’s estimated property and sales tax liability with the District upon execution of the lease. Funds are held in escrow.
• In lieu of depositing funds, Lessee may deliver an irrevocable letter of credit or payment bond.
• Lessee is responsible for ad valorem and non-ad valorem property taxes, special assessments and sales taxes levied against leased property
AUTHORIZATION OF LEASESAUTHORIZATION OF LEASES
In the event of any inconsistency between the District’s Procurement Policy and the District’s Land Management Policy concerning the administration of agricultural leases, the Land Management Policy shall control.
In the event of any inconsistency between the District’s Procurement Policy and the District’s Land Management Policy concerning the administration of agricultural leases, the Land Management Policy shall control.
EXCEPTIONSEXCEPTIONS
The Governing Board delegated authority to the Land Resources Committee to approve exceptions to the policy without further review by the District Leadership Team or Management Action Team.
The Governing Board delegated authority to the Land Resources Committee to approve exceptions to the policy without further review by the District Leadership Team or Management Action Team.