Memorandum

City of Lawrence

Department of Public Works

TO:	David L. Corliss, City Manger
FROM:	Mark Thiel, Assistant Public Works Director
CC:	Chuck Soules
Date:	12/14/09
RE:	Addendum #1, Pine Farm Lease Agreement Farm Ground At Lawrence Municipal Airport

Please include the following item on the City Commission consent agenda for consideration at the December 29, 2009 meeting:

The City of Lawrence has a need to modify its agreement with Pine Family Farms Ptn. to lease ground at the Lawrence Municipal Airport due to future economic development (see attached addendum #1 and original agreement).

The Public Works Department met with Mr. Roger Pine.  Both parties have agreed to the changes (outlined in addendum #1) from the original agreement (executed April 23, 2003) to farm ground owned by the City of Lawrence.

The addendum changes the amount of farm ground leased to Pine Family Farms from 39.16 to 43.59 acres, and removes the reimbursable payment by the City of Lawrence for all lime treated soils. The annual payment of $65.00 per acre leased remains the same. The summary below outlines the differences between the April 23, 2003 lease and addendum #1.

Original lease 4/23/2003

acres = 39.16

revenue = $2,545.40 paid annually November 1^st of each year

payments = the city is required to pay 1/2 the cost of any lime treatment performed

Addendum #1 12/29/09

acres = 43.59*

revenue = $2,833.35 paid annually November 1^st of each year

payments = $0.00 - the lime treatment clause was removed

*a formal survey was performed November 2009 to confirm the actual acreage that will be included in this addendum.  Sometime between the original lease and this addendum there was a change in acreage that was not contractually modified.

Action Request.  Authorize the City Manager to execute and approve Addendum #1 between the City of Lawrence and Pine Family Farms Ptn.