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CITY SECRETARY
CONTRACT NO.
GRAZING LEASE AGREEMENT
THE STATE OF TEXAS §
COUNTY OF TARRANT §
KNOW ALL MEN BY THESE PRESENTS
This Grazing Lease Agreement("Agreement")is made and entered into this day
of MC04N , 2019 by and between the City of Fort Worth, a home-rule municipal corporation of
the State of Texas ("LESSOR"), acting by and through its duly authorized Assistant City Manager
and EG Cattle Co.,LLC,a Texas limited liability company("LESSEE").
WITNESSETH:
I. LEASED PREMISES. For and in consideration of the rental payments to be paid
hereunder and the other covenants and promises expressed herein, LESSOR does
hereby agree to lease and demise to LESSEE solely the surface of real property
situated in the City of Fort Worth, Texas, more particularly described as a 285.80
acre tract of unimproved land out of the Catherine A. Kuykendall Survey, Abstract
No. A 901 and the Jacob Wilcox Survey #46, Abstract No. A 1720 (the "Leased
Premises"). The exact boundaries of the Leased Premises are illustrated in Exhibit
A, which is attached hereto and incorporated herein for all purposes as though it
were set out at length.
H. TERM. The term of this Agreement shall begin on October 1, 2018, and shall
conclude on September 30, 2019 (the "Term"), unless terminated sooner in
accordance with Article XXVII. The Term will be an initial one year term, and this
Agreement shall automatically renew for renewal terms of one-year each, unless
either party provides the other written notice of intent not to renew with no less than
thirty(30) days' notice prior to the end of the then-current term.
III. USE OF LEASED PREMISES.This Agreement is solely for the purpose of permitting
the LESSEE to graze domesticated livestock owned by the LESSEE. LESSEE will
keep all livestock in good condition and not allow grazing of livestock owned by other
individuals. LESSEE agrees that the Leased Premises will be used solely for grazing
purposes and will not be used for any purpose in violation of the law, local statue,
ordinance,or regulation.
IV. ACCEPTANCE OF LEASED PREMISES.LESSEE takes the Leased Premises
and all appurtenances in"AS IS"condition without any express or implied warranty
on the part of the LESSOR. LESSEE accepts the Leased Premises in their present
condition,finds them suitable for the purposes intended,and further acknowledges
that it is thoroughly familiar with such condition by reason of a personal inspection
and does not rely on any representation by LESSOR as to the condition of the
Leased Premises or their suitability for the purposes intended.LESSEE accepts the
Leased Premises subject to any and all previously recorded easements that may
have been granted on along,over,under,or across said property,and releases
OFFICIAL RECORD
Grazing Lease CITY SECRETARY
Page 1 of 7 FT WORTH,TX
LESSOR from any and all damages, claims for damages,loss,or liabilities that may
be caused to invitees, licensees, or trespassers by reason of the exercise of such
rights or privileges granted in said easements. LESSEE's taking possession of the
Leased Premises shall be conclusive evidence(a)that the Leased Premises are
suitable for the purposes and uses for which same are leased; and(b)that LESSEE
waives any and all defects in and to the Leased Premises and all the appurtenances
thereto. LESSOR shall not be liable to LESSEE,its agents,employees,contractors,
subcontractors,invitees, licensees,or guests for any damage to any person or
property due to the acts or omissions on the Leased Premise of LESSEE,its agents,
employees,contractors,or subcontractors.
V. NO SERVICES. LESSOR shall not furnish LESSEE with any utilities, cleaning,
lighting, security, fence, gate, or any other items ors ices for the Leased
Premises.Any services or utilities needed by LESSEE will be provided by LESSEE
at its sole cost.
VI. RENT. LESSEE shall pay LESSOR rental in the amount of Two Thousand Fifty-
Two and 00/100 Dollars($2,052.00)per term for the Leased Premises.Payment shall
be due and payable on October I st of each year this Agreement is in effect.
VII. ADDITIONAL CONSIDERATION. In addition to any rents owed, LESSEE
grants to LESSOR a non-exclusive license to use the access road, as designated
on Exhibit"A"across LESSEE's property,which abuts the Leased Premises.Use
of this access road shall be solely for the purpose of providing LESSOR with
access to its property from Ten Mile Bridge Road, but under no circumstances
shall LESSOR use this road for activities related mineral extraction. In using this
access road, LESSOR shall make efforts to ensure the security of LESSEE's
property; if LESSOR must open any gates in order to use the access road,
LESSOR shall return such gates to their closed position immediately following
use.
VIII. INSURANCE. So long as this Agreement is in effect, LESSEE shall maintain
commercial general liability insurance coverage on the Leased Premises in the
minimum amount of five hundred thousand dollars($500,000). Such coverage shall
not exclude coverage for liability incurred as the result of the activity of the grazing
stock or associated with the maintenance of the grazing stock on the Leased Premises.
LESSEE shall provide LESSOR with a copy of the policy of insurance on demand.
Further,LESSEE agrees to indemnify and hold harmless LESSOR against any
and all claims and causes of action for personal injury and/or property damage
that may arise from, out of, and/or due to activity on the Leased Premises or
related thereto.
IX. LIMITATION ON USE. LESSEE may not excavate, dig, build, or store toxic
chemicals, hazardous materials, or large machinery on the Lowed Premises without
the express prior written permission of LESSOR. LESSEE may plow the 62.3 acre
portion of the Leased Premises designated on Exhibit "A"but may not otherwise
plow on the Leased Premises without express prior written permission of
LESSOR. Any and all improvements added during the team of this Agreement
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mineral lease a requirement that all drill and pad sites be fenced in accordance with
the following specifications as requested by the LESSEE: 6-strand barbed wire with
metalcorner bracing H's and kickers plus a cattle guard with gate across the access
entrance to the pad site.
In addition, LESSOR does not relinquish the right to control the management of
the Leased Premises as a park, or the right to enforce all necessary and proper
rules for the management and operation of the same. Members of the LESSOR's
police,fire,parks,code enforcement,and other designated departments shall have
the right at any time to enter any portion of the Leased Premises(without causing
or constituting a termination of the Agreement or an interference of the use of the
Leased Premises by LESSEE) for the purpose of inspecting and maintaining the
same and performing any and all activities necessary for the proper conduct and
operation of public property.
XVIII. FAILURE TO PAY RENT. If LESSEE fails to pay the rental in the manner
provided above or fails to comply with the obligations, conditions, and covenants of
this Agreement, LESSOR may declare this Agreement immediately terminated. In
such event, the LESSOR, its agent, or attorney, may enter and hold the Leased
Premises until such time as the rental provided above has been paid in full. As
security for payment of the aforementioned rental,LESSOR shall have and is hereby
given an express contract of lien on all cattle and other personal property of LESSEE
on the Leased Premises,this being in addition to the Statutory Land lord's Lien.
XIX. DEVELOPMENT OF PARKLAND.It is agreed and understood that the Leased
Premises is being held by LESSOR in reserve until such time as it can be utilized as
open space land and/or for public recreation. In the interim, the preservation of the
unimproved condition of the Leased Premises will be ensured by LESSEE's limited
use and occupation.Therefore,it is agreed and understood that LESSOR has the right
to terminate this Agreement in accordance with Paragraph XXVI should LESSOR
desire to utilize or develop the Leased Premises as open space land and/or for public
recreation.
XX. SALE OF PROPERTY.LESSOR reserves the right to sell the Leased Premises. In
the event a sale should occur, LESSOR shall provide LESSEE notice of termination
in accordance with Paragraph XXVI and refund to LESSEE all unearned rental on a
pro rata basis.
XXI. MINERALS. There is exempted from this Agreement all oil, gas, and minerals
in and under the lands above described and the right to mine and remove the same.
This Agreement is made subject and subordinate to the terms and provisions of
any valid oil, gas, and/or mineral lease or leases executed by LESSOR either
before or after commencement of this Agreement.
XXII. LIABILITY. LESSOR shall not be liable to LESSEE nor to the employees, agents,
patrons, or visitors of LESSEE for damages on account of injuries to persons or
property, including injuries resulting in death, due to any of the improvements now
or hereafter located on the Leased Premises being improperly constructed or being or
Grazing Lease
Page 4 of 7
shall become part of theproperty and thus,property of the LESSOR.
X. MAINTENANCE OF ROADWAYS. LESSEE will keep the access road and any
and all existing roadways on Leased Premises in as good of repair and condition
as theymay be put during the term of the Agreement; ordinary wear, loss by fire,
depreciation, or unavoidable destruction excepted. LESSEE will consult with
LESSOR prior to a commitment for major repair to roadways on the Leased Premises.
XL MAINTENANCE OF DRAINAGE DITCHES. LESSEE will keep any and all
existing drainage ditches on Leased Premises open and unobstructed during the
term ofthe Agreement.
XII. MAINTENANCE OF TURF. LESSEE will control grazing on the Leased
Premises in a prudent and husbandmanlike manner to prevent overgrazing and
subsequentdeterioration of the native or improved turf. LESSEE will, at its sole
expense,reseed as necessary with plants and grasses of comparable kind and quality
to those found on the Leased Premises at the time this Agreement is executed.
Those portions of the Leased Premises planted to winter wheat at the time of
execution may continue to be reseeded with winter wheat or comparable grain. All
other portions of the Leased Premises shall be reseeded with grasses native to North
Central Texas.
XIIL PREVENTION OF DUMPING. LESSEE shall make all efforts to prevent
dumping on the Leased Premises, including posting appropriate signage on
perimeter fences and immediately removing all trash or debris found on the
property.All signage shall be submitted to LESSOR for approval prior to posting.
XIV. PREVENTION OF TRESPASSING.LESSEE shall make all efforts to prevent
trespass on the Leased Premises, including posting appropriate signage on perimeter
fences. All signage shall be submitted to LESSOR for approval prior to posting.
XV. HUNTING.Hunting on the Leased Premises is strictly prohibited. LESSEE shall not
hunt and shall prevent others from hunting by posting appropriate signage on
perimeter fences. All signage shall be submitted to LESSOR for approval prior to
posting.
XVI. ASSIGNMENT, SUBLEASE, INHERITANCE. LESSEE is prohibited from
assigning its rights under this Agreement or subletting the Leased Premises or any
part thereof without the prior, written consent of the LESSOR. Any attempted
assignment or sublease without LESSOR'S consent shall be void.
XVII. RIGHT OF ENTRY.LESSOR reserves to itself,its agents,asoigns,and employees
the right to enter the Leased Premises at any time for the purpose of consulting with
the LESSEE, making inspection of the property, conducting regular park-related
activities(including tours),making repairs or improvements,installing and repairing
petroleum pipelines,and developing oil,gas,or other mineral resources.In the event
LESSOR seeks to develop the minerals associated with any portion of the Leased
Premises or adjoining property, the LESSOR shall include as a condition in the
Grazing Lease
Page 3 of 7
becoming out of repair; and LESSEE hereby waives all defects therein, as well
as in the lands above described,and agrees to hold harmless and indemnify LESSOR
fromall claims for damages arising therefrom.
XXIII. CONSERVATION. LESSEE agrees to avail itself of the advice and services of
the local Natural Resource Conservation Service, the Agricultural Extension
Service and the Farm Service Agency and will operate the property in an efficient
and workmanlike manner.LESSEE will also use diligence in controlling noxious
plants, and LESSOR reserves the right to implement various management
practices to aid in control.
XXIV. SURFACE DAMAGES. LESSOR will be due all proceeds resulting from damages
related to easements, mineral exploration, or other causes. The LESSEE shall
receive a percentage of surface damages resulting from easements and/or gas
exploration that cause a loss of grazing.The percentage will be agreed upon between
LESSOR and LESSEE upon each occurrence.
XXV. PROTECTION OF THE ENVIRONMENT. LESSEE shall consult with staff at
the Fort Worth Nature Center prior to using any chemicals on the Leased Premises.
LESSEE agrees to comply with all laws regulating the use of the chemicals and
disposition of the containers. LESSEE agrees to follow the instructions provided by
the chemical company for the product being used on the Leased Premises and will use
only licensed applicators when having a third party apply the chemicals. LESSEE
will hold LESSOR harmless for any liability claims and cleanup costs involving trash,
refuse, chemicals, or hazardous material caused by LESSEE's use of the Leased
Premises.
XXVI. TERMINATION. This Agreement may be terminated by either party, with or
without cause, by providing the other party with written notice thirty(30) days prior
to the intended termination date.
XXVII. RESEEDING FOLLOWING USE.At the conclusion of this Agreement, either by
expiration or termination, LESSEE shall return the 62.3 acre portion of the Leased
Premises identified on Exhibit"A"to a condition that is as good as or better than its
exists on the date this Agreement is executed. If LESSEE chooses to reseed any
portion of the Leased Premises at the conclusion of this Agreement, LESSEE will
consult with the Fort Worth Nature Center's natural resource staff to determine the
appropriate native seed mix content and coverage of the reseeding.
[SIGNATURES APPEAR ON FOLLOWING PAGE]
Grazing Lease
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ATTEST: {............. CITY Or F RT WORTH:
%*.
MATy J.Kayser vI= ;,anu7
..........
TEXC ta
City Secretary ,' sistant C;Manager
. AS
APPROVED AS TO FORM
AND TACTAL]TV:
Leann D.Guzman
Assistant City Attorney
M&C: --� - 1 q 31,5 1
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LESSEE:
EG CATTLE CO.,LLC
By:
Nam c:
'Title: ,tgS&-
-
4200 South Hulen Street,Suite 614
Fort Worth,'Texas 76109
Contract Compliance Manager:
By signing I acknowledge that I am the person responsible
for the monitoring and administration of this contract,including
ensuring all performance and reporting requirements.
Bc LvAle�
Robert Denkhaus
Nature Center Manager
Grazing Lease OFFICIAL. RECORD
Page 6 of 7 CITY SECRETARY
FT WORTH,TX
EXHIBIT A
FWNC&R GRAZING LEASE ACREAGE
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Grazing Lease
Page 7 of 7
City of Fort Worth, Texas
Mayor and Council Communication
L7A! "f QN*.A-p�ved:�i 3/5124'(9
DATE: Tuesday, March 5, 2019 REFERENCE NO.: **L-16189
LOG NAME: 80NCGRAZELEASEEGCATTLE
SUBJECT:
Authorize Execution of a Lease Agreement with EG Cattle Co., LLC, for Grazing Approximately 285.8
Acres within the Fort Worth Nature Center and Refuge in an Annual Amount of$2,052.00 and Authorize
Successive One-Year Renewal Options (COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a Lease Agreement with EG Cattle Co., LLC, for grazing approximately 285.8 acres within the
Fort Worth Nature Center and Refuge (FWNCR) for an annual fee of$2,052.00; and
2. Authorize successive one-year lease renewal options.
DISCUSSION:
On June 2, 2009, City Council approved M&C L-14749, City Secretary Contract No. 38779 with Marty
Richter to graze 285.8 acre tract that consists of 62.3 acres of improved grazing land that has been
previously cultivated with feed crops and 223.5 acres of bottomland in the vicinity of the FWNCR. Until his
death late last year, Mr. Richter had worked for EG Cattle Co., LLC, for at least 15 years. EG Cattle Co.,
LLC, contacted city staff and expressed interest in continuing leasing a portion of the FWNCR for grazing
purposes.
The proposed tract is located in a remote corner of the FWNCR and is therefore infrequently visited by
staff. The grazing lease has benefitted the City by having a tenant onsite to keep watch on the property
while generating a small amount of revenue. Staff will coordinate use of the site with EG Cattle Co., LLC
and monitor impacts while livestock are present to ensure compliance with the terms of the Annual
Livestock Grazing Lease (Lease).
Staff recommends a total annual lease fee of$2,052.00, which represents a $15 per acre fee for the
improved grazing land and a $5 per acre fee for the unimproved bottomland. These fees match market
rates for grazing leases. Staff will spend fees collected for operations of the FWNCR.
The proposed Lease would be an initial one year term with indefinite annual renewal options upon mutual
consent and would include a provision allowing either party to terminate the Lease, with or without cause,
on 30 days written notice.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations the Park & Recreation
Department is responsible for the collection and deposit of funds due to the City.
Logname: 80NCGRAZELEASEEGCATTLE Page 1 of 2
TO
Fund Department ccoun Project JProgram ctivity Budget Reference # �moun
ID ID Year (Chartfield 2)
FROM
Fund Department ccoun Project Program ctivity Budget Reference # mount
ID ID Year Chartfield 2
F
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Richard Zavala (5704)
Additional Information Contact: Sandra Youngblood (5755)
ATTACHMENTS
1. 2019-2-1 Grazing Lease Certificate of Interested Parties Redacted.pdf (Public)
2. Exhibit A - Proposed Nature Center Lease Area.pdf (Public)
3. Nature Center Grazing Lease - entire park.pdf (Public)
Logname: 80NCGRAZELEASEEGCATTLE Page 2 of 2