3355 To enter into a lease agreement with Brian Graydon for industrial land to be used for : agricultural purposes. :THE CORPORATION OF THE TOWN OF TILLSONBURG
BY-LAW NUMBER 3355
A BY-LAW to enter ;into a lease agreement with Brian Graydon for industrial land to be used for
agricultural purposes.
WHEREAS The Town of Tillsonburg is desirous of leasing land to Brian Graydon describe as:
a. Highway 3 Industrial Park - Lands located on the south side of Highway 3, being
Part of Lots 1 and 2, Concession 5 N.T.R., Middleton, Town of Tillsonburg,
consisting of approximately 41 acres (Parts 1, 2, & 3 on draft plan);
b. 2901 Highway 3 - Excess lands located on the south side of Highway 3, being
Part Lot 2, Con 5 N.T.R. Middleton, Town of Tillsonburg, containing a grain
dryer, five steel storage bins, accessory buildings and yard, including
approximately 1 acre of cropland;
c. Clearview Drive Lands - Located on the east side of Clearview Dr, between the
properties known municipally as 10 Clearview Dr and 3 0 Clearview Dr, being
Part of Lots 2 & 3, Concession 5 NTR, Part 2 on plan 41R-3421, Town of
Tillsonburg, consisting of approximately 12.45 acres.
THEREFORE the Council of the Town of Tillsonburg enacts as follows:
1. THAT Schedule "A" attached hereto forms part of this by-law;
2. THAT the Mayor and Clerk be hereby authorized to execute the attached agreement
marked as Schedule "A" on behalf of the Corporation of the Town of Tillsonburg.
READ A FIRST AND SECOND TIME THIS 26th DAY OF January, 2009.
READ A THIRD D FINAL TIME AND PASSED THIS 9th DAY OF February, 2009.
AYOR-Stephen Molnar
CLERK -Michael Graves
` ` € � L,1n .1-e -tsc � re�y���.�eta ----. B �2,. l� Gi-,-:turd.€�.n Enterprises Ltd.
THIS AGREEMENT made in duplicate this AKA da of Lj �- , 200 G/ '
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BETWEEN:
THE CORPORATION OF THE TOWN OF TILLSONBURG
hereinafter called the Lessor, of the First Part
-and-
B & B GRAYDON ENTERPRISES LTD.
hereinafter called the Lessee, of the Second Part
WHEREAS the Lessor is the sole administrator of all those parcels or tracts of land described
as:
(a) Lands located on the south side of Highway 3, being Part of Lots 1 and 2. Concession
5 N.T.R., Middleton, Town of Tillsonburg, consisting of approximately 41 acres
(Parts 1, 2, & 3 on draft plan);
(b) Excess lands located on the south side of Highway 3, known municipally as 2901
Highway 3, being Part Lot 2, Con 5 N.T.R. Middleton, Town of Tillsonburg,
containing a grain dryer, five steel storage bins, accessory buildings and yard,
including approximately 1 acre of cropland;
(c) Lands located on the east side of Clearview Dr, between the properties known
municipally as 10 Clearview Dr and 30 Clearview Dr, being Part of Lots 2 & 31)
Concession 5 NTR, Part 2 on plan 41R-3421, Town of Tillsonburg, consisting of
approximately 12.45 acres.
AND WHEREAS the Lessee is desirous of renting said lands and premises for agricultural
purposes for a term ("the lease period") commencing February 1, 2009 to expiration upon
harvesting of crops in the fall of 2009, and no later than December 31, 2009, subject to the
conditions hereafter set forth in this Agreement.
AND WHEREAS the Lessor is desirous of renting the said lands and premises as aforesaid to
the Lessee for the term aforesaid, subject to the conditions hereinafter set forth.
1. NOW THEREFORE THIS INDENTURE WITNESSETH that the Lessee
covenants with said Lessor that the Lessee shall pay rent as set out below, to the
Lessor by two payments each year during the term of this agreement. The first
payment of which will constitute 50% of annual rental fee and shall be due and
payable on or before the start of cultivation and the remaining 50% of the annual
rental fee not later than December 31 st of each year that this indenture remains in
force.
(a) Lands located on the south side of Highway 3, being Part of Lots 1 and 2,
Concession 5 N.T.R., Middleton, Town of Tillsonburg, consisting of
approximately 41 acres (Parts 1, 2, & 3 on draft plan) at a rental rate of $4,000 for
the lease period.
(b) Excess lands located on the south side of Highway 3, known municipally as 2901
Highway 3, being Part Lot 2, Con 5 N.T.R. Middleton, Town of Tillsonburg,
containing a grain dryer, five steel storage bins, accessory buildings and yard,
including approximately 1 acre of cropland at a rental rate of $6,350.00 for the
lease period.. This lease does not include the existing residence currently located
on the property.
(c) Lands located on the east side of Clearview Dr, between the properties known
municipally as 10 Clearview Dr and 30 Clearview Dr, being Part of Lots 2 & 3,
Concession 5 NTR, Part 2 on plan 41R-3421, Town of Tillsonburg, consisting of
approximately 12.45 acres at a rental rate of $1,650.00 for the lease period.
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Page 2
2. IT IS further agreed that the Lessee shall be responsible for the below costs in
addition to the lease costs:
(a) The cost to maintain utilities for the grain dryer operation, including gas and
hydro h dduring the term of the lease, but not including those associated with the
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residence;
(b) The maintenance of the yard, grain dryer, and steel storage bins and related
equipment.
3. PROVISO for re-entry by the Lessor on non-payment or non-performance of
covenants.
4. IT IS further agreed that the crop to be grown on the said lands shall be agreed upon
prior to planting.
5. IT IS further specifically agreed by and between the Parties hereto that the Lessor shall have the right to sell, or lease for purposes other than agriculture, any part of
parts of the subject lands and given immediate possession thereof, subject to the
condition t:ha.t if the Lessor sells, or leases for purposes other than agriculture, and
possession ossession of any of the subject lands on which an agriculture crop is growing, the Lessee shall be compensated for any and all expenses incidental to
growing rowin such corn or bean crop, and the loss anticipated from such crop grown on
lands sold or leased for the current crop year, and the acreage leased pursuant to
paragraph 1 hereof, shall be adjusted to take into account such share or lease
throughout the balance of the term of the Lease.
6. IT IS further specifically agreed by and between the Parties hereto that the Lessor
retains the right to sell or lease for purposes other than agriculture any lands except those on which the crop is being grown without notice or compensation to the Lessee.
7. IT IS further specifically agreed by and between the Parties hereto that the Lessor
covenants with the Lessee for quiet enjoyment of the lands leased. Notwithstanding
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the foregoing, the Lessor shall be permitted to access the property for their purposes
with the costs of any minor crop damage being born by the Lessee.
S. IT IS further specifically agreed by and between the Parties hereto that the Lessee
will not assign or sublet without leave and not to carry on upon the said premises any
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s, other than that of growing of corn or beans and the use of the grain dryer and
business g g
grain storage bins.
9. specifically g
IT IS further s ecificall agreed by and between the Parties hereto that the Lessee
hall provide to the Lessor roof of liability insurance in an amount not less than
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$2,000, to protect rotect both the Lessor and the Lessee with the Town of Tillsonburg
named as an additional insured, from any claims or demands whatsoever which might
result from the aforementioned use of the lands.
T IS furthers specifically agreed by and between the Parties hereto that the Lessee
10. I p y g
covenants to maintain all of the lands rented under this Agreement in good condition
during the lE�ase period.
her hereby agreed between the Parties hereto that if the term hereby
11. IT IS furl y g
granted, _ y
car an of the goods or chattels of the Lessee shall at any time during the said
term be seized or taken in execution or in attachment by any creditor of the Lessee, or
if the Lessee shall make any assignment for the benefit of creditors, or becoming
bankrupt or insolvent debtors the then current and next ensuing balance of rent shall
el become due and payable and the said term shall, at the option of the
immediately p y
become due and payable and the said term shall, at the option of
Lessor, immediately p y
the Lessor, y immediate) become forfeited and determined and in such case, the
re-enter and take possession of the said lands as though the said lands
Lessor ir�ay r
was holding over after the expiration of the said term.
Page 3
12. IT IS further hereby agreed between the Parties hereto that this lease agreement may
be terminated, in whole or in part, by either party in their sole and absolute discretion
upon thirty (30) days notice, in writing, delivered to the below addresses, In the case
where the Lessor terminates the lease, the provisions of Paragraph 5 above shall be in
effect. In the case where the Lessee terminates the lease, he/she shall be responsible
to pay a pro -rated payment to the date of termination for the lands leased.
If to the Town of Tillsonburg:
Cephas Panschow, Development Commissioner
The Corporation of the Town of Tillsonburg
200 Broadway Suite 204
Tillsonburg, ON N4G 5A7
Fax: 519--84.2-9431
If to the B&B Graydon Enterprises Ltd:
Brian Graydon, President
B&B, Graydon Enterprises Ltd
57 547 Talbot Line
RR 3
Tillsonburg, ON N4G 4G8
F: (519)842-6557
13. IT IS further hereby agreed between the Parties hereto that this lease agreement may
be extended in the sole and absolute discretion of the Lessor only at a cost of $1,000
per month.. The Lessee shall provide notice, in writing, of his/her desire to do so and
the Lessor shall have 14 days to provide notice, in writing, of their determination.
IT IS HEREBY declared and agreed that the expressions "Lessor" and "Lessee" wherever used
in this indenture shall, when the context allows, include, be binding on and enure to the the
benefit of not only the Parties hereto, but also their respective executors, administrators and
assigns.
IN WITNESS WHEREOF the parties hereto have hereunto set their hands and seals.
SIGNED, SEALED AND )
DELIVERED in the )
Presence of )
THE CORPORATION OF THE
TOWN OF TILLSONBURG
MAYOR
CLERK
DATE
DATE
THE LESSEE
FJ y
BRIAN GRAYDO DATE
PRESIDENT
I have the authority to bind the corporation