County of Fresno - File #: 22-0625

• File #: 22-0625
• Name: Amendment to Lease Agreement - Gill Farms
• In control: Internal Services
• On agenda: 6/21/2022
• Final action: 6/21/2022
• Title: Approve and authorize the Chairman to execute Second Amendment to Lease Agreement with Lajhbir S. Gill Farms for 238 acres of farmland at the American Avenue Disposal Site ($1,384,723), to include: a. Three-year payment plan of all past-due rent, with payments to be made by December 31 of each year until paid in full, by December 31, 2024 ($1,081,210); b. An acceleration clause of all past-due rent, and any then-currently due rent, immediately payable in the event of any default in any payment under the repayment plan; c. Contractual commitment that Lajhbir S. Gill Farms will not allow any lien by a third party against any of the crops grown on the county-owned farmland; d. Payment by June 30, 2022, of all delinquent possessory interest taxes owed ($303,513); e. Required written verification of all payments of possessory interest taxes on the leased property; and, f. Authorization for the Director of the Internal Services Department/Chief Information Officer to determine that a ma...

Date	Action By	Action	Result
6/21/2022	Board of Supervisors	Deleted

DATE: June 21, 2022

TO: Board of Supervisors

SUBMITTED BY: Steven E. White, Director, Department of Public Works and Planning
Robert W. Bash, Director, Internal Services/Chief Information Officer

SUBJECT: Amendment to Lease Agreement - Gill Farms

RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Second Amendment to Lease Agreement with Lajhbir S. Gill Farms for 238 acres of farmland at the American Avenue Disposal Site ($1,384,723), to include:
a. Three-year payment plan of all past-due rent, with payments to be made by December 31 of each year until paid in full, by December 31, 2024 ($1,081,210);
b. An acceleration clause of all past-due rent, and any then-currently due rent, immediately payable in the event of any default in any payment under the repayment plan;
c. Contractual commitment that Lajhbir S. Gill Farms will not allow any lien by a third party against any of the crops grown on the county-owned farmland;
d. Payment by June 30, 2022, of all delinquent possessory interest taxes owed ($303,513);
e. Required written verification of all payments of possessory interest taxes on the leased property; and,
f. Authorization for the Director of the Internal Services Department/Chief Information Officer to determine that a material breach of the Lease has occurred, and to issue a notice of termination of the Lease to Lajhbir S. Gill Farms, in the event Lajhbir S. Gill Farms breaches the terms of the Lease in the future.
REPORT
Approval of the recommended action will allow Lajhbir S. Gill Farms (Gill Farms) to continue farming the 238 acres of county-owned farmland, but only if Gill Farms comes current on outstanding rents and taxes as provided in the recommended agreement. The recommended amendment provides a payment plan for Gill Farms to pay past due rents owed in three annual payments by December 31 of each year, until December 31, 2024. The recommended amendment also requires all possessory interest taxes owed to be broug...