Hay lease for 65 acres from City of Coleman Tx..

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greybeard

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I, am not interested in this of course, but reading it, I thought the requirements for the lessee seem a bit excessive in parts of it's contract.

  • The leases will run from January 1, 2024 (or when awarded) through December 31, 2025, subject to early termination as provided in the lease.
  • No hunting allowed on either property.
  • Lessee will repair ruts or other damage to the premises or service roads leading to the premises caused by Lessee.
  • Lessee will pay any ad valorem taxes assessed on the property.
  • Lessee will indemnify the city.
  • Lessee will carry, at its own expense, and maintain in force during the lease term, liability insurance in the amount of $250,000.00 per occurrence. The policy must insure Lessor, as well as Lessee, for any liability for property damage or personal injury arising from Lessee's occupying or using or Lessor's owning the leased premises and be endorsed to include coverage for broad form contractual liability and a waiver of subrogation in favor of lessor.
  • Lessee shall sign a lease agreement.
lease offered by Coleman Economical Development Corp
 
Typical involvement of a solicitor acting for the lessor not the lessee. They usually have a clause in there that their fees fees are paid by the lessee as swell.

Ken
 
A lot of it amounts to nothing. Only red flag I saw was the tax deal. It likely doesn't have any tax issues but that is extremely odd to put in any lease agreement. In fact, when people start paying taxes and back taxes they could start making claims to the property or putting leins on it. No way I would want a tenant any where near the taxes.
 
Only red flag I saw was the tax deal. It likely doesn't have any tax issues but that is extremely odd to put in any lease agreement.
It was mostly this that caught my eye. But the other thiing was the mention of 'railroad'. If it's adjacent to a RR track, I know from both afriend back in E. Tx and also from a distant relative that has or had for many years, a job spraying RR right of ways and they use some gawd awful strong herbicides. I would be concerned about runoff from their spraying and hay contamination. Some herbicides have some kind of restrictions about hay being sold or even being moved off the property it was produced on.
 

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