Title
Action on Resolution 18-093, A Resolution Awarding Bids for City Hay Lease in Section 21-T110N-R50W (West of Brookings Airport)
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Summary:
This resolution will award bids for the 2019-2020 City Hay Land Lease to MC Hay for $110.00 per acre.
Background:
The City owns a 85 acre parcel of property located in Section 21-T110N-R50W, which is west of the Brookings Regional Airport. Previously this parcel consisted of 32 acres of CRP land. The CRP agreement ends in 2018 and therefore the entire 85 acre parcel is available for the hay land lease. The City advertised for bids for a two-year lease. A bid letting was held at 1:30 on Tuesday, November 27, 2018, and the following bids were received:
MC Hay, Brookings, SD $110.00 per acre
Tim Bauer, Elkton, SD $110.00 per acre
David Rochel, Aurora, SD $107.50 per acre
Lyle Johnson, Brookings, SD $82.00 per acre
Brian Fett, Dell Rapids, SD $70.00 per acre
MC Hay and Tim Bauer both submitted bids for $110.00 per acre. SDCL 5-18A-5(10) states that a lottery to select the high bidder can be used in the case of tie bids. The City held a lottery drawing at 4:00 PM on Monday, December 3, 2018 and the Deputy City Clerk drew MC Hay’s name at random with the City Clerk and City Engineer as witnesses. Therefore, the contract will be awarded to MC Hay.
Following approval of this resolution to award the bids, the City will hold a public hearing with intent to lease to a private person at the January 8, 2019 City Council meeting.
Fiscal Impact:
The City will receive $9,350.00 in revenue in 2019 and 2020.
Recommendation
Recommendation:
Recommend awarding the bid to MC Hay in the amount of $110.50 per acre.
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Attachments:
Resolution
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