TO: Indian River County Board of County Commissioners
THROUGH: John A. Titkanich, County Administrator
Sean Lieske Director of Utility Services
FROM: Richard E. Meckes, Assistant Director - Utility Services
DATE: April 7, 2025
SUBJECT: 243.57-Acre Cattle Lease Agreement
_________________________________________________________________________________________
BACKGROUND
On January 15, 2020, the County purchased 243.57 acres south of the West Regional Wastewater Treatment Facility (WRWWTF) identified as "Commander Grove" consisting of 203.81 acres located at 375 82nd Ave., Vero Beach, Florida and 39.76 acres located at 8250 1st Street SW, Vero Beach, Florida. Prior to the purchase by the County, the property was previously leased for a two-year term to Staski Enterprises for cattle grazing. The lease agreement was continued by the County on March 15, 2022, with the agreement being a three-year term, with two (2) one-year terms to run consecutively to the initial term. The expiration of that agreement occurred March 15, 2025.
ANALYSIS
Staski Enterprises no longer have an interest in continuing the lease and has recommended Bailes Ranch II to be their successor as the Tenant of the 243-acre former Commander Groves property. Staff have been in contact with Bailes Ranch II representatives and proposed the opportunity of entering into a new lease agreement for a five (5) year term with three (3) one-year extensions to run consecutively to the initial term. Bailes Ranch II agrees with the proposed terms and conditions of the Lease agreement. The purpose of the lease is solely for grazing livestock. Having a presence on the property discourages trespassers, allows the County to have a representative on site, and saves the county the cost of maintenance and upkeep on the property. Certificates of insurance shall be provided within 10 business days after the execution of the contract. There is a termination, with or without default provision, that allows either party to terminate with a 60-day notice for any reason.
BUDGETARY IMPACT
There is no cost to the County for this lease, as it is a revenue source. The payments to the County amount to $5,490.07 per year, payable in full by April 22nd of each year. This amount will go into the Utilities/Misc/Rents & Royalties account, number 471038-362010. The annual payment amount was determined by using Indian River County Property Appraisers 2024 assessed annual property taxes.
|
Account Name |
Account Number |
Amount |
|
Utilities/Misc/Rents & Royalties |
471038-362010 |
$5,490.07 |
PREVIOUS BOARD ACTIONS
The current lease agreement was approved by the Board of County Commissioners on February 12, 2022. The Lease agreement was renewed by the County on March 15, 2022, with the agreement being a three-year term, with two (2) one-year terms to run consecutively to the initial term. The expiration of that agreement occurred March 15, 2025.
POTENTIAL FUTURE BOARD ACTIONS
Possible annual lease extensions beyond the initial five-year agreement
STRATEGIC PLAN ALIGNMENT
Infrastructure: Planning, constructing, managing, and maintaining critical public infrastructure in response to our current needs, future demands, and the expectations of our community; embracing innovation, technology, and resiliency.
OTHER PLAN ALIGNMENT
None Noted
STAFF RECOMMENDATION
Staff recommends that the Indian River County Board of County Commissioners authorize the Chair to execute the Amendment of the Cattle Lease Agreement with Bailes Ranch II, after final review and approval by the County Attorney’s office.
ATTACHMENTS
1. 243.57-Acre Cattle Lease Agreement