REQUEST FOR PROPOSALS (RFP #PWFM-19-0104) Lease of Real Property for Agricultural Farming I. OVERVIEW REAL PROPERTY: PURPOSE: SPECIFICATIONS: BACKGROUND: 457 +/- acres located off N. Landing Road., in the City of Virginia Beach, Virginia (All or part of GPINs: 1494-02-1476, 1494-03- 5237, 1494-13-7202, 1484-81-7296, 1484-71-9043, 1484-71-2633, 1484-74-8490 and 1484-94-8243. See Exhibit A. The City of Virginia Beach, Public Works/Facilities Management, is seeking proposals from qualified Offerors to lease the property for Agricultural Farming. Estimated Land Area is 457 +/- acres. The property is currently used for Agricultural Farming. LEASE TERM: City envisions an initial lease term of one (1) year(s) with four (4) one-year renewal terms which will begin January 1, 2019 and end December 31, 2019. II. FUTURE USE The City of Virginia Beach purchased this parcel and is currently offering 457 +/- acres of this parcel of land to be used for Agricultural Farming. Therefore, the City is requesting that qualified (see section III. a. for qualification criteria) persons/companies submit proposals to state their intended purpose for the use of the land. Qualified responders should include in their responses (1) the amount of rent they are willing to pay; and (2) a description of how this area would be used and designed including egress and ingress. III. PROPOSAL REQUIREMENTS a. Respondent Qualifications: i. Experience Qualified responders will have experience in the growing of agricultural crops. ii. Insurability Qualified responders shall have, as a minimum, the insurance requirements listed below: Form Workers Compensation Automobile Liability Limits Statutory $1,000,000 Combined Single Limit Page 1 of 13
Commercial General Liability $1,000,000 Combined Single Limit iii. Responder can have no outstanding debts or claims against the City at the time of execution. b. Submittal of Proposals: Each respondent must submit with their proposal the items listed below: i. Five copies of each proposal in a sealed envelope marked RFP# PWFM- 19-0104, Farm Land N. Landing Road on the outside. ii. All proposals shall be received and date-stamped in the location described below no later than Monday, August 27, 2018-3:00 pm local time. All proposals received after that time will not be considered, and will be returned unopened to the respondent. iii. Location for submissions: City of Virginia Beach Attention: O. Barry Shockley Facilities Management Office 2424 Courthouse Drive Municipal Center, Building 18, Room 228 Virginia Beach, VA 23456 iv. Proposals submitted by telephone, facsimile, or e-mail will not be considered. c. Contents of Proposal: Respondents must include in their proposal the following documents and information which will be used as evaluation criteria : i. Evidence of insurability at limits described above and a copy of your current insurance coverage; ii. A description of the proposed use of the property; iii. A description of your agricultural farming experience; iv. Types of improvements (if any) to be made by responder at responder s expense; v. Targeted timeline for needed improvements; if applicable; vi. Proposed terms of lease agreement including rent offered; vii. Letter of credit showing ability to provide necessary financing, if applicable; viii. Landlord/mortgage company references for past two (2) years; and ix. Anticollusion / Nondiscrimination / Drug Free Workplace Form as referenced below. **PLEASE NO HANDWRITTEN PROPOSALS** IV. REVIEW AND SELECTION The City will evaluate the proposals based on several criteria, including the lease rate offered for the real property and the compatibility of the proposed usage with the restrictions of the property as described and the best interests of the City. The participants will be notified by mail of the City s selection. The City reserves the right to reject any and all proposals and to select the proposal that it deems is in the best interests of the City, even if it Page 2 of 13
is not the highest lease rate. The selection among the proposals shall be in the sole discretion of the City. Only responsive and responsible proposals will be considered. Proposals that attempt to change or do not meet the requirements in this Request for Proposals may be rejected as being non-responsive. Each proposal shall be considered a valid offer until the City notifies participants that it has selected a proposal. If a proposal is selected, the City will notify the selected participant and will prepare a lease setting forth the terms of lease consistent with the terms in this Request for Proposals and the participant s proposal. The tenant will sign the lease, and then the matter will be put on the City Council s Agenda for a public hearing and formal approval pursuant to applicable laws and procedures. V. ANTICOLLUSION / NONDISCRIMINATION / DRUG-FREE WORKPLACE FORM The attached Anticollusion/Nondiscrimination/Drug-Free Workplace form incorporated herein (pages 4 through 6) should be executed and returned with the proposal documents. Page 3 of 13
Anticollusion / Nondiscrimination / Drug-Free Workplace Form ANTICOLLUSION/NONDISCRIMINATION/DRUG-FREE WORKPLACE CLAUSE ANTICOLLUSION CLAUSE: IN THE PREPARATION AND SUBMISSION OF THIS BID, SAID BIDDER DID NOT EITHER DIRECTLY OR INDIRECTLY ENTER INTO ANY COMBINATION OR ARRANGEMENT WITH ANY PERSON, FIRM OR CORPORATION, OR ENTER INTO ANY AGREEMENT, PARTICIPATE IN ANY COLLUSION, OR OTHERWISE TAKE ANY ACTION IN THE RESTRAINT OF FREE, COMPETITIVE BIDDING IN VIOLATION OF THE SHERMAN ACT (15 U.S.C. SECTION 1), SECTIONS 59.1-9.1 THROUGH 59.1-9.17 OR SECTIONS 59.1-68.8 THROUGH 59.1-68.8 OF THE CODE OF VIRGINIA. THE UNDERSIGNED BIDDER HEREBY CERTIFIES THAT THIS AGREEMENT, OR ANY CLAIMS RESULTING THERE FROM, IS NOT THE RESULT OF, OR AFFECTED BY, ANY ACT OF COLLUSION WITH, OR ANY ACT OF, ANOTHER PERSON OR PERSONS, FIRM OR CORPORATION ENGAGED IN THE SAME LINE OF BUSINESS OR COMMERCE; AND, THAT NO PERSON ACTING FOR, OR EMPLOYED BY, THE CITY OF VIRGINIA BEACH HAS AN INTEREST IN, OR IS CONCERNED WITH, THIS BID; AND, THAT NO PERSON OR PERSONS, FIRM OR CORPORATION OTHER THAN THE UNDERSIGNED, HAVE, OR ARE, INTERESTED IN THIS BID. DRUG-FREE WORKPLACE DURING THE PERFORMANCE OF THIS LEASE, THE LANDLORD AGREES TO (I) PROVIDE A DRUG-FREE WORKPLACE FOR THE LANDLORD'S EMPLOYEES; (II) POST IN CONSPICUOUS PLACES, AVAILABLE TO EMPLOYEES AND APPLICANTS FOR EMPLOYMENT, A STATEMENT NOTIFYING EMPLOYEES THAT THE UNLAWFUL MANUFACTURE, SALE, DISTRIBUTION, DISPENSATION, POSSESSION, OR USE OF A CONTROLLED SUBSTANCE OR MARIJUANA IS PROHIBITED IN THE LANDLORD'S WORKPLACE AND SPECIFYING THE ACTIONS THAT WILL BE TAKEN AGAINST EMPLOYEES FOR VIOLATIONS OF SUCH PROHIBITION; (III) STATE IN ALL SOLICITATIONS OR ADVERTISEMENTS FOR EMPLOYEES PLACED BY OR ON BEHALF OF THE LANDLORD THAT THE LANDLORD MAINTAINS A DRUG-FREE WORKPLACE; AND (IV) INCLUDE THE PROVISIONS OF THE FOREGOING SECTIONS I, II, AND III IN EVERY SUBCONTRACT OR PURCHASE ORDER OF OVER $10,000, SO THAT THE PROVISIONS WILL BE BINDING UPON EACH SUBCONTRACTOR OR VENDOR. FOR THE PURPOSE OF THIS SECTION, DRUG-FREE WORKPLACE MEANS A SITE FOR THE PERFORMANCE OR WORK DONE IN CONNECTION WITH A SPECIFIC CONTRACT AWARDED TO A LANDLORD IN ACCORDANCE WITH THIS CHAPTER, THE EMPLOYEES OF WHOM ARE PROHIBITED FROM ENGAGING IN THE UNLAWFUL MANUFACTURE, SALE, DISTRIBUTION, DISPENSATION, POSSESSION OR USE OF ANY CONTROLLED SUBSTANCE OR MARIJUANA DURING THE PERFORMANCE OF THE CONTRACT. Page 4 of 13
NONDISCRIMINATION CLAUSE 1. EMPLOYMENT DISCRIMINATION BY BIDDER SHALL BE PROHIBITED. 2. DURING THE PERFORMANCE OF THIS CONTRACT, THE SUCCESSFUL BIDDER SHALL AGREE AS FOLLOWS: a) THE BIDDER, WILL NOT DISCRIMINATE AGAINST ANY EMPLOYEE OR APPLICANT FOR EMPLOYMENT BECAUSE OF RACE, RELIGION, COLOR, SEX, NATIONAL ORIGIN, AGE, DISABILITY, OR ANY OTHER BASIS PROHIBITED BY STATE LAW RELATING TO DISCRIMINATION IN EMPLOYMENT, EXCEPT WHERE THERE IS A BONA FIDE OCCUPATIONAL QUALIFICATION/CONSIDERATION REASONABLY NECESSARY TO THE NORMAL OPERATION OF THE BIDDER. THE BIDDER AGREES TO POST IN CONSPICUOUS PLACES, AVAILABLE TO EMPLOYEES AND APPLICANTS FOR EMPLOYMENT, NOTICES SETTING FORTH THE PROVISIONS OF THIS NONDISCRIMINATION CLAUSE. b) THE BIDDER, IN ALL SOLICITATIONS OR ADVERTISEMENTS FOR EMPLOYEES PLACED ON BEHALF OF THE BIDDER, WILL STATE THAT SUCH BIDDER IS AN EQUAL OPPORTUNITY EMPLOYER. c) NOTICES, ADVERTISEMENTS, AND SOLICITATIONS PLACED IN ACCORDANCE WITH FEDERAL LAW, RULE OR REGULATION SHALL BE DEEMED SUFFICIENT FOR THE PURPOSE OF MEETING THE REQUIREMENTS OF THIS SECTION. d) BIDDER WILL INCLUDE THE PROVISIONS OF THE FOREGOING SECTIONS A, B, AND C IN EVERY SUBCONTRACT OR PURCHASE ORDER OF OVER $10,000, SO THAT THE PROVISIONS WILL BE BINDING UPON EACH SUBCONTRACTOR OR VENDOR. Page 5 of 13
Offeror Information: By: (signature) Printed Name: Date: Title: Address: E-mail : Phone No. ( ) Fax No. ( ) TIN Is your firm a minority business? Yes No If yes, please indicate the minority classification below: African American Hispanic American American Indian Eskimo Asian American Aleut Other; Please Explain: Is your firm Woman Owned? Yes No Is your firm a Small Business? Yes No Page 6 of 13
SAMPLE LEASE AGREEMENT EXHIBIT A THIS LEASE AGREEMENT made this day of, 2019, by and between the CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia, hereinafter referred to as CITY or LESSOR, party of the first part, and, a Virginia partnership hereinafter referred to as or LESSEE, party of the second part. W I T N E S S E T H 1. LEASED PREMISES. That for and in consideration of the rents, covenants and agreements hereinafter reserved and contained on the part of the Lessee to be observed and performed, City leases to Lessee and Lessee rents from City the following property, hereinafter referred to as the Property, delineated upon the attached plats labeled Exhibit A entitled EXHIBIT A approximately ACRES OF FARM LAND (GPIN ) TO BE LEASED TO BY THE CITY OF VIRGINIA BEACH, reference being made to said exhibits for a more accurate description thereof. 2. RENT. That for and in consideration of the sum of annually, payable on of each year, Lessor does hereby lease and demise unto Lessee the Property. Rent shall be remitted to Lessor at the address provided in Paragraph 15 herein, or such other address as Lessor advises Lessee in writing at least five (5) days prior to the due date of the next installment of rent. 3. TERM. The term of this Lease shall be for ONE (1) year from January 1, 2019 to December 31, 2019. This Lease may be renewed for FOUR (4) successive one-year terms (January 1 to December 31 st ) at the mutual discretion of the parties, based on the following conditions and stipulations: lease term shall expire; and A. Lessee must request, in writing, a renewal not later than two months before the then current B. Lessee must be in compliance with all terms and conditions of the Lease; and C. The leased area is subject to modification for each year s renewal; and Page 7 of 13
D. The rental amount is subject to negotiation for each year s renewal and must be paid within thirty (30) days of receipt of City s acknowledgement of renewal; and sole discretion. E. All other terms and conditions of the Lease shall remain in force for each renewal term, at City s 4. USE OF PROPERTY AGRICULTURAL PURPOSES. Lessee covenants that the Property shall be used solely for agricultural purposes. All the Property that can be placed under irrigation and is suitable for farming shall be farmed during the term of the Lease, in a good and farm like manner. If the Property or any part thereof is not so farmed, or is permitted to deteriorate, or if any waste is caused or permitted thereon by Lessee, this Lease may be terminated on thirty (30) days notice by City. Waste, as the term is employed herein, shall include the cutting or removal of any timber on the Property, except as approved in writing by City. Lessee shall use the Property only for purposes listed herein and any other use thereof, unless necessarily incidental to such listed and allowed uses, shall constitute a breach of this Lease and cause its immediate termination. The Property is leased by City to Lessee as is, and the sole responsibility for the maintenance and upkeep of the Property shall be with Lessee. 5. ASSIGNMENT AND SUB-LEASE. This Lease may not be assigned or transferred, and the Property shall not be sublet, either in whole or in part, by Lessee, without the City s agreement in writing. 6. TERMINATION AND RIGHT OF ENTRY BY CITY. A. Lessee shall not be entitled to renew this Lease in the event Lessee is in default in the performance of any of the covenants, terms or conditions of this Lease. B. CITY reserves the right at any time without prior written notice to enter upon the Property, after it has been determined that an emergency exists. C. The parties acknowledge that the CITY has certain powers, purposes and responsibilities. To discharge its powers, purposes or responsibilities, CITY shall have the right to require the Lessee to immediately dismantle and remove any and all improvements from the Property, within forty-eight hours after notice is given to the Lessee. Thereafter, CITY shall have the exclusive right to enter upon the Property, and Lessee shall surrender possession and control thereof to CITY. Page 8 of 13
D. Further, CITY reserves the right to terminate this Lease by giving written notice to Lessee at least ninety (90) days prior to the date of termination. If harvesting of the Lessee s crop has not been completed, all rent paid in advance shall be refunded. E. Should it become necessary for CITY to enter upon the Property in accordance with paragraph 6.B. or 6.C of this Lease, and if such action causes damage to, or loss of, any or all of Lessee s unharvested crop, City agrees to pay to Lessee a mutually agreed upon sum to cover Lessee s loss. Lessee must submit a written claim to City within sixty (60) days of the date on which damage was sustained. F. Should CITY and Lessee disagree on the monetary amount of the damage sustained per paragraph 6.D. of this Lease, CITY s Director of the Department of Agriculture shall determine the amount of damage and his decision shall be final. 7. Lessee will keep all equipment and improvements, if any, placed upon the Property by Lessee, in a safe, clean, and orderly condition; be responsible for all activities on the Property that fall under his control; and will act immediately in response to any notices by CITY with reference to the forgoing. It is further understood and agreed as part of the consideration hereof, that Lessee shall be responsible for the maintenance and/or repair of the Property arising out of Lessee s use of the Property. Should any maintenance and/or repair work be deemed necessary, then the decision of CITY as to the scope of the required work and the amount of such liability shall control and be binding on Lessee. 8. CITY S RIGHT TO GRANT EASEMENTS. CITY reserves the right to grant easements and rights of way across or upon the Property, for streets, alleys, public highways, drainage, utilities, telephone and telegraph transmissions lines, pipelines, irrigation canals, and similar purposes. 9. INDEMNIFICATION/INSURANCE BY LESSEE. Lessee shall indemnify and save harmless CITY and all its officials, agents and employees from and against all losses and expenses incurred because of claims, demands, payments, suits, actions, recoveries, and judgments of every nature and description brought or recovered against them by reason of any injuries to property or person, including death, occurring on the Property, arising out of or in connection with Lessee s use of the Property. During the term of this Lease, Lessee shall obtain and keep in force the following policies of insurance: Worker s Compensation Insurance as required under Title 65.2 of the Code of Virginia. Page 9 of 13
Commercial General Liability Insurance in an amount not less than One Million Dollars ($1,000,000) combined single limits (CSL). Such insurance shall name City as an additional insured. Automobile Liability Insurance including coverage for non-owned and hired vehicles in an amount not less than One Million Dollars ($1,000,000) combined single limits (CSL). All policies of insurance required herein shall be written in a form, an by insurance companies licensed to conduct the business of insurance in Virginia and, acceptable to CITY, and shall carry the provision that the insurance will not be canceled or materially modified without thirty days (30) prior written notice to CITY. Lessee shall provide a certificate evidencing the existence of such insurance. 10. TAXES. If applicable, Lessee shall be responsible for paying all personal property taxes assessed upon the Lessee facilities, and for paying taxes on its leasehold interest pursuant to Virginia Code Section 58.1-3203, or any successor statute. 11. APPLICABLE LAW. This Lease shall be deemed to be a Virginia Lease and shall be governed as to all matters whether of validity, interpretations, obligations, performance or otherwise exclusively by the laws of the Commonwealth of Virginia, and all questions arising with respect thereto shall be determined in accordance with such laws. Regardless of where actually delivered and accepted, this Lease shall be deemed to have been delivered and accepted by the parties in the Commonwealth of Virginia. 12. COMPLIANCE WITH ALL LAWS. Lessee shall comply with all laws, rules and regulations of CITY and all other governmental authorities respecting the use, operation and activities on the Property, including all applicable environmental Laws, and shall not make or be a party to any unlawful, improper or offensive use of such premises or nuisance thereon. department thereof. It is expressly understood and agreed that Lessee, in no way, represents or acts on behalf of CITY or any 13. VENUE. Any and all suits for any claims or for any and every breach or dispute arising out of this Lease shall be maintained in the appropriate court of competent jurisdiction in the City of Virginia Beach. 14. INVALIDITY. If any section, paragraph, subparagraph, sentence, clause or phrase of this Lease shall be declared or judged invalid or unconstitutional, such adjudication shall not affect the other sections, paragraphs, sentences, clauses or phrases. Page 10 of 13
15. NOTICES. Any notice which may be or is required to be given pursuant to the provisions of this Lease shall be delivered or sent by certified mail, prepaid, return receipt requested, and addressed as follows: If to Lessee, to: LESSEE NAME LESSEE ADDRESS LESSEE PHONE If to CITY, to: FACILITIES MANAGEMENT OFFICE 2424 COURTHOUSE DRIVE BUILDING 18, ROOM 228 VIRGINIA BEACH, VA 23456 Rental Payments, to: TREASURER, CITY OF VIRGINIA BEACH 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VA 23456 Page 11 of 13
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EXHIBIT A 7 8 2 3 6 1 4 5 Brown Farm Parcels 7/9/2018 1. 1494-02-1476 6. 1484-71-2633 2. 1494-03-5237 7. 1484-74-8490 3. 1494-13-7202 8. 1484-94-8243 4. 1484-81-7296 **AREA IN BLUE NOT PART OF LEASE** 5. 1484-71-9403 Page 13 of 13