Janesville councilman questions farmland leases
Photo 
Bill Truman
JANESVILLE — Janesville City Council members asked staff on Monday to investigate whether farmers pay a fair price to lease vacant industrial land owned by the city.
Councilman Bill Truman said he was approached by a farmer who complained that the farmer was unable to bid on renting city-owned land.
The farmer told Truman prices charged by the city are far below fair market.
City staff told council members that four of the six farmers leasing city land pay $50 an acre, while the private sector lease rate ranges from $185 to $200.
One farmer pays $75 an acre while another pays $100 an acre.
The land is in the city's TIF districts, so the money is returned there.
Farmers do not bid on the leases but instead renew them annually Nov. 15.
"The last four years I was on the council, this is one item that slipped by me completely," Truman said. "We are way down on the market value of our farmland."
Truman said the council should discuss charging farmers fair market value and putting the land out for bid.
Council member George Brunner said the council should take a look at the fairness and equity to all farmers who wish to lease land.
"If we've got some prime land there, we should put (it) out for highest lease bid in the taxpayer's interest," Brunner said.
Levitt said staff would clarify the circumstances with each lease because they appear to include mitigating circumstances.
Current leases include:
-- Kirk Leach, $50 an acre for 47 acres in the area of Wuthering Heights and Capital Circle.
-- Randy Hughes, $75 an acre for 225 acres at Highway 11 and County G.
-- Robert Mullikin, $50 an acre for 21 acres at Enterprise Drive and Highway 11.
-- David Arndt, $50 an acre for five acres at Beloit Avenue and Venture Drive.
-- James Quade, $100 an acre for 31 acres in the area of Kennedy Road.
-- Tom Metcalf, $50 an acre for 74 acres at Beloit Avenue and Venture Drive.
Apr 14, 2011 at 8:40 p.m.
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Bill w you are just being stupid
Apr 14, 2011 at 8:19 p.m.
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All these farmers have to do is join a union. Then the city council will rush through a contract with them so the governor can't make them pay more. Our city council knows that political statements are far more important than sound fiscal policy.
Apr 14, 2011 at 11:47 a.m.
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We don't have enough detail. I worked in a trust company that leased farmland out of trusts, and every agreement was different. Some were upfront payments and some were also based on the price the farmer got for his crops. Some were long-term agreements that had to be honored as long as the farmer paid the next term's rent by a specific deadline. I know at least some of these farmers do very well, but then again when they can do very well they can spend money in our area, just like any small business person and their employees.
Apr 13, 2011 at 7:27 p.m.
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Kirk's family has farmed the land out in that area for decades. That industrial park and the youth athletic fields were part of his family farm. I am sure the lease price was a condition in the purchase agreement.
Apr 13, 2011 at 5:19 p.m.
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I wouldn't be so quick to assume that. there may be circumstances where this is the way it is due to purchase agreements and the like.
Apr 13, 2011 at 4:37 p.m.
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It seems like another case of poor management.
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