Agenda Item Wording:
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Ordinance adoption authorizing the City Manager to award a contract and approve a long-term lease agreement for 408 acres of open ground to Correia Custom Farming Inc. - Second reading and adoption of Ordinance No. 2026-08 authorizing the City Manager to award a contract and approve a long-term lease agreement for 408 acres of open ground to Correia Custom Farming Inc.
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Agenda Date: 08/03/2026
Prepared by: Rehana Lustyan, Senior Project Manager | Rehana.Lustyan@visalia.gov | 559-713-4176 Nick Bartsch, Public Works Director | Nick.Bartsch@visalia.gov | 559-713-4428
Department Recommendation: Staff recommends that the City Council conduct a second reading and adopt Ordinance No. 2026-08, authorizing the City Manager to award a contract and approve the Long-Term Agricultural Ground Lease Agreement with Correia Custom Farming Inc. for the lease and agricultural management of approximately 408 acres of City-owned open ground farmland, substantially as set forth in Attachment 2 - Long-Term Agricultural Ground Lease Agreement.
Summary:
The City issued Request for Proposals (RFP 25-26-15) for the long-term lease and agricultural management of approximately 408 acres of City-owned open ground near Highway 99 and Highway 198. Correia Custom Farming Inc. submitted the only proposal and was determined to be qualified based on agricultural experience, knowledge of the property, and demonstrated ability to manage SGMA-compliant farming and surface-water recharge operations.
Staff negotiated a long-term lease that provides a five-year initial term with up to five one-year renewal options, annual rent of $25 per acre, continued agricultural stewardship, groundwater-recharge opportunities, and a City allocation equal to ten percent (10%) of qualifying flood-release and storage-release surface water applied to the property. The agreement prohibits groundwater pumping, relies solely on available surface water for irrigation and recharge, ...
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