Agenda Item Wording:
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Ordinance 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. - First reading of Ordinance No. 2026-08 to authorize the City Manager to award a contract and approve a long-term lease agreement for 408 acres of open ground to Correia Custom Farming
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Agenda Date: 07/20/2026
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 introduce the first reading of 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, including the agreement's five-year initial term with up to five one-year renewal options, annual rent of $25 per acre, surface-water recharge provisions, groundwater pumping prohibition, lessee responsibility for maintenance and improvements, and other terms and conditions substantially as set forth in Attachment 2 - long-t 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 its agricultural experience, knowledge of the property, and 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 eq...
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