Agenda Date: 12/16/2025
Subject:
Title
Ordinance 27-2025: An ordinance on second reading authorizing four farm lease agreements on behalf of South Platte Renew
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Reid Betzing, City Attorney |
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Presentations: |
Reid Betzing, City Attorney |
PURPOSE:
To approve four (4) farm leases that the Cities of Littleton and Englewood jointly own near Byers, Colorado and Bennett, Colorado which are used for the South Platte Renew Biosolids Management Program.
LONG-TERM OUTCOME(S) SERVED:
Sustainable Community; High-Quality Governance
DISCUSSION:
South Platte Renew (SPR), is jointly owned by the Cities of Littleton and Englewood.
SPR manages a total of 7,530.6 acres of farm property near Byers, Colorado that was purchased by the Cities of Littleton and Englewood for the beneficial land application of biosolids generated at the SPR facility. Four (4) lease agreements for this property will expire at the end of their existing five (5)-year term on December 31, 2025. These leases have been updated for a term of one (1) year, commencing on January 1, 2026, renewable annually for five (5) years.
The existing lease agreements are between the Cities of Littleton and Englewood (Cities) and Progressive Farms, Craig Farms General Partnership, Gary and Nancy Meier and Jason Meier (Meier), and Kent Beichle. The City Attorneys for both Cities have reviewed and updated the lease agreements. The previous cash rent for the properties that apply biosolids was set at $16.00/acre based on data from the Colorado State Land Board’s equation for standard rates in Adams and Arapahoe Counties. This amount was increased to account for inflation and current agricultural market conditions.
SPR maintains an active and beneficial long-term relationship with its tenant farmer partners in order to sustain the Beneficial Use Program and the successful land application of biosolids. SPR and its tenant partners prioritize industry standard farming practices and adherence to state and federal regulations. Land application of biosolids is not only sustainable, but also avoids the additional expense of landfilling solids produced during the wastewater treatment process.
Amendments to the prior lease agreements include 1) increasing the cash rent per updated calculations and benchmarking and 2) including a clause requiring prior written consent from SPR for tenants to apply fertilizer where biosolids are applied, which was inadvertently removed from the 2016 and 2021 leases.
The cash rent for cropland has been increased to $21.43/acre for the three (3) leases receiving biosolids application. The updated rate was derived from the average of 2024 data from the Colorado State Land Board and National Agriculture Statistics Service, two agricultural real estate indices.
The existing lease agreement with Meier consists of 792.6 acres of cropland and 478 acres of rangeland. While Meier is renewing the agreement for the cropland acres, the tenants will not renew the rangeland agreement. SPR has received interest in the rangeland from another tenant farmer and is working to secure an agreement. In the event that the land is not leased, SPR can still land apply biosolids on the rangeland.
Kent Beichle’s cash rent was increased to $16.00/acre from $14.00/acre because land application is not performed on this land due to odor concerns from nearby residents. The rate represents a 25% discount from the rates applied to the farmers that receive biosolids, as the farmer will incur a higher cost of production due to purchasing and applying fertilizer. Additionally, the soil quality is poorer than the other owned properties.
Summary of Lease Rate Information and Annual Revenue Projections:
|
Farmer |
Rate ($/acre) |
Acres |
Revenue |
|
Progressive Farms |
$21.43 |
4,993 |
$106,999.99 |
|
Craig Farms |
$21.43 |
320 |
$6,857.60 |
|
Meier |
$21.43 |
792.6 |
$16,985.42 |
|
Beichle |
$16.00 |
947 |
$15,152.00 |
|
Total |
7,052.6 |
$145,995.01 |
Total annual revenue generated by the leases is projected to be $145,995.01, representing a 27% increase in revenue.
The SPR Supervisory Committee approved the farm lease agreements and made a recommendation to seek Littleton and Englewood City Council consideration, during the July Supervisory Committee meeting held on Thursday, July 24, 2025.
Prior Actions or Discussions
This ordinance passed on first reading on December 2, 2025.
FISCAL IMPACTS:
The expected increase in annual revenue with the proposed lease rates is detailed below:
|
2021-2025 Annual Revenue |
2026-2030 Annual Revenue |
% Increase |
|
$114,771.60 |
$145,995.01 |
27% |
STAFF RECOMMENDATION:
Staff is recommending approval of the new leases.
ALTERNATIVES:
Council could choose to not approve new leases with the proposed leaseholders and leave the land vacant. Council could also pursue new tenants or attempt to negotiate further.
PROPOSED MOTION:
Proposed Motion
I move to approve Ordinance 27-2025 on second reading authorizing four farm lease agreements on behalf of South Platte Renew.