There are four types of agricultural use agreements that city staff commit to choose from for governing the relationship between the city and a prospective rancher or farmer:
- City contract
- Agricultural license
- Profit-a-prendre
- Agricultural lease
These types of agreement differ by the extent to which the city is directly involved in the management and stewardship of the property. The authority for entering into these agreements differs slightly, and the past practice and preference has been for issuing three-year agricultural leases (or profit-a-prendre for properties subject to a lease-purchase agreement through the Boulder Municipal Property Authority) under the delegated authority of the city manager.
Under a city contract, the city controls the agricultural operation through binding contract specifications and payment to a rancher or farmer for services. This approach might be used when a property requires significant investment to bring it up to a desired level of productivity (e.g., soil recovery, riparian enhancement, facility renovation) or when the rancher or farmer is providing valuable additional services requested by the city (e.g., educational programming, training, purchasing procedures (B.R.C. chapter 2-8). community participation). This type of agreement must also comply with city purchasing procedures (B.R.C. chapter 2-8).
With an agricultural license, the city gives permission to a rancher or farmer to use a property for a specific purpose. The city continues to control many aspects of land stewardship on the property (e.g., restrictions on hay production to benefit grassland birds, wildlife control, fence maintenance, water infrastructure maintenance, payment of water assessments) while it also gives permission for it to be used profitably for agricultural production. The licensed use does not transfer an interest in real property; is not transferable; it is revocable; and while it may be exclusive for the agricultural purpose described, the general use of the property may be non-exclusive in that it is shared with others such as recreational visitors. Licenses may be issued by the department for terms of up to five years (C.B.C., art. XII, § 171(a)) or longer (not to exceed 30 years) with approval of the city council.
With a profit-a-prendre, there is a non-possessory interest in the land, unlike an easement, that gives the holder a right to take the profits from an agricultural crop from the city property. This method has typically been used in situations where the city has used municipal bonds to acquire a property over time, and not been able to convey a lease.
Under an agricultural lease, the city, as landlord, surrenders exclusive possession of the property to the rancher or farmer, as tenant, for a specified time in return for a periodic payment. If the rancher or farmer complies with the terms of the lease, maintains insurance, and makes their payments, the lease remains in place for the term. The lease is exclusive for possession of the property and transferable, unless limited by the specific agreement, and tenant responsibility and limits on possession or use are further specified in the lease terms. The department director has the authority to enter agricultural leases for up to five years (C.B.C., art. XII, § 171(a)).
City staff commit to document the choice of agreement type expected to be offered and its rationale in any Invitation for Proposals. This decision is subject to change at any time based on new information, staff capacity limitations, or other considerations, but such changes will be updated on the city website in a timely manner.
Factors to be considered in the decision on type of agreement will include:
- Condition of the property for agricultural productivity;
- Other open space values or uses provided by the property;
- Desire to convey an interest in real property; and
- Administrative efficiencies, cost-effectiveness, and staff capacity.