The Wells County Commissioners wish to inform the public on a potential development relating to the sale of the county farm at auction in December of 2021.
Prior to the sale of the county farm at auction, the ground was farmed by a company known as Gaiser Farms pursuant to a lease agreement initially executed in February of 2017. Thereafter, the leased premises became a factor in the county’s discussions for the construction of a new highway garage. Accordingly, on Sept. 18, 2019, the county gave written notice to Gaiser Farms of its intent to terminate the lease effective Dec. 31, 2019. However, because the highway garage discussions were ongoing, the county and Gaiser Farms executed an addendum which extended the lease term but still expressly recognized the intent to eventually sell the county farm. Pursuant to the contract terms, Gaiser Farms was to pay one-half of its annual rent on or before Feb. 15 and the other half on or before Nov.15 of each calendar year.
Starting in or around April of 2021, county officials (including County Commissioners) were in repeated contact with Gaiser Farms and its designated agent affirming that the farm was going to be auctioned and the lease extension terminated. The sale was eventually approved at a public Commissioner’s meeting on May 17, 2021 and a story about the sale of the farm ran on the front page of The News Banner the next day. On Oct. 6, 2021, the county gave additional formal written notice to Gaiser Farms of its intent to terminate the lease and addendum effective December 31, 2021.
Two months after receiving the county’s letter terminating the lease, the attorneys for Gaiser Farms tendered a letter demanding $100,000 from the county claiming “potential lost profits” since written notice of the lease termination was sent on Oct. 6, 2021 instead of Oct. 1. Gaiser Farms has made this demand notwithstanding the fact it was fully aware of the plan to auction the farm and terminate the lease throughout 2021, and despite the fact the auction went forward in the same manner as had been discussed with Gaiser Farms over the course of the previous months. Moreover, Gaiser Farm’s demand completely ignores the fact the county was entitled to terminate and cancel Gaiser Farm’s rights under the lease without any required notice in the event Gaiser Farms failed to make its lease payments when due. In 2021, Gaiser Farms failed to timely pay both of its required cash payments.
The Wells County Commissioners are committed to protecting the county and its citizens from aggressive demands for money and/or needless lawsuits and are prepared to respond if an action is filed. The county will stand up for what is right and not take monetary demands or threats of litigation lightly. The county commissioners will continue to inform the public as the matter progresses. In addition, the county commissioners will continue to hope that the farmers and taxpaying citizens of Wells County will not be burdened by this threat and that the matter will be withdrawn quickly.
WELLS COUNTY COMMISSIONERS
Mike Vanover
Jeff Springer
Blake Gerber
