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3/14/23,3:06 PM Item Coversheet <br /> in <br /> Public Works <br /> DATE: 3/14/2023 <br /> MEMO: 2023-01 <br /> TO: Honorable Mayor Julie Moore Wolfe and City Council Members <br /> FROM: Scot Wrighton,City Manager <br /> Matt Newell, P.E., Public Works Director <br /> Keith Alexander,Water Production Manager <br /> Jennifer Gunter,Watershed and Lake Manager <br /> SUBJECT: <br /> Resolution Authorizing Cash Rent Farm Lease with Tiger Fiber Inc.for Oakley Sediment Basin Interior <br /> SUMMARY RECOMMENDATION: <br /> It is proposed that the City Council adopt the attached resolution authorizing a Cash Rent Farm Lease with Tiger Fiber Inc. for <br /> growing hemp for industrial purposes in the Oakley Sediment Basin Interior at no cost to the City. <br /> BACKGROUND: <br /> City staff,First Illinois Ag Group,and Tiger Fiber,believes that portions of the Oakley Sediment Basin(Basin)have dried <br /> sufficiently to allow some of the interior sediment to be reclaimed for possible agricultural production. There are approximately <br /> 390 acres inside the Basin. The sediment is very deep and has unique and somewhat unknown agronomic and water holding <br /> characteristics. Therefore,First Illinois Ag Group,the City's farm management consultant,recommends that a 11-month lease be <br /> authorized with Tiger Fiber Inc. to attempt to grow hemp for industrial purposes(fiber)on up to 65 acres. If the crop is successful, <br /> it will be harvested. <br /> If this lease is successful,it is anticipated that a new lease may be negotiated with Tiger Fiber Inc.,or possibly another firm,with <br /> the possibility of the City receiving a lease payment and a portion of the crop revenue generated. If this lease is not successful,it <br /> will be a learning experience for all involved at no cost to the City. This experience will help as we continue pursuing reclamation <br /> options. <br /> There are several reasons why First Illinois Ag Group recommends Tiger Fiber Inc.: <br /> 1. Hemp can help with vegetation management by outcompeting and suppressing weeds,reducing the need for synthetic <br /> herbicides. This may help control weed growth in the heavily overgrown basin. <br /> 2.Due to this experimental operation and the risk of getting farm equipment stuck in the Basin's sediment,the lease is at no cost to <br /> the City,and the City will not receive any crop revenue,if any is generated. <br /> 3.Hemp will be planted in the spring and harvested in the fall of 2023. <br /> 4.Tiger Fiber Inc. will be responsible for assuring that the test plot has proper hemp production certifications with the State. <br /> 5.Tiger Fiber Inc. is a partner in the City's USDA Regional Conservation Partnership Program(RCPP)grant to demonstrate the <br /> beneficial cultivation of hemp in our watershed for soil health,water quality,and economic development. They have committed <br /> an in-kind contribution valued at$85,000. This means that all funds,materials, and labor that Tiger Fiber expends will count as a <br /> match towards the RCPP grant. <br /> This project is another step toward reclaiming the Basin's interior for productive use. Agricultural production and/or other options <br /> could begin providing revenue for the City. <br /> https:Hdecatur.novusagenda.com/agendaweb/CoverSheet.aspx?Item ID=4301 1/2 <br />