City Farm Lease - 282. 94 Acres and 3323. 30 Acres

The City of San Angelo Real Estate Division is soliciting bids for two farm lease opportunities involving surface estate only, specifically Tract 1 with 282.94 acres and Tract 2 with 3,323.30 acres located in Tom Green County, Texas. The procurement is a five-year lease agreement subject to City Council approval, with an anticipated start date of January 1, 2026, and termination on December 31, 2030. Interested bidders must submit proposals through the City's e-Procurement Portal (Bonfire) by October 16, 2025, with the lease allowing agricultural activities including grazing, cultivation, and related agricultural operations. Qualified vendors must thoroughly inspect the properties, submit their highest annual fee bid for the first lease year, and comply with specific land use restrictions, including conservation plan adherence and limitations on livestock operations and hunting. The annual rent will escalate by 2% each subsequent year, with payments made in advance to the City of San Angelo Water Utilities Department.

Potential respondents must complete several mandatory compliance documents, including a Conflict of Interest Questionnaire, Debarment and Suspension Certification, and Local Preference Consideration Application. The procurement includes provisions favoring local San Angelo businesses, with local vendors receiving preference if their bid is within 5% of the lowest non-local bid for contracts under $500,000. Non-resident vendors must comply with Texas Government Code 2252.002 reciprocity requirements and disclose their home state's bidding regulations. Additional vendor qualifications include maintaining $150,000 in liability insurance, providing documentation of economic development potential, and affirming compliance with local government ethical standards. While specific budget ranges are not explicitly stated, the initial annual lease payment starts at $25,000 and increases to $27,061 by the fifth year, with an initial one-time granting fee of $276. The City reserves the right to award the contract to the highest qualified bidder, with final approval resting with the San Angelo City Council.