Quaker Oats Receives 3.5 Acres From City

Last week the Manhattan City Commission transfered 3.5 acres of land in the East Industral Park to the Quaker Oats Company.

Here is part of a Memo given to the Commissioners.

BACKGROUND

The City is in receipt of a letter from The Quaker Oats Company requesting the transfer of 3.5 acres of land located to the west of Quaker’s
Manhattan facility.

The City Commission may be aware that The Quaker Oats Company recently decided to close its St. Joseph, Missouri facility and announced
plans to keep the Manhattan facility open. The Manhattan facility is currently in a growth phase and in the process of hiring 40 additional
employees and needs additional space to construct a new tractor-trailer lot to the west of the facility. It is proposed that the additional land
will meet these needs and assist Quaker Oats with the possibility of expanding the facility.

DISCUSSION

The agreement with the Farrar Corporation provided for the transfer of the land in question, Lot 2 in the Farrar Addition, to the Farrar
Corporation if the City had not sold the property by December 31, 2002. Presently, per the terms of its agreement with the City, the Farrar
Corporation has been paying the special assessments on this property.

Terms of the proposed agreement to transfer the land to The Quaker Oats Company provide that Quaker Oats would be responsible for the
remaining special assessments on the property. In addition, The Quaker Oats Company would dedicate an easement across its property for a
possible future rail spur. The properties along the south side of the Farrar Addition, including Lot 2, have a rail easement and this rail
easement may be of use in the future with other economic development prospects in the Industrial Park. It is proposed that the property be
transferred to Quaker Oats at no cost to the company with the satisfaction of the two aforementioned requirements which would benefit the
City.