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Committee asks law department to review tourism leases and Comber Barn insurance exposure
Summary
The committee directed the county law department to research lease language, property ownership and insurance exposure tied to the Comber Barn and tourism leases after staff raised ambiguity about a deed and whether tourism’s insurance meets lease requirements.
The Sumner County Self Insurance Board Committee voted to direct the county law department to research leases and insurance responsibilities for tourism-managed properties, including the Comber Barn, and to report back with recommendations; the motion passed by voice vote.
Staff explained the county has two related leases: the county’s lease with Rogers Group and a county sublease to the tourism board. A deed executed during earlier negotiations conveyed the Comber Barn back to Rogers Group, but the lease documents in current circulation still describe 17.4 acres that include the barn. The law speaker (identified in the meeting as Law Director) told the committee there is uncertainty whether the original leases remain in force, whether a holdover clause exists and whether the deeded transfer constitutes a material change that alters county responsibilities.
That uncertainty prompted additional insurance questions: tourism’s liability umbrella appeared to be $4,000,000 in the documents presented, while the lease language calls for a $5,000,000 umbrella. Staff recommended clarifying ownership and coverage and suggested renegotiating or replacing leases to produce a single, clear agreement delineating who is responsible for maintenance, liability and required insurance levels. The Law Director noted the county could be exposed to increased tort liability if private parties perform activities for which the county is contractually on the hook; the director recommended cleaning up the leases or moving the relationship so tourism and Rogers handle the property directly.
The committee directed the law department to research the title/lease history and the insurance gaps and to return with options; committee members also noted tourism had retained legal counsel and staff said the matter should be coordinated with the tourism board and its counsel. The committee did not vote to change insurance coverage at the meeting but asked staff to follow up and bring recommended lease and insurance language back to the committee.
