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Board approves five-year lease with Minnesota Department of Corrections, includes $150,000 upfit and one-year out clause
Summary
Clay County approved a five-year lease with the Minnesota Department of Corrections for space in the northeast wing of the county justice center; the state will contribute $150,000 for tenant improvements and both parties retain a one-year out clause.
The Clay County Board voted May 27 to approve a five-year lease agreement with the Minnesota Department of Corrections for office space in the justice center’s northeast wing. County staff said construction to upfit the leased space began the same day.
County administration reported the state will provide $150,000 to upfit the space; that payment is incorporated into the lease but staff said the contribution does not create a repayment obligation if either party exercises the contract’s out clause. The lease includes a one-year out clause to allow either the county or the state to terminate under conditions stated in the agreement.
County staff estimated the lease would generate roughly $64,404 annually in revenue to the county, with an additional $20,000 in related revenues anticipated from the relocation. Construction work to prepare the leased space was already underway, staff said, and the county plans to have the lease start on Nov. 1.
Commissioners moved and seconded approval; the motion passed by voice vote and staff will return as required for any further lease administration or contract details.
