Kandiyohi County approves conveyance agreement with state for 16‑bed hospital, contingent on three remaining items

Kandiyohi County commissioners on March 25 approved an agreement to convey a 16‑bed hospital property to the state of Minnesota, with the approval contingent on three outstanding items needed for closing: a Wells Fargo termination of lease, a partial release of easement from ARVIG, and a final reconciliation of the master lease.

County Administrator Kelsey Baker presented the conveyance agreement and said County Attorney Shane Baker had reviewed the document. Baker said the agreement is a standard state conveyance form and that closing is targeted for March 31, provided the three contingencies are completed. She told the board that the closing costs will be split 50–50 between Kandiyohi County and the state and that routine fees (such as an $85 county recording fee) may apply.

Baker said the county’s auditors list the facility within the county’s capital assets and that the county’s chief financial officer, Karen Anderson, valued the property at $2.5 million; staff will ensure auditors add a note to the financial statements showing the transfer. She said bond counsel is preparing a short termination document for Wells Fargo after Wells Fargo’s municipal lease unit was reorganized and the county could not locate an active contact for the prior lease-holder.

Commissioners discussed the contingencies and expressed support for finalizing the transfer. Commissioner Burke said he supported the action and noted the costs to formalize the transfer appeared minimal. The board approved the agreement with the stated contingencies; the motion and second carried by voice vote and no roll-call tally was given in the meeting record.

No additional policy actions were adopted at the March 25 meeting related to the property beyond authorizing the agreement contingent on completion of the listed items.