Glacier County pauses Logan Health lease renewal after insurance and indemnity questions

Glacier County commissioners on Thursday reviewed proposed amendments to a building lease renewal with Logan Health and decided to delay final approval while county and tenant attorneys resolve insurance and indemnity language.

The discussion, led by a Logan Health representative and county staff, focused on redlined changes that update the tenant’s name and consolidate references to 'facilities' rather than 'buildings and lands.' Commissioners and counsel also probed a provision that ties the county’s recovery of proceeds to indemnifying the tenant.

Stuart Kirkpatrick, appearing remotely as counsel for Billings Clinic, said the contested language was carried forward from earlier addenda and offered to work with the county attorney to reword the sentence so it clearly links recovery actions and distribution of proceeds. "I can do them today," Kirkpatrick said when asked about preparing a clean and redline version for circulation.

Commissioners and staff also discussed when the tenant must file proof of insurance. Participants debated whether to require a certificate on or before October 1 (the lease anniversary) or to have the certificate filed a specified number of days ahead of policy renewal (15 days was discussed). Staff proposed filing the certificate with the County Clerk and Recorder and with the county’s designated insurance agent.

Given remaining uncertainties about precise wording and the need for insurance counsel review, the board voted to table the item for further legal review and redrafting of the lease language. The motion to table was approved by voice vote. Staff said they will circulate a revised redline and clean copy to Mako (the tenant’s legal reviewer) and the county attorney ahead of the reconvened legal meeting.